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Why Restaurant Business Fail to Survive in Dhaka

Bad Location choosing

Location. Location. Location. A bad location is one of the biggest—if not the biggest—reason a restaurant fails.

Poor visibility, no parking, and no foot traffic is a combination that makes it nearly impossible to turn a profit.

Careless Ownership

Being a restaurant owner means working at the restaurant. Hanging out night after night and getting famous in the process is just one of many restaurant myths that abound when discussing ownership. Good owners are the first in and the last out because they have the most to lose, but also the most to gain.

Poor Management Team

You hire someone who you think will be a great general manager, kitchen manager, or bar manager since the person has experience and excellent references.

Then a few months down the road, not only don’t they manage the restaurant, they alienate staff, drink away the profits, or steal money—or all three.

Bad Customer Service

Bad customer service is an obvious reason for any restaurant closing. A reputation for bad service spreads like wildfire and can seem at times irreparable. Customer service is integral to staying open, as even the best three-Michelin-starred restaurant would shutter with bad service.

Too Many Staff Members

If anyone is standing still, the business is overstaffed. When several servers, three or four cooks, and a bartender are standing around, the restaurant is probably hemorrhaging cash in payroll costs. Another common problem with a high payroll is paying any single employees more than they are worth.

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Little or No Advertising

As more and more chain restaurants open across the country, advertising and marketing are both key in establishing a new restaurant's reputation.

Lack of Capital Before Opening

Don’t go crazy buying new equipment and furniture for a restaurant before serving a single customer. Buy what you need and consider the benefits of used equipment. Avoid putting anyone on payroll until as close to opening day as possible.

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