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Mistakes to Avoid When Running a Restaurant Business

Running a restaurant business is not as simple as it may seem. It requires a creative strategy and meticulous planning. Unfortunately, 60 percent of all restaurants are out of business within their first year. About 80 percent go out of business in their first five years. Keeping reading to learn about common management mistakes that you need to avoid.

  1. Hiring the Wrong Employees

Your employees are the backbone of your restaurant and you need to pick them wisely. If they are unqualified or inexperienced, they may bring your restaurant down. Choosing a chef for your restaurant is one of the most important things that you’ll need to do. People identify your restaurant by its food and staff. If you go wrong with these factors, you are likely to fail.

  1. Non-Strategic Menu pricing

You need strategic menu pricing for your restaurant to flourish. If you are selling an item for less than its worth, you are making losses no matter how much traffic you may be attracting. Your selling prices should be about three times the total food cost. Remember that you are charging customers for your services and ambiance, not just a dish.

  1. Failure to Have a Grand Opening

This is one of the most common restaurant management mistakes. You only get one chance to open and failure to get yourself noticed would be stupid. Your grand opening is the first chance you get to make an impression. It is your opportunity to let customers know that you have entered the market. Inviting customers to sample your food and services for free may encourage them to keep coming back.

  1. Ignoring Your Location

With the hospitality industry, location is everything. It may determine your restaurant’s success or failure. Most customers dine at accessible locations. They are unlikely to visit your restaurant if it isn’t visible to them. Determine the type of customers you wish to attract and pick a location that appeals to them. Other factors come later.

When trying to pick a location for your restaurant, think of the theme and concept as well. Do not invest before performing a market analysis. If you want to invest in a fine-dining restaurant, for example, a university or student-centric area may not be your best option. Fast food restaurants would do better in such areas.

  1. Inconsistency

Inconsistency is a common blunder in restaurant management. The quality of food and services you offer should remain the same even as your business grows. Many restaurants offer exceptional services in their first few months of operation. However, they may stop paying attention to it after capturing the interest of a few loyal customers.

Your customers are unlikely to come back if you are inconsistent. If you slack, they will leave for a better restaurant. If glitches happen, make up for them with discounts or free meals.

If you need help designing a restaurant that promotes profits, you need the help of professionals like Dawnvale. The team works with you from the beginning of your project to the end.

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