Monday, January 8, 2007

Restaurant Failure Rate


According to a 10 year study by Cornell University and Michigan State 27% of all new restaurants fail within the first year of operation. 50% of them are wiped out after the 3rd year.

3 MAJOR REASONS THAT ARE CITED FOR THESE FAILURES:
1) Poor Location
2) Lack of $
3) Lack of Management Experience

Our focus on this class is on #3 - Lack of Management Experience. Specifically, educating about menu planning. The menu is THE major selling tool and controlling document within a restaurant and is essential to the success of a restaurant concept. The menu is the central theme that control, directs, and influences most functions within the operation.

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