Statistics show that more than 60% of the start-up restaurants fail in their first year of operation, while 80% of restaurants only last for five years. Experienced restaurateurs know that stable funding play an important part in keeping their business afloat, which is why business owners apply for restaurant business loans.
Restaurants fail for many reasons. For example, lack of information about the industry and still diving into will just lead you to its ultimate doom. Most restaurant owners don’t usually see what they’re doing wrong until it’s too late.
If you want your restaurant to survive in this competitive industry, you’d have to become a smart entrepreneur and think two steps ahead. One of the best ways to keep your restaurant from failing is to learn from the most common mistakes amateur restaurateurs make.
1. Poor Location
For restaurant businesses,location is one of the most important aspects to look into. If you choose a location based on the rent, then you’re doing it wrong. If you want your restaurant to climb up to the top, you’ll want to place it in a strategic place where people can actually see it. The nearer you are to foot traffic, the more customers you’ll have.
2. Bad Customer Experience
No matter what business you run, people will remember you through the quality of service you offer. Customer feedback is important especially when you’re in the food industry. Ignoring your customers’ reviews and feedbacks about your food and service will only hurt your business.
No matter how careful you are, there will be customers who will bedissatisfied with your service. But an experienced business owners will use a bad review to their advantage. You can show people that you handle complaints seriously and that you hear them out.
3. Poor Staff Training
Inexperienced restaurateurs often make the mistake of hiring the wrong staff. But even when the applicants come in with experience, business owners should still invest in their training to make them a better asset to the company.
4. Not Being Involved in Managing the Restaurant
If you think that all you need to do is to invest money to keep your restaurant running, you’re just leading your business down an empty road. Smart entrepreneurs know better than relying on their restaurant managers to run their business operations.
It’s imperative for business owners to keep a close eye on what’s happening on their restaurants especially on the financial side of things. New technologies have given business owners a chance to keep a close eye on their restaurant business even when they’re not physically present so they might want to invest in these.
5. Neglecting Marketing Strategies
Even the most established restaurants need a solid marketing strategy to stay ahead of their competition. This is even more important for small businesses that are just starting to build their brand. While it may cost you to market your business, it will definitely pay off in the end and lead your business to success.
Choosing the Best Restaurant Business Loans For You
Starting a restaurant business requires you to do a lot of strategic planning to keep it going. Keeping these tips in mind as you manage your restaurant will definitely save you from suffering the consequences as you go on. If you want to learn the process of getting a restaurant business loan, the experts at SMB compass might be able to help you arrive at the best decision.