People get into business for different reasons. Some get for the money, some for fame, whereas others tend to test the waters of business for their passion. Food enthusiasts all across the UAE step into the restaurant business for a myriad of objectives however, only some of them become successful in their endeavours.

Around 60% of new restaurants close within their first year before they reach five years of age because restaurant owners fail to get the nerve of the industry. Undoubtedly the restaurant industry in the Emirates is hard to enter, and many people jump into business even before they are ready. Hospitality Consultants in UAE predict the following reasons for which a restaurant might fall.

These are Listed as Follows:

Appalling Financial Planning

Running a restaurant in a dynamic location like UAE takes more than just good food and polite staff. Running a business needs impeccable financial acumen to manage money. Many new restaurant owners struggle with basic accounting skills and don’t know how to track their spending or profits. As it takes money to keep any business open, poor financial management can be a significant drawback for many new restaurants. Businesses that don’t have a proper accounting system in place can seek the help of restaurant consultants for an orchestrated financial plan to streamline their funds.

Poor Customer Service

If you know the power of the internet and social media, you probably already know that one good or bad review can make or break your brand. Before the internet, restaurants at least had time to identify and correct their mistakes. Customers need everything perfect nowadays and if your restaurant receives one bad review due to its non-amicable customer service, it can drive away your other potential customers.

Sub-Par Food

Isn’t good food the core objective of every restaurant? So, if your restaurant doesn’t fulfil your core objective and serves sub-par food that lacks individual taste quality and quantity, it can break down the chain of command and quality control while hiking the chance of your restaurant failure significantly.

Wrong Location

Most restaurants fail because they choose the wrong location. Just like any physical business, restaurants need to have a location that drives constant food traffic. In fact, in the case of restaurants, it is all the way more crucial to get a well-connected location whose rent isn’t expensive. If the locals don’t love your food or they don’t reach your location, you won’t probably have enough money to cover your rent, which might lead to your restaurant’s failure. So, discuss the location with the leading restaurant consultants before you open your restaurant.


Whether your restaurant is new or you have an established industry presence, it is likely to fail due to inexperience and lack of rock-solid leadership. New owners don’t know how the industry works so they might choose a less-than-optimum location or a cluttered menu. Some restaurant owners also don’t know how to lead their teams correctly; they might serve sub-par food or manage their finances poorly. That’s when Hospitality Consultants in United Arab Emirates come into the big picture. They can help you to learn from pragmatic instances/ other restaurant failures and avoid restaurateurs to prevent potential pitfalls.

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