On the other hand, the 30 percent failure rate resulted in the
market’s growing by 219 percent, to 3,287 units, a more realistic
number. We conclude, therefore, that the reported 90 percent
restaurant failure rate is a myth. These results are
strongly supported by the outcomes of economic data simulations
reported by the Sydney and many other academic
research studies showing that restaurant failure during the
first year of operations is about 30.0 percent. Indeed, when
American Express was asked for its data, it stated in writing
that it could not provide data supporting the 90 percent failure
assertion it made.—H.G.P. and J.T.S.