If you’re thinking about starting your first restaurant, it’s important to know where to spend your money. A restaurant is a demanding enterprise. Without careful allocation of your limited resources, it’s easy to see the end in sight, right when you open your doors for the first time. Most restaurants close within a year of opening.
These long odds don’t mean that a restaurant is a game of Russian Roulette. Most establishments that close early do so because of mismanagement. Many people who start restaurants think “you make food, you sell food, you profit.” While, yes, those steps are essential to a successful eatery, there’s much more to success and longevity than that.