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Why do restaurants lose money and close down after working for a while?

There are many friends and family members who cook food and beverage. Some people succeed, others fail, and laymen are envious when they see that they have made money in food and beverage. In fact, they don't know the hardships and the risks and challenges that practitioners need to bear.

that was three years ago, a big brother took a group of people who were working, chose a newly-built large shopping mall that was preparing to attract investment to open a restaurant, paid to join a braised pot brand in Shandong, and all investors should still be at work. Then the chef asked a relative of an investor to study, and the on-site management was also a relative of an investor. I was only responsible for managing the accounts, and I started the renovation and procurement in a hurry.

combined with the opening of the mall in the first month of opening, it looks ok. Although it is 51% off, it is basically the same in the first month. Then, with the start of normal operation, the business in the back became worse and worse. Although I also participated in various marketing activities in shopping malls and used the Internet and media tools for publicity, I still couldn't make ends meet every month, so it was difficult to achieve operational balance. This stage took almost half a year.

The original 1.2 million yuan was almost used up. Everyone sat down and thought about what the problem was. There were several reasons: the dishes they joined were too heavy for local people, the taste was single and boring, and the mall was not crowded.

So, besides continuing to pay by shares, we began to make internal rectification for the products. After half a year, the dishes were changed according to the local tastes. However, due to the chef's lack of innovation and ability, the expected results were not achieved. In order to save costs, the staff and raw materials began to be tightened, and the results became worse and worse. Coupled with the appearance of the off-season, the losses were even more severe. So, half a year passed, and even more.

in the course of such a year, before the opening of the brand, we sent people to the headquarters to study, but without any help, they were often urging whether to purchase raw materials, and they were speechless. The management didn't even come to the store once.

We lost more than 1 million yuan in one year. Everyone wondered whether to stop the loss, but Big Brother was unwilling. So he found a local chef, prepared to give up joining and completely change the local cuisine. Big Brother invested almost 511,111 yuan to renovate the store, try various dishes and research, and reopened after the Chinese New Year. At first, the response to new dishes was good. After a long time, various problems began to appear in management.

This chef can study dishes, but he is full of Jianghu spirit. He recruited all his relatives and friends into the store, and then he used the Jianghu eldest brother's style in management. The team complained a lot, and there were big loopholes in purchasing, so he didn't let others supervise him. In this way, he lasted for another half a year, and the business data was even worse.

I learned from a painful experience and finally decided to close the store. However, because the contract signed with the mall was five years, I didn't mean to close it. Quitting halfway was considered a breach of contract, and various on-site recovery and liquidated damages were required. After various complaints, I finally closed the store at a cost of more than 111,111 yuan. This restaurant has lost about 2.5 million yuan from the beginning.

This is my real entrepreneurial experience of restaurants, only tears. Through this experience, I sum up the reasons why I think restaurants closed down at a loss.

I'm not ready to open a store. Many times, people who open restaurants just look at other people's stores' good business, thinking that there should be no problem in opening one. In fact, there are many factors behind a store with good business, which is not so simple. This is the reason why many restaurants are booming and miserable, that is, they are not really ready to open a store. What is particularly taboo is that opening a store depends on passion.

so what preparations do you need to make to open a store? At present, there are two basic modes of opening a restaurant. One is that you like catering, and you are willing to study and study, start your own brand or catering category, and do your own business. The other is to join existing brands, and brands provide products and raw materials, decoration design and other outputs, and invest their own funds for joining, decoration and daily operation.

To prepare for opening a store, it is not to say that it is good to choose one, but to really do a good job of investigating the market, knowing the products, understanding the people flow and demand, choosing the comparison place, sorting out the cost estimate and so on according to the way you choose. There are some systematic books that can tell you how to investigate and understand the operating data of the store. Learning is very important, and applying what you have learned is more important.

You can find these books when searching, so you can recommend some books to read (When the catering business meets creativity, Complete Restaurant, Seven Basic Skills of Starting a Catering Business, Starting from scratch: A Practical Manual for the Whole Process of Opening a Restaurant). Only by combining book knowledge with specific venue conditions and conditions can you at least have a good idea of the whole project.

Without a good partner, many times, people who want to do catering often have some money, but they don't have any catering skills and experience. At this time, they need to find a partner who knows catering, and even let him manage and operate the whole store. At this time, this person's character and level are very important.

Because there are a lot of holes in the operation of catering, whether it is funds, procurement, personnel management, etc. If you meet an unreliable partner and the technology is in his hand, and you can't control it as a result, then the best thing at this time is to break up, otherwise there will be all kinds of situations that will wipe your ass. People's greed is a bottomless pit, and in the end you may not know how to lose.

We are not quick enough to respond to the problems, wait passively, lack systematic planning and layout in the whole marketing and service, and are unwilling to spend the money. As a result, the experience in the store is hard to change, and as a result, the more we lose. For large and medium-sized restaurants, services, marketing, etc. should be planned before opening the store, and related expenses should be included in the early investment preparation. Many bosses are reluctant to spend money on promotion after opening the store, thinking about which day the number of people in the place will increase, but for large and medium-sized restaurants, the daily cost is being spent, so how can you be sure that your store can live to the time when the traffic increases? Therefore, to be a medium-sized and large-sized restaurant, we must plan the marketing expenses, systematically promote and drain them, and find the right opportunity to hype up the store's popularity. However, there is a premise for planning the marketing expenses, that is, your products are in line with market demand and even competitive in the market. If the taste or product is not suitable for the local area, then close the store early to stop the loss. Of course, for small workshop-style restaurants, it is not necessary to invest too much in marketing, especially for large and medium-sized restaurants.

Well, the above are the reasons that Xiaoguo summed up that restaurants are easy to close down, and also the experience that Xiaoguo summed up in the failure of starting a business. Let me repeat it here. If you are not a person who likes delicious food and can't go down to study and act, I suggest you don't cook. Unless you really have a lot of money and can invite very professional people to help you cook, it is really easy to lose money and make you doubt your life. Doing business is simple, but it is not easy to do a good job, and it is even more difficult to do a long-term profitable business.