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Why do restaurants fail?

Have you ever wondered why there are hundreds of new restaurants popping up every month but only a few of them manage to escape failure? A survey conducted by Economic times states that more than 50% of restaurants fail in the first year of establishment. Let us look at the reasons behind such an alarming rate of failures.



  1. Poor Management: First-time restaurateurs are usually inexperienced and do not properly plan their operations and financials. Being over-optimistic can also slowly lead to failure.
  2. Improper location: Choosing a suitable and profitable location is vital for restaurant success. Usually, owners don’t take expert advice while fixing a location.
  3. Lack of marketing: This is the most overlooked factor. It has been proven that customers can be influenced by good advertising and marketing, not only in the food sector but almost all sectors. Investing some money into marketing is essential. Read more about how marketing can boost restaurant sales at https://medium.com/selectdine/how-marketing-can-help-in-promoting-franchise-business-6a83505e049c.
  4. Poor Customer service: I can’t stress on this point enough! Customers are why restaurants exist, and providing them with good service is the basic duty of the restaurant.
  5. No owner’s involvement: Owner’s who leave the restaurants with managers or staff are the ones whose restaurants face failure and start plummeting in the initial months itself.
  6. Staff not trained: Staff in restaurants need to know what exactly their responsibility is and should perform skillfully. Untrained or ill-trained staff are equivalent to a restaurant without staff.
Avoid failing by taking help from the right people. SelectDine is your best friend on your journey to a successful restaurant!

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