Date: 29/08/2023


Tel: +86-20-36933270 / 36933272 / 36933273 / 36853567

MP & WeChat & WhatsApp: +86-13926103331 (Ms.Lisa Liang)

Restaurant Business Failure Experience Sharing

Catering industry insiders when it comes to catering operations often focus on the catering research results that have been obtained, that is, the successful experience it has achieved, while treating business mismanagement or failure lack of systematic research and summary. We should pay more attention to the point that failure is a common phenomenon in business management, summarize the failure and learn lessons from it can not only make the later avoid crashing again in these problems, but also sound the alarm for the successful restaurant operators, to escort the expansion of the restaurant scale in the future.

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1, The Perator of The Restaurant Industry’s Business Status Misjudged

The success of the catering business depends largely on whether the operator’s decisions are correct, catering business decisions include judgment and analysis of the market, prices, finance, etc., the development and implementation of important regulations and procedures of the catering business, etc., amateur operators or the wrong understanding of the market, finance, etc. is likely to directly lead to operational fiasco. When a catering business makes a major decision, the catering business operator should carefully weigh the pros and cons, figure out his business positioning, and make the decision of the catering business according to the specific situation, or hire a consultant or ask experts for advice. Back-of-house staff should have professional catering training, and strengthen coordination between back-of-house and front-of-house. Do not open blindly and change operators or chefs frequently, resulting in high input and low output.


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 2, Improper Site Selection

Fast food operation of the typical restaurant McDonald’s has said that the core secret of its business success has three conditions: “site selection, site selection, or site selection”, it is not difficult to see the impact of the restaurant or hotel site on its success or failure. A successful site should look at the big picture, focusing on the use of the macro environment, a full investigation to understand the existing restaurant business facilities in the area or the business characteristics of competitors, clear consumer demand around the area, while selecting a convenient transportation area before you can. If you do not do a full market survey of the surrounding environment before opening, and blindly choose a location, you will not be able to meet the needs of the surrounding consumers after opening, or even encounter complaints from the surrounding residents, or fail to attract guests because of inconvenient traffic, which will make the restaurant business suffer great losses.


Restaurant site selection needs to consider a variety of factors, including the nature of the restaurant business, grade, size and structure, peer competition, population, traffic and other aspects. Before the restaurant business opens, it is necessary to investigate the specific operation of the restaurant industry in the area, analyze the customer level and consumption capacity, and draw up reasonable menu content. In addition, the operator should investigate the economic level of nearby residents and the specific situation of the mobile population, and choose a popular place for the best, such as the traffic hub.

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3, Blind imitation, Lack of Their Own Unique Business Management Concept

As a successful catering business, the operator must have a business philosophy suitable for the development of their own business. And now there is a rather embarrassing fact in the restaurant industry is that there are many operators in the business process to copy the business model or business varieties of successful enterprises, ignoring the store’s internal and external environment and the specific situation, subjective positioning, resulting in a disconnect between supply and demand, so that the restaurant business is deteriorating. Each enterprise should have its own unique business model, and business operators should pay full attention to the specific situation of the enterprise when learning from foreign experience, and should not copy the business model or business varieties of other enterprises on their own heads.


In the planning of the enterprise, we should fully absorb the beneficial experience that helps the development of the company and quote it flexibly, and at the same time, we should fully consider the range of consumer groups, the scale of the hotel and the products operated should meet the positioning requirements of the catering enterprise, highlight the characteristics of the catering enterprise operation and promote the perfection of the management concept, so as to meet the needs of the guests and provide a long-term guarantee for the development of the catering enterprise.




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