A number of years ago we performed analysis as the foodservice expert on a dispute involving a failed restaurant. We looked at various studies, including one from the IRS and another from Michigan State University, in addition to evaluating and surveying existing food and beverage establishments within proximity to the subject restaurant. It was concluded from both our analysis and the studies that the majority of restaurants usually fail in the first year. Of those restaurants and foodservice businesses that made it beyond a year, 70% failed within the next 3 to 5 years. Of those that made it beyond then, 90% remained successful and stayed in business longer than 10 years. There is a more recent article this week in The News Press that reports similar results that our foodservice expert report concluded more than a dozen years ago. This excerpt, along with the full story, shows times have not really changed that much as a restaurant management consultant and what you can learn from these Florida restaurateurs: “According to therestaurantbrokers.com, the average restaurant’s life span is five years with up to 90 percent of independently owned restaurants closing in year one. If that’s the case, then Southwest Florida’s restaurant veterans, places such as the 60-year-old Farmers Market and 50-year-old Cracker Box, represent the .01 percent; age-old, family-run eateries that credit consistency and simple, delicious food for their longevity.” However, there was another report done in 2007 that suggests the above stats are not always true. In this study, which involved looking at approximately 2,500 restaurants in Ohio, the conclusion was there is a 60% failure rate within the first 3 years. These restaurant management research findings are not that far off yet not as ominous either. Have similar reports or facts that confirm or dispute our foodservice expert conclusions? Please add to our reader’s insight and share it here.
Perry Group
Hotel & Restaurant Experts For The Hospitality Industry
