Top-notch Action Plans to Save a Restaurant on the Verge of Failing

Top-notch Action Plans to Save a Restaurant on the Verge of Failing

As you know, running and maintaining a restaurant is not as simple as you might think. You could lose your mind trying to balance all of the managing tasks, especially if you have the worry of having a faltering restaurant on your hands, with a deteriorating revenue. Being an expert in restaurant business and restaurant website builder, Restaurantify experts are here to decrypt the signs and symptoms of a restaurant that is on the verge of failing. Then, to delve deeper by examining at the major success aspects of a restaurant and designing a restaurant rescue plan, exposing the realities on how to save a losing restaurant.

So, let this piece of writing be divided into 2 important parts, 

  1. The reason why the majority of the restaurants fail?
  2. Steps to save a restaurant that is on the verge of decline.

Covid-19, currently is the most destructive bane of the restaurant business forcing numerous restaurants and food businesses to lose revenue and fail. The only options appear to be limited contact takeout and no-contact deliveries, since many restaurant outlets have been forced to shut down and restaurants have been going bankrupt.

When we look into the statistics, the figures are highly alarming. According to research conducted by Ohio University, it is estimated that 60% of restaurants go out of business before the first year of their opening. 

So, what is that factor that leads to the failure of a restaurant? 

What is the greater reason that knocks many restaurants out of business revenue, before they celebrate their first anniversary? Well, in a huge amount of cases it is the wrong location.

Taking into account this case, it is stated that a restaurant's typical lifespan is just only 4.5 years. It takes a good amount of experience to figure out how to excel in the restaurant industry

So, let us have a clear look at some of the early indicators that show a restaurant to be in crisis, as well as ways to save a restaurant business on the verge of closing.

Why Do Many Restaurants Fail?

Knowing the reason for your failure contributes to success, but as a restaurateur, you need to know what works and what doesn’t work. So determine it, here are some of the most common reasons for the failure of a restaurant that you need to know.

1. Improper Setting of the Restaurant:

If you are starting a restaurant, the site and location of the restaurant is crucial. You must ensure that it (location) is compatible with your restaurant's idea. If your main demographic is millennials, selecting a place in a neighborhood with a median age of 50 is highly indecisive.  

Other concerns with the location include little footfall, no visibility, exorbitant rents, and a large number of competitors around the location. 

Apart from the above-mentioned factors, you need to analyze the following queries like, 

  1. Is your restaurant's structure easily accessible? 
  2. Do you have a parking lot? 

To learn to overcome a bad location, you must find answers after you've determined your target market.

2. Minimal Experience:

Lack of experience is especially true for a restaurateur who may work extremely hard but lacks the competence required to operate a restaurant. The role of a restaurateur is not for everyone.

This lack of competence and skills exemplifies the worst aspects of accounting. To be able to detect if everything is running properly as a restaurateur, you must be familiar with restaurant accounting standards.

Failing to update data whenever it changes, results in a restaurant's doom because you won't be able to get an accurate estimation. Keep in mind that bringing someone in with high accounting expertise to salvage your business will cost you a great deal of money.

3. Selecting the Wrong Staff:

Your staff's behavior will reflect adversely on your restaurant, whether it's due to non-professionalism or a bad attitude. You need to consider soft skills while hiring people and provide them mostly with income. Employees generally value flexibility, as well as the opportunity to develop in the workplace, attend workshops, and so on. That will encourage them far more effectively than any sum of money could.

4. Food of Poor Quality:

Because food is at the center of your business, this is an obvious argument. There are a myriad of reasons why the meal may not be up to par, ranging from hiring the wrong cooks to preparing a dish so frequently that you're just going with the flow and not paying enough attention to all of the processes that make the recipe fantastic in the very first instance. Constantly maintain an eye on the performance of your food and sample it frequently to ensure it's still delicious.

5. Unacceptably Poor Customer Service:

People expect a perfect food experience, particularly now that they have the ability to voice their frustrations online. Since you need favorable ratings, the first impression is always crucial. So customer satisfaction is a crucial x-factor that makes or breaks your business. 

6. Lack of Clarity and Perception:

It's not enough to have a nice menu and a restaurant concept. Restaurants should have a clear mission and vision statement that is at the heart of the operation and inspires both the employees and the customers.

What motivates you to create a restaurant? It isn't enough to wish to be wealthy. To develop a tale that will captivate clients, your core mission should draw on thoughts, feelings, and recollections. For instance, an English restaurant may serve classic cuisine in order to transport clients to the British Isles and provide a realistic experience for those who miss the country.

7. Lack of Marketing Plans and Ideas:

A deficiency in marketing is another symptom of a faltering restaurant. Here's some restaurant marketing guidance: although if your business is well-known, you still need to advertise. Consider large franchises such as KFC and Pizza Hut.

8. Inadequate Menu Preparation and Pricing:

The sales revenue should account for about one-third of your restaurant's earnings. You must fulfill all expenditures and make a profit while determining the pricing for each dish. Remember that the typical profitability for a restaurant is roughly 6%.

Well, all the above mentioned factors should be avoided as these are the typical restaurant failure symptoms. 

Now, you know what are the things that need to be avoided, so let us delve into the things that you need in order to lift your restaurant to the next level.

Effective Steps to Save a Failing Restaurant:

1. Make Your Menu More Appealing:

It's not simple to get the right balance with a menu. You wouldn't want to be too specialized since it will discourage customers, but you really do not want to offer just a little bit of everything. Customers always dislike restaurants that provide different dishes all at once.

Find the best food that fits perfectly for you (your most renowned dish) and adhere to it to make a no-fail menu. Ensure the menu has appropriate prices and no incorrect spellings, and think about employing an experienced photographer to take good pictures of your food.

2. Change the Time of the Opening of Your Restaurant:

How many of you have wondered how to increase the number of people who visit your restaurant? Changing your opening hours is one of the most straightforward ways to save a struggling restaurant. 

You should be open when your consumers are the most likely to come in. Try to open early and offer breakfast alternatives if you begin at noon. Alternatively, open early on weekends and create special brunch menu options with discounts.

3. Make Use of a Table Reservation System:

Table reservation systems allow consumers to reserve a table and place an order ahead of time will help you handle more customers each day and boost earnings. This is incredibly significant if you observe people who leave due to the long wait. 

Restaurantify develops the best table reservation system in the market that greatly benefits the restaurateurs, with this you can serve more people every day. Allow your consumers to place their orders ahead of time. Start Right Now!

4. Plan Special Events:

Organize intriguing events and festivities to attract more customers to your restaurant. People will purchase and even become regular customers if there is a taco Tuesday or a cocktail special every Friday. Restaurants that think creatively whenever it comes to drawing consumers are one of the key reasons for their success.

5. Create a Bond With Long-term Customers:

Here's a tip for turning a business around: show consumers that you recognize them and value their devotion. How? By occasionally sending over a complimentary drink or snack. Give people a reason to appreciate you on social media, because what customers say about you on social networks matters a lot.

6. Examine Your Financial Situation:

Knowing how to handle the finances of a restaurant is a long and convoluted route. You need to know what happens to the majority of your money? Is it possible that you're spending more and generating too little? Putting your expenditure in context will help you see where you really need to reduce expenses and how you might redistribute resources to stay afloat.

First and foremost, consider how much you spend on food with how much you charge for it. To flourish, you must have a sufficient margin of profit.

7. Always Keep Track of Customer Testimonials:

Negative reviews are one of the greatest reasons that contribute to the failure of a restaurant, which creates a terrible image, therefore keeping track of your restaurant’s customer review is critical. In case, there are a handful of negative reviews from the customers, you need to address it immediately and rectify the area that is in the spot of bother.

8. Provide Online Delivery:

A restaurant that catches up with technological advances like creating a compact restaurant website is the one that succeeds. If you previously haven’t created a website for your restaurant or implemented online food ordering and distribution services, it’s an excellent time to start because it will increase the revenue of your restaurant dramatically. It also won't cost you much if you use the services of companies like Restaurantify.

With a website that highly supports online food delivery, you can help your restaurant receive more profit. You can place your first order right now using Restaurntify’s system. Just click on to take off your online delivery services in just 5 minutes.

9. Leverage Your Social Media Presence:

It is very important to keep your restaurant’s social media profiles very intriguing by keeping your followers informed about the discounts and offers. You can also share a good amount of business news.

Apart from the above mentioned factors you need to create a great  footprint on all your important social networking When it comes to promoting your restaurant, you should aim for maximum online visibility.

10. Think About Refinancing:

If you aren't earning enough profit and your restaurant is faltering, you might approach a financing organization or a bank and request additional funds. Obtaining one, on the other hand, is a difficult task, so think very carefully before proceeding with this restaurant concept. 


Although business success rates can be depressing, if operating a restaurant is your ambition, don't stop and follow this advice about how to save a struggling restaurant. 

Know how to run a restaurant effectively, increase earnings, and grow a lucrative business by borrowing from these key performance elements in the food industry.