Is it time to close your restaurant?
If you are running a food or beverage business and you’re bleeding out money, looking for a lifeline, another loan, home mortgage, or friend to borrow from, it’s unfortunately time to cut your losses.
And here’s why:
I’m telling you this straight from my heart. I get emails from people everyday, sharing their business story, their life, and their financial struggles. And I just can’t muster enough energy to share with them that it’s not going to work, and they should close.
Unfortunately, either their process, business structure, or mindset just isn’t right! So I wanted to share the 3 biggest mindset mistakes that I see failing restaurant owners making, to hopefully help you avoid their same fate.
1. Letting Ego Get in Your Way
The number one mistake that I see from restaurant owners is letting their ego stand in the way of achieving any type of success.
They think that, because they’ve been in the industry for a while, or just because they’re a great cook, that they know everything. But it’s important to have the humility and wisdom to know when to ask for help.
Lucky for you, just the fact that you’re reading this article means that you’re ready to go out and find resources, to help yourself and put your business in a better situation.
That’s the reason why I love my audience, because you guys are the action takers that are willing to always improve, even when difficult, and never let your ego stand in the way of achieving the next level of success.
The lesson here is: Always go out there and ask for help. Ask people who have been there and done that, to show you the way. This shortcuts your time to success and lessens the money needed to fix your mistakes so that you can then build a profitable restaurant.
2. Only Focusing on the ‘Sexy Stuff’
The second mistake that I see a lot of people make is only focusing on the ‘sexy stuff’. What sexy stuff?
I’m talking about your brand, design, marketing, social media, and advertising, the list goes on…
All these things are sexy because they’re fun, exciting, and rewarding. However, these are the things that break your bank and business if you don’t understand and take the time to focus on the systems, processes, and fundamentals that truly make a restaurant successful.
There is absolutely NO WAY that you can create a restaurant successfully solely by running ads; it just doesn’t work like that. Think of advertisements like gasoline. You do not pour gas on logs of wood without any sparks first!
The only time that you want to run ads is after you already have a successful model proven by the market. That’s when you run your marketing campaigns to get even more people through the doors.
A lot of people don’t want to hear this because they only want to focus on the fun visual aspects that bring results right away, causing them to fail.
3. Staying Complacent
The third mistake that I see is owners staying complacent. Complacency is when you’re too pleased with yourself or your situation, and unaware of any potential problems or danger.
They might be running a very successful restaurant for a couple years, but as time goes on and the industry changes the owner and their business get left behind because they don’t change with it.
These owners do not invest in technology or best practices. They refuse to adapt to the delivery model. They don’t train their staff properly to build a great culture in their business. These are all issues with being complacent
And in today’s world, refusing to innovate is the surest way for you and your business to go down.
If you want to succeed it’s even more important that you test and implement the best practices working in the industry today. Not half a year ago, not pre COVID, but today! Find those strategies and adapt them for your business.
Otherwise, you are just going to run your restaurant into the ground.
So there you go friends, my heartfelt message to all of you guys out there…
The three mistakes that failing restaurant owners make:
- Letting ego stand in the way of success.
- Only focusing on the short term sexy stuff, instead of foundational things that will make business thrive.
- Being too complacent and not adapting with the times.
If you find yourself guilty of making these mistakes, then maybe really consider closing down your restaurant and starting fresh again. If you and your business still have some life in you yet, then I highly recommend checking out more of my resources to keep you on the right track.