| The statistics for restaurant failures paint a very | | | | they expect. The simple example is the person |
| dark picture and they should. Over 60% of new | | | | who opened a Sushi Restaurant in Leon, West |
| restaurants will not see their third anniversary and | | | | Virginia. Not a very good idea! You can say it a |
| even fewer will make it five years. | | | | thousand ways, but the trite phrase "location, |
| Running a restaurant is much more demanding | | | | location, location" still says it all. |
| than most people ever see in their dreams. | | | | If you think you can circumvent the key |
| However, over the years, I have found some | | | | elements above by buying an existing restaurant |
| elements that almost every restaurant that is | | | | or franchise, they have almost the same failure |
| around on their 5th birthday has implemented. | | | | rate. There are no guarantees. |
| These startegies work. | | | | One of the other keys to success is the |
| Here is a list to help you start, buy or run a | | | | commitment of the owner/manager to learn, |
| better restaurant; | | | | read and master strategies that retail existing |
| 1) You must have a business plan. It can be one | | | | customers and constantly cultivate new ones. |
| page or a thousand pages, but it has to give clear | | | | Knowledge and a passion to keep experimenting |
| direction for your concept. The two most | | | | with every aspect of the customer's experience. |
| important parts of your plan is a cash flow | | | | Of the most common falacies of new |
| projection and a marketing plan. | | | | restaurateurs is the idea that if you serve "good" |
| 2) Your restaurant marketing plan must address | | | | food, that is all you need. The fact is few |
| the three parts of marketing; | | | | restaurants serve bad food. Many serve the |
| Communicating your message to your customer | | | | wrong food to the wrong demographic. Research |
| prospect. | | | | your potential area for a customer profile before |
| Selling your product to the guest/prospect. | | | | assuming the business radius will support your |
| Delivery of the product and meeting the | | | | concept. Convenience and short travel times |
| customer's expectations. | | | | affect the customer's willingness to return. |
| Most restaurateurs believe marketing is | | | | Much more on these topics can be found on a |
| advertising. That is not the case. | | | | new website called Restaurant In The Weeds. |
| 3) You must have the financial resources to | | | | The site has restaurant owners offering advice to |
| survive. There are a lot of sad stories out there | | | | other restaurant managers and owners. Another |
| about very good restaurants who just ran out of | | | | good site is the blog called On a Wait. Good ideas |
| money - even though they were profitable! If you | | | | from a wide range of knowledeable successful |
| don't understand how that can happen, you better | | | | business owners may tip the scales in your quest |
| learn about restaurant cash flow real fast. | | | | for survival in, arguably, the toughest business in |
| 4) You must understand your customer and what | | | | the world! |