ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -According to research, 60% of restaurants fail in their first year. And not more than 80% survive past their next five years. With such a massive amount of investment going in to get the business up and running, watching it fail is heartbreaking.

Detailed explanation-2: -The restaurant failure rate is difficult to track nationwide, but the National Restaurant Association estimates a 30% failure rate in the restaurant industry. In other words, one in three restaurants won’t survive their first year.

Detailed explanation-3: -A restaurant venture isn’t for the faint-hearted, as more than half of new restaurants fail within the first year, and a little more than that close down before they’ve reached five years of business.

Detailed explanation-4: -A study from Cornell’s school of hospitality on restaurant failure rates found that 30% of all restaurants go out of business within their first year. When it comes to independently-owned restaurants (versus corporate-owned chains), the odds of making it past the first year of business are only 10%.

Detailed explanation-5: -Lack of vision. Not enough industry experience. Not enough operating capital. Poor location. Not knowing the numbers. Ineffective menu pricing and planning. Failing to adapt. Being too trendy. More items •15-Oct-2019