The restaurant industry is promising. You get to be the talk of the town while earning big bucks and the delicious food is just the silver lining. Undoubtedly being a restaurateur has tons of perks, but restaurant mortality is a real thing. Owners who aren’t too keen on the numbers often end up struggling with sales and upkeep hence leading to the failure of the restaurant. Whether it is about determining why the sales figures are sinking or why customers aren’t rushing in. What’s worse is most restaurant owners live in denial and they don’t understand they are doing something wrong until it’s too late.

Don’t want to make the same mistakes as other restaurant owners? Here are some reasons why restaurants fail. Dive into this guide from the leading Restaurant Consultants in Dubai and identify the problems and find the remedies.

Inside Thefts

Even petty thefts and pilferages can plunder restaurants. Stealing from the inventory and on the counter can result in small losses that mount up to a major chunk of money. Internal thefts can lead to increased food costs in restaurants. Thus, if you don’t want this to happen in your restaurant, install a state-of-the-art POS with a rock-solid inventory management system. You can also integrate an anti-theft system to live track your inventory and inventory transactions.

Atrocious Customer Experience

One of the most popular reasons why most restaurants go out of business is because of their inability to offer a good customer experience. When someone has an unlikely experience at a restaurant, they might post it on social media as well as other review sites which can scar your online reputation. From hostile staff to mix-ups in orders, the reasons are limitless for poor customer experience. So, ensure to train your staff thoroughly analyse the reason behind every negative review to prevent further issues in the future.

Unfavorable Location With High Rent

Another reason why restaurants don’t live after the first year mark is because of low ROI. When you invest in a location that doesn’t offer you returns, instead you end up overspending, and you won’t be able to cover your costs. The thumb rule is opening in a location where the foot traffic is good and where the rent never exceeds at least 10% of your total revenue.

Lack of Experience

If you are new to the industry, there are chances that you fall short of business acumen. Most restaurants fail due to poor management and lack of financial planning as the admin team is a first-timer. Undoubtedly you cannot just uproot the entire operation owners. But, you can at least research and analyse every stage of your restaurant business.

Complex Menu

Even the tiniest of things can make the biggest differences. When you are designing a menu understand that it’s not rocket science. Just simplify everything and create a menu that lists the same ingredients and flavours just as your dish.


If you think you are halfway through your downfall or you want an extra hand with managing your restaurant business, feel free to reach out to the Top Restaurant Consultants in Dubai, Abu Dhabi, Sharjah, Oman, UAE, Muscat, Saudi Arabia, Jeddah, Riyadh, United Arab Emirates.

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