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This is really something everyone who opens a restaurant should be prepared for. An overwhelming majority of restaurants go out of business within a few years.
by briga 9y ago
This is really something everyone who opens a restaurant should be prepared for. An overwhelming majority of restaurants go out of business within a few years. It's a really difficult profession to be a part of, and if you want to be successful you've got to make some serious sacrifices--even then that might not be enough.
- Top19 9y agoThere was a Wall Street Journal article a few weeks ago that said banks were being far too lenient about giving out loans to restaurants and pumping money into an essentially dying, unforgiving market. I actually thought the WSJ was a little hard on the banks, since restaurants are so notoriously hard, but I wonder if this is more of systemic issue.
- acchow 9y agoI really don't think banks give loans to restaurants. I'm gonna need to see a citation here.
- photoJ 9y agohuh? https://www.fundera.com/business-loans/guides/restaurant-loans https://www.fundera.com/business-loans/guides/restaurant-loa...
- Top19 9y agoFair request and it was actually the New York Times so my mistake: https://www.nytimes.com/2017/10/31/business/too-many-restaurants-wall-street.html https://www.nytimes.com/2017/10/31/business/too-many-restaur...
- Analemma_ 9y agoInvestment banks might not loan to individual restaurants, but they absolutely do loan to chains, as well as to PE firms trying to buy those chains in leveraged buyouts.
- waqf 9y agoAnd yet it sounds as if his restaurant wasn't totally nonviable, he just didn't have nearly enough runway for all his first-time mistakes. He might even be successful next time with what he's learnt, if he had the stomach for another go … and another $200k starting capital …
- wolco 9y agoPlease do not encourage him. He lacks the proper budgeting skills. He starts thinking about expanding shuts down the place for a week and then everything falls apart.