Doing your due diligence before you begin: What are the top 7 challenges restaurant owners face?

challenges restaurant owners face

Restaurant owners face a lot of competition and need to get expert advice before going into business. Find out what restaurants have been around for years. Afterwards, try and talk to the owners about the business techniques they use. Here are some ideas on how to get around the challenges ahead.

Find the Capital

A restauranteur should have enough capital to fund the business for a year. A restaurant owner needs the business to stay afloat long enough to gain a regular clientele. Capital is necessary to lease a building and hire staff. In addition, money is expended for advertising, equipment, furnishings, and stocking the kitchen.


Hire a seasoned manager to help with a new restaurant. An experienced manager knows what areas need attention. For example, keeping track of how many people are being served is important. Menu trends need to be followed and less popular offerings should be replaced. Inventory is crucial so the facility does not run out of key food items. Be able to recognize whether the business is profitable or losing money.

Location is Everything

Ever wonder why hotel restaurants have longevity? They’ve got a great location which delivers automatic customers. Weary travelers check in to the hotel every day. They’re hungry and will go to the closest place to eat. That place is the hotel restaurant. Indeed, a restaurant owner should search for areas with restaurants and shops. Ideally, stay away from existing restaurants that serve the same type of food as your business.

Don’t Forget the Menu

The importance of the menu is often overlooked. One has to think about the correct number of menu choices. Further, menu prices need to be fixed. One expert suggests keeping the menu short. The idea is that longer menus mean the owner has to buy more food to prepare. It’s better to concentrate on a shorter menu with dishes that are well-prepared. The menu should be on the restaurant’s website if carry-out is an option.

Hiring the Best Staff

Get tips from other restaurants about hiring the best staff. You’ll need to have some experienced staff members. Inexperienced staff may be to blame for poor customer service. These days, unhappy customers voice their opinions on social media. Keep a knowledgeable accountant on retainer. The accountant will make sure all employment laws are followed.


Every new business should have a marketing strategy. There are some inexpensive ways to market a business in the technology age. A website and social media presence are absolutely necessary. Use social media to market special promotions and reward customers with a loyalty program.

Legal Issues

Get advice from an attorney about your liquor license and insurance needs. Restaurants that serve alcohol need to stay on top of the rules and regulations. Make sure customers are the legal age to buy alcohol. Remember, to ask for their identification. In most states, businesses with three or more employees are required to have workers compensation insurance. The bottom line is to protect the business from liability at all costs.

Owning a restaurant can be difficult but the rewards are amazing. People don’t open businesses if they don’t like challenges. Take the challenge and make your restaurant “the place to be seen” for years to come.

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