The prospect of owning and operating a successful restaurant is a dream come true for many an entrepreneur, but unfortunately, it may feel as distant as far-off dream those who are actually struggling. You’ve heard the varying (and often scary) statistics – that a large percentage of restaurants fail within their first year of opening. While the actual numbers have been contested, the truth still stands that operating a profitable restaurant is ultimately a challenging feat.
A restaurant can emerge from a vision but to become truly successful, the restaurant business plan must be thoughtfully executed. So the actual simple answer to the burning question, “why do most restaurants fail?” is simply because the ones who do fail to create a solid business plan. Like the saying goes, “fail to plan, plan to fail.”
Every aspect and every detail must be closely studied and examined. Your goal is to learn if your vision is feasible and that requires analyzing your menu and restaurant operations, competition, location, target market, supply chain, financial model, risk evaluation, and management. With this plan, you must then create a real strategy for success.
You must be able to confidently and clearly answer questions such us:
– What are my core values?
– What will I be better at then anyone else in the space?
– What are the consumer needs, wants and expectations?
– Who is the core customer?
– What demographics will I need to be successful?
– What does the competitive landscape look like?
– How am I going to build brand awareness?
– What type of budget with this vision require?
– Where am I going to find funding?
– Does my financial model make realistic sense?
While the planning may be daunting, it must be done. You don’t have to do it alone, however. Synergy helps restaurant entrepreneurs bring their visions of success to life with detailed restaurant business plans. If you have any questions, please contact Synergy at 888-861-9212.