Keys to Avoiding Restaurant Failure
TAGeX Brands has been helping businesses for over 30 years and it is unfortunate to witness the unpredictable rise and fall within the restaurant industry. Make sure to keep these ideas in mind when opening a new restaurant to give yourself the best chance of success!
Location is Key
When starting a restaurant, one of the most underrated factors to consider is the physical location of the restaurant. While you obviously don’t want to start up your business where there is poor visibility, no parking and no foot traffic, you also must carefully analyze the cost of rent to make sure it is going to be cost effective. Depending on the basis of your restaurant’s plan, it is very important to find a happy medium between traffic and rental cost to keep your business thriving and surviving.
Top Notch Financial Reporting
Keep in mind, the profit margins in the restaurant industry are SLIM. In fact, most restaurants profit margins fall between only 3-5%. With such small profit margins, being absolutely positive there are no errors on any of your financial statement is crucial. Just a few mistakes, and it could turn your restaurant into a catastrophic financial situation.
Awesome Customer Experience
For any business, the customer experience is something that always must be pushed above and beyond, especially in the restaurant industry. Its unfortunate, but one bad experience can send a restaurant in a downward spiral, believe it or not. People always tend to remember the bad experiences over the good ones and are most certainly more willing to share their bad experiences with others before the good. To give customers the best experience possible, make sure the staff is carefully trained and can handle dealing with irrational customers. Remember, the customer is always first.
Don’t Forget to Market
Ideally the best marketing strategy is that your food is so great that customer will want to scream it from the roof top…. However, in most newly opened restaurant, this is not the case. It is always a good idea to set aside some money to do some marketing to get your name out there. In today’s day and age, digital marketing campaigns seem to be the most effective, especially in brand new startup companies.