Starting a Restaurant Business: Pitfalls to Avoid

Owning a restaurant is a dream business for some people. In addition to being financially rewarding, it is one of those businesses with limitless potential. While starting a restaurant business can be challenging, a proper understanding of these factors will empower aspiring restaurant owners to avoid common mistakes and unnecessary pitfalls. 


Failure to have a ready startup budget: This is the number one pitfall of aspiring restaurant owners. There is an erroneous impression that starting a restaurant business is not capital-intensive. This notion could not be further from the truth. In addition to being capital intensive, it is necessary to have a comprehensive cost analysis when creating the budget. As with most hospitality businesses, several factors come together to make the restaurant business a stunning success. The cost implication of these factors needs to be carefully articulated in the budget with sufficient resources for potential miscellaneous expenses. Having ready capital is the safest and most effective approach in this regard. Typically the budget should cover expenses like rent, equipment, supplies, staffing, and marketing. 



Disregarding Market Research: The restaurant business is typically competitive. Similarly, customer preferences and expectations differ from one environment to the other. Market research is critical to the success of a restaurant business. Understanding the opportunities and threats can help a restaurant position itself advantageously in the market. Market research empowers the aspiring restaurant owner to make calculated decisions on the location, brand strategy, menu offerings, and brand position. Securing the help of veteran consultants is a step in the right direction. The Blue Mass Company can help with this process.  




Disregarding industry standards and regulations: The restaurant business is quite sensitive for obvious reasons. Consequently, there is a need to meet industry standards on health and safety. Ensuring that the environment is hygienic and that the highest health and safety measures are implemented, is a winning formula. In addition to avoiding sanctions from regulatory agencies, maintaining health and safety standards helps build trust and popularity for a restaurant brand.    


Neglecting the importance: In the way of quantity and quality, it is important to get staffing right. Having the required number of staff for the smooth and uninterrupted operations of the restaurant is critical. Additionally, putting qualified staff in the right roles and offices to ensure effective supervision and management of daily operations is important as well. Having adequate numbers and quality of staff to meet peak hours, holidays, and special events is crucial to the sustainability and profitability of the business.





Failure to create a feedback system: As with most businesses in the hospitality industry, having a reliable feedback system helps the business evaluate its performance and make relevant adjustments to serve customers better. It is expected that a restaurant business has multiple feedback systems not only to gauge performance but to collate relevant recommendations. Fully customizable forms, text messaging, emails, and social media are some of the most effective feedback systems. Effective feedback systems provide the framework for implementing change.  


Failure to implement change: In general, the hospitality industry is constantly changing and the restaurant business is no exception. The capacity to introduce and integrate changes seamlessly is vital to the sustainability and profitability of the restaurant business. You want to make sure you are adjusting to innovations, trends, customer preferences, market conditions, competition, and much more while maintaining overall strategy and company objectives. 


Starting a restaurant business can be adventurous and engaging. However, avoiding these pitfalls could be decisive in whether or not a restaurant business thrives or dies.

Copyright © 2022. The Bluemass Company

Copyright © 2022. The Bluemass Company

Partner for

Get Your Weekly HOSPITALITY DosE

Subscribe to TheBlueMass and recieve notifications on the juiciest updates and resources in hospitality