Even before the recession started, restaurants have come and gone, all over the country. According to H.G. Parsa, an associate professor in Ohio State University's Hospitality Management program, found that about one in four restaurants close or change ownership within their first year of business.* The big question is why? Why do so many restaurants fail so quickly? Few other businesses tout such disheartening statistics.
Most restaurants don’t fail because of just one problem. It usually a combination of problems that finally reach a head and the business can’t be saved. Here are ten common reasons that many restaurants fail within their first three years.
• 1.Location. I’ve said it over and over again. And I will continue to say until I am blue in the face. Location. Location. Location. A bad location is one of the biggest (if not THE biggest) reason a restaurant fails. Poor visibility, no parking, no foot traffic, or maybe being cursed are just a few of the problems associated with a bad restaurant location.