But by now, many of us also know that these statistics are myths. In 2014, a study by economists at the University of California, Berkley showed that in fact, restaurant businesses fail at a slightly lower rate than other businesses – 17% in the first 12 months vs 19% average closure for new businesses across the spectrum.
The myth may be caused by the high public visibility of the closure; we see the birth and demise on our high streets every day. The financial cost is also significant – a recent study puts the average cost of a restaurant start-up at $375k (excluding building purchase).
Google the phrase above and you will get screens full of blog posts with headlines like “Top Ten Reasons Restaurants Fail” which list 8, 10, 12, 15, or 21 reasons why restaurants fail. The lists are extremely comprehensive – a list of all the things that could have caused the problems.
All true and all valid points. But what help is a blog post to tell you that the cause could be literally anything, including you as an owner? It’s a little like a horoscope – so general as to be undeniably correct and yet not close to actionable.
Our core principle is that specific data will always be more useful than general trends. We apply this principle to help you out of any current difficulties by analysing how you are performing against the industry in a variety of different dimensions – financial, operational & customer facing.
By sharing with us some details of your business, we will analyze your offering against other restaurants in your area and give you at least 5 concrete and easy-to-implement steps to start to turn around your business.
This is the best part. It’s up to you. If business isn’t going well, you can’t afford to pay for high-priced consultants to tell you what you already know. So here is the deal.