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Six Reasons That Awesome Restaurants Close
People want to believe that making great-tasting food is the number one factor in building a successful restaurant, but the cold, hard, heart-breaking fact is that its probably barely hanging in the top ten.
While I (and likely you, if youre reading this article) choose restaurants almost solely on the quality of the food, weeven in this day of King Foodie cultureare in the minority.
I learned to make pizza at the side of a man who once put Dominos Pizza out of business in his town; I have served frozen chicken fingers in a dingy pub; and I was mentored in restaurant marketing by some of Seattles most successful restaurateurs. What I learned from this is that having amazing food and a successful restaurant are two very different thingswith very little correlation. Heres what causes the best-tasting restaurants to close:
1: Location, location, location: Its not all about being in the busiest placeits about being in the right place. Your late-night hot dog stand is going to do best near the dance clubs, while your child-friendly brunch spot should probably be in a neighborhood with plenty of families.
2: The ingredients are too good: Farm-to-table stuff doesnt often pay off. Well-sourced ingredients are a point of difference to a small percentage of customersbut all of them are asked to pay the premium. Bad restaurants can be successful because Sysco french fries are costing them pennies on the dollar that a customer pays them. Meanwhile, the idealistic chef is paying not only for the better potato, but also for the labor to cut, peel, chop, and fry them. Thin margins in the industry make the $20 frites a hard sell.
3: The ingredients are too weird: Serve foie gras, fish with the head on, or pig ear, and youve made the choice to alienate a population. There might be a burger elsewhere on the menu, but some people will fixate on the pig earand be frightened away from the entire restaurant.
4: Too much conceptor too little: It is overwhelming to walk into a place that is super-stylized down to every detail, the kind of place where you begin to wonder if you should have dressed in costume. Its stressful, as a diner, to play the part of someone in this fantasy world. Its equally stressful to have no idea what it is that ties the place together. Why are there tacos on a menu with curry? A cohesivebut not stiflingconcept sets customer expectations.
5: Its not a pleasant place to sit: Many mistakes on the plate can be forgiven if a restaurant is a great place to hang out. The restaurant group I worked for probably earned an extra turn on the early side of brunch just by being known as a place that was great with kids. On the other side, Ive stopped going to tasty restaurants because of: a waiter who touched me while I ordered, having those awful, uncomfortable French bistro seats, lack of purse hooks (especially at a high bar), its too loud, its too quiet, or it just feels weird. These reasons seem silly, Ill admit, but frankly, there are other places out there with good food AND pleasant experiencesso why pay money to be even the slightest bit uncomfortable?
6: Poor management: This is the clincher. From the chef/owner who tries to do it all himself, to the one who doesnt do enough and loses employee confidence (and effort), this is the culprit. Poor personnel management or poor food cost management drive a busy restaurant financially underwater, while poor reputation management or poor customer service management deter customers from enjoying the food. The list of ways to easily upset the delicate balance of managing a restaurant is infinite, and turning out great food, can sometimes even be the enemy of good restaurant management: the desire to serve good food will wreck your food costs and make you pressure the customer not to make substitutions.
So many restaurants, so many ways to fail.
Source: KOMO News/Seattle Refined
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