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hospitalitytrainingpartnership.com
*Statistics from „Why Restaurants fail‟ –
Parsa et al 2005

Restaurant failure by year of
operation
26.16%
19.23%

14.35%

YEAR 1

YEAR 2

YEAR 3

hospitalitytrainingpartnership.com
*Statistics from „Why Restaurants fail‟ –
Parsa et al 2005

Independent and Chain failure
rate
27.51%
24.06%
19.62% 18.62%
14.23%

YEAR 1

YEAR 2
Independent

14.54%

YEAR 3
Chain

hospitalitytrainingpartnership.com
• Limited resources
• Unprepared for rapid growth
• The greater economies of scale
afforded to chains makes them more
secure
• Banks are less generous to smaller
businesses
hospitalitytrainingpartnership.com
• Restaurant clusters can make competing
effectively difficult
• • concept
Inability to differentiate

• “The most important criteria for success is
management – they direct the
marketing, quality and decide when to
adapt”
hospitalitytrainingpartnership.com
hospitalitytrainingpartnership.com
What do successful restaurants do/have?

• A successful restaurant requires focus
on a clear concept that drives all
activity
• This is more important than strategy –
as long as the concept holds the
strategy can be fluid
• The concept needs to go beyond the
food product and include both
customer and employee relations
hospitalitytrainingpartnership.com
What do successful restaurants do/have?

• Running a restaurant is a highcommitment and high energy job

• Pro-actively make time for family
• Successful restaurateurs don‟t
let themselves burn out
hospitalitytrainingpartnership.com
What do successful restaurants do/have?

• Understand all key elements of the
business
• Implement and monitor
systemisation of key tasks

• Understand and respond to the market
conditions
hospitalitytrainingpartnership.com
What do successful restaurants do/have?

• A bad location and other external
factors can be overcome
• Low quality food cannot

• Customer experience is vital

The answer is yes. What‟s the question?
hospitalitytrainingpartnership.com
What do successful restaurants do/have?

Relationship marketing
• Be involved in your local community
• Build relationships with your customers
• Don‟t waste money on large advertising
campaigns
• Word of mouth wins
hospitalitytrainingpartnership.com
What do successful restaurants do/have?

• Training
• Diversity
• Personality

hospitalitytrainingpartnership.com
What do successful restaurants do/have?

• High quality training programmes
including managers, chefs and front
of house
• Staff understand

hospitalitytrainingpartnership.com
What do successful restaurants do/have?

• A team that reflects your community

• Staff that work well together as a
team
• A team that complements each
others strengths and weaknesses
hospitalitytrainingpartnership.com
hospitalitytrainingpartnership.com
Pitfalls successful restaurants avoid

• Many profitable restaurants
fail, because they run out of cash
• A clear plan needs to be in place
for when growth arrives

• This is particularly important for new
restaurants
hospitalitytrainingpartnership.com
Pitfalls successful restaurants avoid

• Failed restaurants often have
extensive strategies in place

• Aren‟t paying attention to
what‟s happening around
them
• To be successful you must
be adaptable and respond
to your surroundings
hospitalitytrainingpartnership.com
Pitfalls successful restaurants avoid

• All members of the team need
training, including:

• Staff
• Managers
and

hospitalitytrainingpartnership.com

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How to make my restaurant successful

  • 2. *Statistics from „Why Restaurants fail‟ – Parsa et al 2005 Restaurant failure by year of operation 26.16% 19.23% 14.35% YEAR 1 YEAR 2 YEAR 3 hospitalitytrainingpartnership.com
  • 3. *Statistics from „Why Restaurants fail‟ – Parsa et al 2005 Independent and Chain failure rate 27.51% 24.06% 19.62% 18.62% 14.23% YEAR 1 YEAR 2 Independent 14.54% YEAR 3 Chain hospitalitytrainingpartnership.com
  • 4. • Limited resources • Unprepared for rapid growth • The greater economies of scale afforded to chains makes them more secure • Banks are less generous to smaller businesses hospitalitytrainingpartnership.com
  • 5. • Restaurant clusters can make competing effectively difficult • • concept Inability to differentiate • “The most important criteria for success is management – they direct the marketing, quality and decide when to adapt” hospitalitytrainingpartnership.com
  • 7. What do successful restaurants do/have? • A successful restaurant requires focus on a clear concept that drives all activity • This is more important than strategy – as long as the concept holds the strategy can be fluid • The concept needs to go beyond the food product and include both customer and employee relations hospitalitytrainingpartnership.com
  • 8. What do successful restaurants do/have? • Running a restaurant is a highcommitment and high energy job • Pro-actively make time for family • Successful restaurateurs don‟t let themselves burn out hospitalitytrainingpartnership.com
  • 9. What do successful restaurants do/have? • Understand all key elements of the business • Implement and monitor systemisation of key tasks • Understand and respond to the market conditions hospitalitytrainingpartnership.com
  • 10. What do successful restaurants do/have? • A bad location and other external factors can be overcome • Low quality food cannot • Customer experience is vital The answer is yes. What‟s the question? hospitalitytrainingpartnership.com
  • 11. What do successful restaurants do/have? Relationship marketing • Be involved in your local community • Build relationships with your customers • Don‟t waste money on large advertising campaigns • Word of mouth wins hospitalitytrainingpartnership.com
  • 12. What do successful restaurants do/have? • Training • Diversity • Personality hospitalitytrainingpartnership.com
  • 13. What do successful restaurants do/have? • High quality training programmes including managers, chefs and front of house • Staff understand hospitalitytrainingpartnership.com
  • 14. What do successful restaurants do/have? • A team that reflects your community • Staff that work well together as a team • A team that complements each others strengths and weaknesses hospitalitytrainingpartnership.com
  • 16. Pitfalls successful restaurants avoid • Many profitable restaurants fail, because they run out of cash • A clear plan needs to be in place for when growth arrives • This is particularly important for new restaurants hospitalitytrainingpartnership.com
  • 17. Pitfalls successful restaurants avoid • Failed restaurants often have extensive strategies in place • Aren‟t paying attention to what‟s happening around them • To be successful you must be adaptable and respond to your surroundings hospitalitytrainingpartnership.com
  • 18. Pitfalls successful restaurants avoid • All members of the team need training, including: • Staff • Managers and hospitalitytrainingpartnership.com