Failure In The Restaurant Industry Occurs In The First Year

If you don’t do the right things during the startup of your restaurant you will most likely fail during your first year.

I know the most common pitfalls and mistakes of beginners in the hospitality industry. I decided to share my learned lessons and to help future restaurant owners how to minimize the most common beginner’s mistakes.

The most common reasons why failure rate increases during the restaurant first year :

  • Low start-up capital
  • Poor cuisine choice
  • Lack of menu engineering
  • Poor restaurant concept choice
  • Lack of target market research
  • Lack of a restaurant theme 
  • Poor startup business plan
  • Poor knowledge about competition
  • Wrong Location
  • Poor management and staff hiring


Starting a restaurant is a serious decision and so understanding the proper steps of the process and what to do at each one, is unquestionable, the key to success and to prevent failure.

Here are some of those critical steps you must do during your startup phase to avoid failure.

Your CUISINE is the first thing to consider when planning your restaurant.

What style of cooking will you be offering and serving? 

Ultimately, the success of your restaurant hinges on knowing and satisfying your ideal CUSTOMERS dining Desires & Needs! To service and sell to an audience, you have to understand them.

If you don’t know who your ideal customers are how can you find the right LOCATION?

Who is your perfect customer?

A restaurants CONCEPT is best described as your restaurant’s business model. The Cornell University School of Hotel Administration confirms that the most successful restaurateurs have a clear concept and the ability to implement it consistently.

What restaurant model have you decided on?

Your THEME is your identity! One of the most efficient ways to drive more customers to your business is creating an attractive and engaging restaurant theme.

 Have you decided on a theme?

A well- planned and designed MENU can help any restaurant achieve its goals, most importantly keep your customers coming back to try more of what’s on it.

Have you created a menu that is attractive and profitable?

A start-up is a new creation! It’s a new business, and its story is yet to be written.

A BUSINESS PLAN can overcomplicate a start-up! I believe you must start with a simple, effective plan.

Do you have a valid, simple business plan?

You need to be very familiar with your COMPETITION. Analyzing who they are, and what they are offering, can help make your restaurant’s cuisine, services and marketing stand out.

Who are your competitors?

Doing all the right things to do at the beginning of any startup is imperative. Our site offers resources and course to help you cut through the confusion and turn your dream into a reality!