Reasons why restaurants fail and how to avoid them

by Carter Toni

Do you have any plans of starting a restaurant? As per the report by CNBC, 60% of new restaurants shut down within the first year. Especially in these times of Covid-19, restaurants are going through a sharp fall in sales. In this scenario, let’s look at the major reasons that have led   to failure of restaurants. We will also discuss how you can tackle these issues and run your venture successfully.

Top 3 reasons for failure of restaurants

Lack of marketing –

Assume that you have launched your restaurant. You provide amazing food, excellent service and a great ambience. However, what’s the use if you cannot market your brand effectively? That’s where Inresto, India’s leading restaurant marketing solutions platform, comes to your aid.

Restaurant website creation was never so easy. Your customers can now order food online from the comfort of their home. Develop engaging social media posts that boost your publicity. With Inresto, it’s pretty easy to identify your target customers. Come up with customized marketing campaigns for each segment. Also, promote special offers and events with the help of newspaper ads.

Pilferage and thefts –

As per the report by National Restaurant Association, on an average internal and external thefts at restaurants amount to nearly 4% of the total food costs. Shocking, right? However, with supply chain management software Inresto SCM, be alerted whenever there is any attempt to rob your stock. Also, track your inventory levels live, 24/7 from any location.

Poor employee management –

Some of your waiters may be quick enough to serve the food on time. However, there may be others who are laggards. It ultimately leads to customer complaints. Do you have a system to track employee performance? A restaurant POS system provides you with table turnaround time, feedback on employee behavior etc. Hence, reward top performers and deliver training sessions for inefficient staffs.

Parting Words

As a young entrepreneur, the above tips will be handy for you while managing the restaurant. In addition to attracting prospective customers, it will also help deliver a seamless customer experience.

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