Ending the Restaurant Failure Myth

For many years restaurants have gotten a badBusiness Administration about 44 percent of small
rap when it comes to perceived risk. Businessbusinesses are still operating after four years.
experts and people in general are prone to citingSimilarly, according to a 2007 study conducted at
"The High Failure Rate" of restaurants as a reasonOhio State University, 41 percent of restaurants
not to invest in or start restaurants. Most of uswere still operating three years after launch.
are so use to hearing such talk we simply acceptAs someone who has owned and operated a
it as truth. If we were to ask those who claimrestaurant in a major city, the enjoyment and
that restaurants have a higher failure rate thansocial aspects of being a restaurant owner fall
other small businesses to provide a referencesjust below rock star, local celebrity, and city
for their claim, they couldn't. There aren't anymayor. A popular restaurant allows the owner to
credible research studies to support this myth.be at the center of community events. More
I recently published an article outlining how anyoneimportantly, if restaurant owners avoids the trap
can dramatically improve their odds of success atof trying to "Do-it-All" themselves, they can also
starting a restaurant business. The same day thatenjoy a well balanced lifestyle.
the article was published a reader left a greatThe classic nightmare restaurant ownership
comment, which not surprisingly mentioned thescenario of long frantic days is the same for any
high failure rate of restaurants. For the benefit ofentrepreneur, who does not graduates from
aspiring restaurateurs, restaurant investors, andworking in his business to working on his business.
the restaurant industry, it's time to set the recordMoreover, if restaurants were failing at the
straight.staggering 90% rate that some quote, it is
There is no meaningful difference in the failureunlikely that the restaurant industry would have
rate of restaurant start-ups and small businessbeen growing at double digit rates prior to the
start-ups in general. According to the Smallcurrent recession.