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Why close the restaurants and how to avoid it?


In the hospitality business, This is not only "Give good eating", their success also depends on many other factors, such as excellent service and good management. A study by Ohio University says the 60 percent of the restaurants do not reach their first birthday, and the 80 percent fail within five years. While these statistics may not be accurate in general or may not be accurate for the Spanish market, the fact that there suggests that there are many why it is easy for a restaurant fail in the initial stage.

The main reasons why a business fails hospitality which I usually try to summarize in this article. Many times, We know the theory, but not we implement:

A case that is frequently found lack of management experience of new entrepreneurs, the crisis has led the entry of new investors in the sector, these new players having no knowledge of the areas that should be paid more attention, often neglect key factors in managing your business.

Another reason is The ubication, It is one of the most important factors and must pay close attention and never forget that "the cheapness usually get very expensive". Find a suitable place, It is not an easy task, and more in large cities where competition is fierce and you have to make decisions on matters of hours. It's important to know that type of client we are looking, card type and average price per diner. Not the same location for a business of high customer turnover, tipo “low cost”, a la carte restaurant. Not forget that rental price will be one of the most important fixed costs we will have brand and the sales target.

Another reason is usually the recruitment without training in hotel. It is true that not always are experienced professionals, with the characteristics we consider necessary and often accept the conditions, at the time, we can offer. In this sense, there is a risk of providing poor service, but I would like to emphasize that for me, the most important is the capacity must be taken to retain those employees who form and which bet.

The "Flight of talent", It leads to wear of time and money, transforming what would be a good practical value of an investment in staff, a waste of time and sense of frustration, by the employer who returns to encounter a "problem". It is essential to find professionals, for their experience and preparation, fit our business, but also for his personal qualities. There must be a link between employees, the employer and your business, for the commitment of all be transmitted in every gesture, very positive and directly impacting on customer service.

Even if it looks like a lie, another reason why businesses fail, It is the absence or malfunction of technological solutions. No one, in other sectors it arises manage a business 600 thousand euros per year, without a computer help you track sales, costs of raw materials or personnel. Managing a restaurant with spreadsheets is really difficult, we must bet on technological solutions to help us control our costs and sell more.

"More of the same", is another reason why a restaurant closes, same menu in any restaurant, same decoration, nothing apart from the rest ... lack of creativity or originality.

Definitely, the key to success is ensure that all parts of your hospitality business can communicate properly and run like clockwork; the food orders must reach the kitchen with all the necessary information, where it is cooked with good raw materials, controlling costs and finish these dishes on the table of diners exceeding their expectations in a different location, turning your customers into ambassadors of your business.

About the Author

I did my undergraduate degree in Economics and Business at Saint Louis University - U.S, and subsequently by the PGD IESE. I have had the opportunity to live in different countries (USA, Switzerland, France and Brazil) making my mind to be a citizen of the world. With experience in large distribution, working at Toy R Us and DIA International, I started my career in hospitality ago 17 years in Compass Group as General Manager of Corporate Services. In the year 2011 fundé MRM Foodservice Solutions, and since then we help companies better manage your business, contributing our experience and knowledge in search, implementation and maintenance of technological solutions for the HORECA channel.



  1. The first thing in a restaurant is to have qualified staff,and if possible not too young,since most lack education, professionalism, interest and desire to work,a restaurant should not be too ornate in decoration,affordable prices and change menus weekly,dealing with customers must be correct ,and above all cleaning and not allowing inconvenience,screaming children.

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