Challenges Faced In Starting Up A Restaurant

Challenges Faced In Starting Up A Restaurant

Restaurants are very popular with the general public as they are places where people can go with family and friends. These restaurants not only cater to culinary tastes but also provide a beautiful ambience for people to spend a few enjoyable hours.

Challenges Faced In Starting Up A Restaurant

However setting up a restaurant can be a very daunting task. But once it is set up with the all the proper ammunitions in place like interior decoration, attractive restaurant uniforms etc., it starts firing almost from day one. Thus profits come pouring in sooner from restaurants than from some other form of entrepreneurship. It is also very easy to fail in this business and incur losses if certain points are not taken care off like:

  • Location: This plays a very important part in the success and failure of a restaurant. A restaurant will never draw customers if
  • It is located in a difficult to reach location,
  • A fine dining restaurant is opened up in a middle class locality or
  • Local people around the location are not conducive to the idea of a restaurant opening in their locality.
  • Hence in case of unavailability of a good location it is best to either
  • Delay the plans of opening a restaurant till a good location is found or
  • Find a small outlet to start off from and then expanding the business to a new bigger and better location.
  • Capital: A restaurant should always be set-up within the limits of the capital one has. In fact budgeting needs to be done in such a way that incidentals like ordering restaurant uniforms and other unexpected expenditures are taken into account. Generally the capital is increased by 20% to cover all these expenses.
  • Complicated government legislatures: Anything to do with the local governments has to be dealt with and understood before starting a restaurant so that they do not create issues later on.
  • Choosing the staff: It is always better to choose staff with experience for an inexperienced staff, especially a manager, is bound to create problems unknowingly which might result in bad publicity for the restaurant set up.
  • Getting customers: This is the trickiest part of the deal but can also be dealt with easily by
  • Promoting the restaurant properly,
  • Calling favours from friends and family,
  • Organising events to create an interest etc.

Once all these are in place, a restaurant is bound to become a success. In fact statistics say that about 70% of all restaurants set up, gain success in the first year itself.


Leave a Reply

Your email address will not be published. Required fields are marked *