Skip to main content

Is It a Good Time to Open a Restaurant?

Image
By
Recessions may create good opportunities for innovative entrepreneurs because the labor and operation costs tend to be lower than those in the good times. In the past, I discussed the mobile food truck opportunities and whether it is a good idea for hospitality students to start their own restaurant business upon graduation. Now that the restaurant industry has seen some signs of recovery and the mobile food truck idea is not “new” anymore, will it be a good time to open one’s own restaurant?

According to Tim Zagat, the Co-Founder & CEO of Zagat Survey in this Fox News video, now it is NOT the time to open a restaurant. Why?
  • The food price rose 2.2% over the last year.
  • Less people are going out to eat.
  • 39% consumers pay more attention to food price.
  • The failing rate for restaurants is as high as 60%.
Running a restaurant is tough. Competition is extremely high. Consumers are very demanding. Demand is almost unpredictable. Yet, inventory is hard to manage. Restaurant business takes long hours and an owner’s full commitment. Everything must be “perfect” because one tiny mistake could ruin it all. Do you agree with Tim Zagat’s opinion? What suggestions will you give to those who want to become restaurant entrepreneurs?

Labels:

Comments

  1. MichaelMay 17, 2011 at 9:26 AM

    I somewhat agree with this about the food prices rising and what not but who is to say that the food prices are going to go back down? I think Americans will adjust just like we all have to everything else rising. The price of gas, beef prices are have gone up probably 2 dollars per pound in some cases in the past 3 years. I also think that people that want to run their own restaurant are aware and willing to work the long hours, if they truly know what they are getting into that is. Running a restaurant has to be a passion or a calling for someone to be successful at it i think. So yes this is a good article for facts, but I don't think anyone reading it should get down on their dream of opening their own place.

    ReplyDelete
  2. Linchi KwokMay 17, 2011 at 10:07 AM

    Michael:

    Thank you for pointing out that people should NOT give up their dreams of opening their own restaurants. I like your comments. They must know very well of what they are doing and get ready for a variety of challenges. People eat at least 3 meals a day. So, there must be a market for the right restaurants. :)

    ReplyDelete

Post a Comment

Popular posts from this blog

Luxury vs. Millennials and Their Technology: The Ritz-Carlton (By Julia Shorr)

By
Embodying the finest luxury experience, The Ritz-Carlton Hotel Company, LLC has been established since 1983. In 1998, Marriott International purchased the brand offering it more opportunity for growth while being independently owned and operated. They are known for their enhanced service level as the motto states, “Ladies and Gentlemen serving Ladies and Gentlemen”. The luxury brand now carries 97 hotels and resorts internationally and is attempting to keep the aspects of luxury while keeping up with the trends of the technologically improving generations. The Varying Demographics of the Target Market The Ritz-Carlton’s typical target market includes: business executives, corporate, leisure travelers, typically middle-aged persons and elders, and families from the upper and upper-middle class section of society .   This infers a large range of types of travelers in which all are similar in that they are not opposed to spending extra for the luxurious ambiance. However, with
4 comments
Read more

Is It OK for Hotel Staff to Wear Piercings and Tattoos?

By
Time has changed. I see more and more college students wearing piercings and tattoos nowadays, but is it OK for hotel staff to wear piercings and tattoos? The answer is “no, no, no.” According a report at USAToday.com, customers across the board do not want to see any hotel workers with pierced eyebrow, pierced tongue, tattooed arm, or nose ring. Some may argue that tattooed and pierced workers may seem more acceptable in edgy boutique hotels as compared to the big franchised hotels, but the survey results did not find any differences among a variety of lodging products. Many respondents believe people who wear visible tattoos and piercings are taking a high risk of their professional lives. If you stay in a hotel, do you mind being served by tattooed and/or pierced staff? What if you are the one who makes the hiring decision? References: USAToday.com: http://tinyurl.com/linchikwok08042010 Picture was downloaded from http://tinyurl.com/linchikwok08042010P
25 comments
Read more

Besides helping the environment, what other benefits can restaurants see from green food packages?

By
Restaurant curbside pickup evolved from the old-fashioned takeout service and has gained momentum since COVID. Restaurateurs embrace the concept, and consumers want it. Curbside pickup will remain an essential restaurant distribution method even after the pandemic. Do off-premises restaurant services add a burden to the environment? The surge of restaurant off-premises services (curbside pickup, takeout, or delivery) could harm the environment because many retailers use food containers and packages made of plastic for one-time usage. Research shows that our world populations produce 130 million tons of single-use plastic a year (including more than food packages here), but in the U.S., only 8% of all plastic products get recycled. Some restaurants have begun using more sustainable materials in food packaging (e.g., disposable containers). Their efforts deserve a round of applause! Nevertheless, it is unclear if their good deeds can also bring them monetary rewards. For example, can gr
6 comments
Read more