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Why do restaurants lose money and close down after working for a period of time?

1. Misestimate the market and their own abilities

Many catering businesses that fail to start their own businesses have a wrong cognition: they think that the catering industry is just needed by people's livelihood, with a large market scale and low threshold. Just find a good facade and a chef who can cook. Dry catering can make a lot of money!

It is this misconception that directly leads to a large number of entrepreneurs pouring into the catering industry, thus intensifying market competition. In addition, their misjudgment of the market and their own ability is also the root cause of their own business failure.

2. The operational capacity is about 1

A successful catering enterprise must have strong operational capacity. Otherwise, no matter how loud your signboard is, you will end up dead.

For example, some star restaurants have brought a lot of popularity to restaurants with the aura of stars. But in the end, they closed down because of various problems. The most common food problems are: Bao Beier restaurants use "cow blood" as "duck blood", and there are also "a dream in a dream" in Huang Lei, Morphy, and Morphy noodles, which are simple in materials and have poor taste. The taste did not surprise consumers, and the service was also lacking.

Today's catering industry is very professional, which requires very high ability of entrepreneurs. As a qualified catering entrepreneur, you must understand: site selection, market, consumer psychology, design, supply chain, products, employee management, marketing and so on.

3. Rushing for success, putting the cart before the horse

Many catering entrepreneurs will say at the beginning of opening a store: I will open XXX chain stores nationwide in the future, and our project will be listed in the future.

it's not a bad thing to have such ambitions. But before that, please practice your internal skills first. If listing is regarded as the only entrepreneurial ideal, it is basically doomed to failure, because the mentality is not right in the first place. When the desire to go public is higher than the desire to do a good job in the industry, the energy and focus of the work is not on the content.

There are also many restaurant operators who want to make more money quickly when their ability is not enough. Blindly expand the store and open to join. As a result, it accelerated its own death.

In fact, there are many factors to be considered in the expansion of catering brands, and the next step will be considered only after full preparations are made. The brand needs to be well prepared in terms of talent reserve, product standardization and supply chain management, so that the store can expand steadily, and the rush for success is likely to be destroyed.

4. Lack of innovation leads to complacency

This is the era of social networks. Both Weibo and WeChat friends circle have more than hundreds of millions to billions of active users, which not only gave birth to new species such as online celebrity food and online celebrity restaurant, but also completely changed the logic of young people choosing shops and restaurants, and of course changed the business thinking of restaurant operators.

if you want to catch young consumers, you must keep pace with the times. Explore new consumption scenes, new dining methods and new dishes. However, many "time-honored" catering brands are not aware of this and lack innovation, so they are complacent. Eventually eliminated by the market.

For example, the closure of Little Swan, an old hot pot restaurant, is not only due to the fierce competition in the hot pot market, but also due to sticking to the rules.

5, blind imitation, lack of their own business philosophy

As a successful catering enterprise, operators must have business philosophy suitable for the development of their own enterprises.

an embarrassing fact in the catering industry now is that many operators mechanically copy the business model or business varieties of successful enterprises, ignore the internal and external environment and specific conditions of our store, and make subjective positioning, resulting in the disconnection between supply and demand, which makes the catering enterprises' business go from bad to worse.

6. Food safety issues

Food safety is the most important issue in restaurant management. It is also an untouchable high-voltage line, which will die at the touch.

In today's society, the concept of health is deeply rooted in people's hearts. Consumers pay more attention to whether the restaurant ingredients are fresh and clean. Once food safety problems occur in catering brands, they will lose the trust of consumers and damage the image of stores.

In p>2119, 8,219 restaurants closed down every day. What did they do wrong?