You’re here because you have the courage to learn about the signs of a business in need of some TLC. There are several ways a business can fail, and they aren’t necessarily your fault. However, you can change the elements under your control. Don’t let the competition take the lead when you have fire in your belly to succeed!
Running a restaurant is difficult, especially if it’s suffering from the symptoms of a failing business. Discover if your business is failing here.
5 Signs Your Restaurant Business is Failing
Don’t let these 5 symptoms of a failing restaurant business sneak up on you. Be honest with yourself, co-owners, and employees. Make sure you’re updating your financial figures and read about how to run a business smoothly. These tips are not intended to patronize, but instead to shed light on the situation.
1. Bad Location
Just like a well-balanced meal, your target clientele, neighbourhood, parking availability, and prices must be in perfect proportion. In addition, if it has poor visibility, little foot traffic, or too many competitors around, you could be headed for failure. Higher rent might benefit you if your target clientele lives in the vicinity, so figure that into the cost of running a business.
2. Your Experience
Learning how to run a successful business, more specifically, how to run a restaurant, takes time and patience. You knew that going in, but sometimes we think passion will make up for that. “My restaurant is failing!”, you may tell yourself. There’s always more to learn alongside the experts.
Did you start with an apprenticeship for a couple of years before considering ownership? These can give you valuable accounting experience and advice for increasing sales (click here for more).
3. Unresiliant Staff
You may have loved them during the interview, but are you sure they’re reflecting the same passion you have for great food and customer experience? While running a small business you need to know your staff can master customer service while in any mood. Test this, and other areas of your restaurant by using surveillance cameras or mystery customer audits.
4. Poor Management
Hire managers who have been cooks and/or waitstaff before. This will earn them the staff’s respect. Who wants to be bossed around by someone who can’t empathize? Great restaurant managers will help out staff beyond their job descriptions. Moreover, if they know how to run a small business they’re an asset.
5. Food Quality
Great food depends on experience and knowing which elements make your cuisine stand out from the competition. Hire professional food critics to give you notes. Put in the time to travel in search of exotic flavors and keep improving your dishes.
Go Big or Go Home
You, as a restauranteur, are an inherent risk-taker. This is a great mindset when you have the means, confidence, skills, etc. Think realistically about how things are going. If your business is failing, don’t give up, because a small fix might change everything for the better.
Browse our online magazine for some more healthy lifestyle tips!