If you don’t want to work from 5 to 9, then start a business. But basically there are few successes and many failures. Starting a catering business has changed from a low threshold and low cost in the beginning to a high level of difficulty and huge losses. Will you continue to make these entrepreneurial mistakes?

The restaurant with discounts, price reductions and taste changes still cannot escape the fate of transfer

Lao Wang has worked hard at the company for more than ten years. In the past few years, the company’s efficiency has not been high. Seeing that everyone around him has Go start a business. I didn't want to get such a dead salary anymore, so I resigned and opened a small restaurant.

But Lao Wang suffered all the losses from store location selection to opening and operation. First, I rented a store. Because I couldn't find a suitable small store, I just rented a store that was twice the size of the demand. As a result, half of the area was idle every month.

In addition, Lao Wang’s store chose to open before the National Day. Business is very good this month because of good preparations and promotions. But after the holidays, the passenger flow decreased, and the business returned to before liberation. Later, we had no choice but to offer discounts, promotions, and food delivery, but there were not many repeat customers. During the period, Lao Wang and the chef changed the menu, and then made some adjustments to the taste of the dishes based on feedback from some customers. As a result, there were fewer people. When asked later, the customer said that the taste was different from the previous one and that it had become salty. It turned out that some customers' feedback was too weak, so Lao Wang asked the chef to make adjustments, but the result was that more customers were disappointed.

Finally, after adjustments were made, customers no longer bought it. After opening the store, after struggling to support it for more than a year, Lao Wang had to transfer the store.

Lao Wang’s business failed due to many problems. There were more stores than demand and the pressure on rent was objective. However, in the business process, it is taboo to cut prices and discounts when business is not good, take the opinions of some customers as the mainstream, and change the taste of dishes at will.

Reflect on 8 lessons for catering entrepreneurship that will make you lose everything

Currently, it is a great time to start a business. However, more than 95% of entrepreneurs end in failure. There are many difficulties and dangers on the road to starting a business, so you need to reflect frequently to avoid making mistakes. The following reflections on catering entrepreneurship are worth thinking about:

When opening a restaurant, knowing little about financial management is more terrifying than knowing nothing at all.

There is a "golden rule" in financial management: short-term bank borrowings cannot be used for long-term investment in enterprises. Use own capital and long-term liabilities as fixed asset investment and long-term investment as much as possible. Most of the fixed assets of catering companies come from current liabilities and short-term borrowings. This, combined with investments from all sides, results in the company not functioning well.

Many catering entrepreneurs do not pay attention to financial management. Procurement loopholes, inventory, consumption... these can be fatal if not paid attention to.

"Zero profit" business is not suitable for you.

Many catering companies have prospered in the first year, so they listen to the advice of many so-called industry experts. In the first three years, they can ignore profits and expand rapidly to make the company bigger and capital bigger. Don’t be afraid. To take on debt, we need to build momentum and build a brand.

Then sell the equity and become a listed company. This is called "zero profit" operation. But this is not suitable for the catering industry. "Zero profit" operation is not suitable for start-up enterprises.

Small catering companies are entry-level and lack "kung fu", that is, they do not have the ability to resist risks. Blind expansion will only make you die faster.

Don’t start the project easily without preparing funds.

Investment experts say: "Don't wait until you have money to invest in a business. There will always be a lack of money for feasible investment projects."

Many catering entrepreneurs decide to invest in a certain project. , had no money on hand, and prepared to open the business with the intention of repaying the capital in half a year or a year. However, due to insufficient financial support during the operation process, and the business was not as expected, the business ended up being heavily in debt. As a result, the capital chain was cut off and the business closed down.

Excessive pursuit of the "pier effect" results in working for the owner.

The most important thing for a restaurant is location selection. A good store will naturally get good resources. Especially in some commercial centers. When doing catering, you have to be willing to invest in location, but you have to do what you can.

If your rent is more than your income, should you stick to the location?

Therefore, you would rather others say that you are stingy and unprofitable, and you will withdraw no matter how good your position is.

Ignore the status and role of chefs in restaurants.

Many restaurant owners lack both "craft" operations and necessary machinery and equipment. I think that chefs only cook, or that the dishes are edible. If chefs are not taken seriously, product quality will decline and sales will decline.

Ignore product development and product portfolio, and fail to handle "more" and "less" well.

Specialization of Chinese food varieties cannot meet demand, and diversification is not conducive to chain stores. Be appropriately diversified. We should attach great importance to product research and development. We cannot ignore product development because China is a country with great food and rich varieties.

Develop blindly and pursue speed without establishing a reasonable structure.

When one or two companies are successful, they mistakenly think that this is a successful system. So when I didn't even know how to run the business, I opened a chain and started franchising. The result was that the faster I expanded, the worse my death was.

Employee training is not considered as a long-term and coherent business strategy.

The enterprise has insufficient training, low management level and low personnel quality, and lacks development motivation. In a sense, McDonald's success is not the success of hamburgers, but the success of the training system. McDonald's has a concept: the main reason for brain drain is insufficient training in the company. Domestic catering companies generally lack store management and personnel training.

Summary: The development prospects of catering are good, the market will become bigger and bigger, and the competition will become more and more fierce. With the entry of various elites, there will be more and more ways to play and live in catering. But no matter how it changes, the dishes, taste, management, and employees are the key. If you want to avoid detours when starting a catering business, the best policy is to be down-to-earth, don’t look down upon it, and move forward with humility!

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