Can a Restaurant Be Successful in This Economy?
We hear so much bad news when it comes to the state of the economy. They say the economy is declining, there is no work, and that people are not spending money. Overall that may be true but you can create your own economy and thrive, because people are spending money albeit not as much as previously.
However, can a restaurant be successful in this economy?
For most businesses it can be very challenging to be sustainable in a declining economy but for a restaurant this challenge is much more. Banks see restaurants as a risky business venture and are usually hesitant to finance them. So restaurant owners have to search for financing elsewhere. They may need to raise their own capital to start up and they will need a very good idea to do so. With so many restaurants and fast food chains customers have their range of choices. Your restaurant will have to offer something different, be in the right location and have a menu that is ever-changing and current.
There are many restaurants that fail and it could be due to a number of reasons, not just the economy. It could fail due to bad planning, faulty processes, incorrect catering equipment, bad management, lack of experience, an unpassionate chef or lack lustre staff. When one of these factors fall short, you could fix it but if you have a combination of problems, and don’t fix it quickly, it spells a recipe for disaster.
On the other hand, a good idea can succeed in a receding economy. I’m sure if you think about it you will notice that there are restaurants that have opened within the past five years and are doing well. Consider what they are doing that is keeping their doors open. They offer something different that is not found on other restaurant menus and their prices are reasonable. They create an ambience in their restaurant that makes people want to spend more time there. Their customer service is top notch and the staff is happy to be there. They invest in quality and time saving catering equipment. The quality of meals is consistent and delicious, plus they give portion sizes that exceed expectation. They market themselves non-stop and offer specials so that they are always in the memory of the customer.
A good idea will not ensure success; it is how you implement it that will make the difference.