Past research on restaurant failures has focused
mostly on quantitative factors and bankruptcy rates.
This study explored restaurant ownership turnover
rates using qualitative data, longitudinal data (1996-
1999), and data from Dun and Bradstreet reports. In
contrast to frequently repeated statistics, a relatively
modest 26.16 percent of independent restaurants
failed during the first year of operation. Results from
this study indicated marginal differences in restaurant
failures between franchise chains (57.2 percent) and
independent operators (61.4 percent). Restaurant
density and ownership turnover were strongly correlated
(.9919). A qualitative analysis indicated that
effective management of family life cycle and qualityof-
life issues is more important than previously
believed in the growth and development of a
restaurant.