Many people dream of opening a restaurant, coffee shop, cafe, or other food service business to fulfil their passion for food and desire not to serve the public. The UK has no shortage of such eateries; be it dine-in options or takeaway, you can find many food service businesses nationwide.
It is also one of the hardest industries to break into, but with the right knowledge and strategies, it can be incredibly rewarding. According to UK Food Distributors, the failure rate of restaurants is 60%, but this also means that 40% of restaurants succeed. This is a testament to the potential for success in this industry.
So whether you’re already established and want to avoid being the next place to close its doors or you’re ready to bring your ideas to the public and get set up, you must understand what is needed for your specific business. This understanding will help you avoid common pitfalls and set you on the path to success.
Let’s take a look at some of the common problems facing the food service industry. By understanding these issues, you can be better prepared to navigate the challenges of running a successful food service business.
Poor Location
Not choosing the right location or choosing the location based on the wrong reasons can immediately spell failure. Areas with low footfall, already established competition, not enough parking, poor public transport links and even unfamiliarity with the cuisine you’re servicing can indicate this is the wrong place to set up.
You need your business to be profitable, and depending on the type of restaurant you’re offering, you need to make sure it has what you need. For example, if you are a quick-dining place, then you need an option with good footfall, like a busy shopping centre. But if you’re a fine dining restaurant, then you need a location within a more affluent area to reach the right customers.
Not Having The Right POS
These days, customers expect no demand for a seamless experience. Offering different ordering options, such as self-serve kiosks or having an app to order from a table or QR codes, can remove the need for people to queue for their food.
Being able to enter orders, track payments, and allow for flexibility when paying, i.e. accepting payments at the table; a POS system for restaurants is available here to allow for more flexible ordering and payments, which means you can meet the customer’s needs with very little effort from them.
Ineffective Leadership
The success of a restaurant involves many different aspects coming together. One important, yet often overlooked, element is how well your team works together and the effectiveness of leadership. You need a fully trained team that works cohesively to deliver the right standards for your business.
From your front of the house to servers, your chef and kitchen staff, everyone needs to be able to work as a team to enhance the service you provide and to avoid one of the most common pitfalls of running a restaurant.
This means you need to be capable of managing everyone or have someone in charge who can do so; you need a fully equipped and trained team who can take orders and direction and can do the job with ease. Because with friction in the process of running a restaurant, slowly but surely, the cracks will appear, and you, too, will be just another failed statistic.
