Home Articles What are the Risks Associated with Starting Your Own Restaurant?

What are the Risks Associated with Starting Your Own Restaurant?


When you’re thinking about starting your own restaurant it is easy to think only of the positive features. Of course, it is good to dream and plan to succeed. But, the reality is that approximately 26% of restaurants will fail in their first year.

This doesn’t mean your restaurant will go bust, it means you need to be aware of the potential risks. By doing this you’ll be able to plan for them and keep your restaurant going even if the worst happens.


One of the biggest issues facing any restaurant owner, especially in the beginning, is a lack of funds. Restaurants are expensive, you need equipment, insurance, staff costs, and all the furnishings. That’s before you even start looking for the best prices for cafeteria cleaning supplies

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If you haven’t developed a comprehensive business plan then you may not have access to emergency funding when you need it. Most of the bills cannot be deferred or avoided, and you need food to cook. If you want to avoid one of the biggest risks when starting a restaurant you need to have emergency funding available.

Health & Safety

The next biggest issue is health and safety. It is important to be aware of the rules and regulations that surround the restaurant industry. Cleanliness is essential to ensure you’re not breeding bacteria or pests and contaminating the food you serve.

This means that your staff needs to be properly trained and your premises need to be maintained properly at all times. Don’t forget that an inspector can visit at virtually any time and close your business temporarily, or even permanently if you don’t reach the required code.

It’s a good idea for you, and your staff to go on a health and safety course, this will help to ensure you know what needs to be done and that you do it. Most health and safety is common sense and cleaning, doing it properly as you go can dramatically reduce your risks.

Underestimating The Market

Social media is a fantastic way of reaching new customers. You can start before you even open by talking about your aims and building interest in your restaurant. Pictures of delicious food will help to get others talking and ensure that you have customers when you do open.

Underestimating the strength of the market or the power of social media is going to increase the likelihood of your business failing.

Don’t forget that your restaurant can offer different food types at different stages of the day, helping you to make the most of all the different market opportunities.


If you have a great idea for a restaurant and are a brilliant cook then you may think you have everything it needs to succeed. However, inexperience is one of the biggest reasons for business failures.

Unfortunately, it can be hard to envision what may go wrong if you have never run a business before, this is why entrepreneurs that fail in the first business attempt are more likely to succeed on the second attempt.

To help prevent inexperience from being a problem you need to plan for every detail you can think of and talk to as many other restaurant owners as you can, never be afraid to ask for advice!

Failing To Follow Trends

One of the biggest issues that many business owners face is a failure to follow industry trends. It can feel great to start a restaurant and turn a profit in your first year or two. However, if you don’t keep an eye on the industry trends the food and service you’re offering can become outdated, leaving you offering something that no one actually wants.

Just because you have one customer that comes to you every day, doesn’t mean you have enough to ignore the current trends and demands. Being aware of the market is essential to your ongoing success.

Finally, don’t forget that restaurants will always be needed, you just need to be able to adapt to make the most of every situation.