Why Restaurants Fail

Uncategorized Sep 11, 2017

There’s only one reason. 

There’s only one reason why your restaurant will fail. 

However, first let me tell you all the reasons it won’t. It’s not your business partners. It’s not your staff. It’s not your market. It’s not your spouse. It’s not your competition. It’s not your price point. It’s not even who is currently president. 

The only reason restaurants fail is because of you, the restaurant owner. 

I’ve spent the last three decades working in the restaurant industry. I’ve owned my own restaurants and I’ve also had the honor to work with celebrity chef, Wolfgang Puck for 5 years. 

I’ve had successes and I’ve had failures. I also have come to terms to be able to own all of it. And I’m here to say you can’t own your successes and your failures, then you can’t move forward. 

Are you still with me? 

Great! Because what I want to do is offer you some advice on how to select the best business coaching for your restaurant. 

What do you want to look for in a business coaches? 

The first thing you need to understand is the difference between advice and opinion. Everybody has an opinion. What’s the difference? Well advice is information given firsthand from someone who has been there. I see so many business coaches in the market today have never actually owned their own restaurants.

Would you trust a skinny chef?  No.

Would you hire an overweight person to be your personal trainer? No, of course not.

So why would you take restaurant advice from someone who’s never owned a restaurant?

Taking that even further, have they actually had any failures as well, learned from them and became successful afterwards? Failures are your biggest capital. That’s were most learning comes from. If you’re going to take advice from someone and know that it’s not opinion, then make sure is from someone who’s actually been there. 

In all my years, I have distilled that there are three keys that make outstanding restaurants. The first one is fundamental to all restaurants and that is the systems required to operate a restaurant. Every great business coach understands systems and that’s what most of them teach. In fact, 95% of business coaches focus on systems. What do I mean by that? It’s your menu, it’s your marketing, it’s your checklists, it’s your training, it’s your procedures, basically all the fundamental elements that are needed to manage day-to-day operations. 

Now don’t get me wrong, systems are very important. In fact, I would go to say they are foundational to restaurant success. There are some great business coaches out there that are great at teaching systems.  However, the problem is that only focused on systems. And you can have the best systems in the world however, if you don’t have a plan on how to strategically use those systems, then you’re going to fail. Because you have no direction. 

The second area is understanding strategy. You can be a great at systems, however if you don't have a strategy you'll just get lost with the competition. What is great business strategy? It's asking better questions. Why are you in business in the first place? Why do customers drive to your restaurant? What are your core values, what do you stand for? What are your overall strategic objectives that guide your restaurant?  

There are probably a dozen business coaches out there that understand strategy at a high level. Strategy is the difference between playing chess and playing checkers. Most restaurant owners run their restaurants based on reaction just like in checkers. The market does this, they counter with that. When you start running your restaurant with a strategic plan...now you start looking at all the moving pieces and develop a plan to best use each element for its strengths. 

The challenge with strategy is a takes a deeper level of thinking. Most restaurant owners get too caught up in the day-to-day operations to really come up with a strategic plan to move their business forward. And that’s why they struggle. Probably 10% of business coaches out there understand strategic planning enough for restaurants that can actually help them move them forward. You have to understand that if your strategy is not in front of your systems, you will get left behind. Now while systems and strategy are critical elements needed to run a restaurant. In fact, they make up only 20% of restaurant success. 

There is a third area that almost all business coaches don’t talk about and that’s probably because most are not qualified and that is sad because it makes up 80% of restaurant success. That last area is psychology and the mindset of the restaurant owner. Now as a restaurant owner you can learn all you need to about systems and strategy, however it’s how you apply and use those things that makes a difference. 

And that’s you. So unless you understand how to manage YOU, your inner game then it doesn’t really matter what’s going on in the outer game. After all, the inner world creates the outer world, it’s not the other way around. Thoughts do become things. So how do you really address mindset? I mean there are so many different layers we can discuss and so many people don’t address this or aren't even unaware of the mental brakes they have on. 

So many behaviors of restaurant owners are unconscious. So how can you be aware unless you have someone who can point out your blind spots?

If you’d like to learn more about systems, strategy and the mindset of successful restaurant owner and invite you to take a look inside The Restaurant Coach™ University. It’s loaded with tools and programs designed to strengthen the three keys of restaurant success.

Sign up for one of my membership programs, enter my world, and play the game at my level

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