"According to a frequently cited study by Ohio State University on failed restaurants, 60% do not make it past the first year, and 80% go under in five years. " from Richard Feloni of Business Insider.
Many reputable food industry professionals cite the following as being issues pointing toward why restaurants fails at a rapid rate:
1.) Inexperience. Lack of seasoned managers who know how to run a food business because this is their core job function.
2.) Bad People Management. Diverse work force comes with diverse issues.
3.) Lack of Accounting Skills. If it's not your strength - find a pro!
4.) Customer Service Hits&Misses. Flawless customer service results in positive returns.
5.) Poor food execution. Self explanatory.
What's your opinion? Why do you think operations fail?