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A lot of restaurants stay in the red for the first 3~5 years. I have a friend who just opened a brewery in Tennessee in December. They don't serve food; it's ju

A lot of restaurants stay in the red for the first 3~5 years. I have a friend who just opened a brewery in Tennessee in December. They don't serve food; it's just beer, so they might be alright - but I should probably call and see how he's doing. I sure hope they've started bottling to canning. You'd hope owners would keep a buffer of either cash or loans/credit-line to last three months, but a lot of them starting up may not have that bootstrap capital. Restaurants that have been around for years with good management can probably weather a month or two. Even the best well restaurants are going to feel the strain if we go to month three.

mattmanser 7y ago
This time of year is the beginning of a slump past Mother's Day for restaurants too (at least in the UK). And they probably won't get much out of Mother's Day this year either. Coming out of the Xmas period, May, June, July looming which are low turnover periods. If you're already teetering, you're going to fail. The UK's had a lot of big chains shut down or scale back recently too, there was a big explosion in restaurants and bars about 5 years ago and the first round of losers happened over the last couple of years.