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I knew a location where in the 15 years I lived in the area 10 restaurants remodeled the building and then failed. Apparently no one data mined the history of t
by coldcode 9y ago
I knew a location where in the 15 years I lived in the area 10 restaurants remodeled the building and then failed. Apparently no one data mined the history of the building. There are lots of reasons why a restaurant go out of business; often decisions made before the first customer even shows up will kill it.
- conductr 9y agoI recollect reading somewhere that opening a restaurant in a location where another restaurant has failed puts your failure chance at 90+%.
- dsfyu404ed 9y agoThat doesn't mean you can't suitably insulate yourself from the failure and make a lot of money running the place into the ground in the meantime. It's like a college bar that serves to underage people. It closes amid controversy, changes ownership and reopens with a different visual theme and the same business practices every few years. You can do this with all sorts of businesses. It's more common in places where people have a lot of disposable income and you can run a bad business for a few years before people smarten up, word gets around and the place folds. Tourist areas, college towns, whichever town is seeing an influx of tech industry money or an oil boom, etc are the places where you can run a bad business the longest before folding.
- taurath 9y agoAs opposed to like 85% failure rate within the first 2 years for all restaurants! A lot of the time when you get a location you're also getting a liquor license which is required to turn any profit.