What Are the Main Challenges for a
Restaurant Entrepreneur?
There are several major challenges for any
restaurant owner. These start with
competition — your local area only has a
certain footfall, and you’re likely
competing with dozens of other local
eateries. Although you will build up a good
reputation over time, strong marketing is
essential in attracting patrons to your
business from the start.
Another major issue for restaurant owners is
financial management and making a profit.
The vast majority of payment you receive
from patrons will go toward food ingredient
costs (30-35 percent), staff salaries and
wages (30-35 percent), occupancy costs like
utilities and rent (5-10 percent) and other
costs. After all expenses are taken into
account, overall profit margins typically
clock in at between 2 and 6 percent.
Staff management also comes with its own
list of challenges. From unexpected
absenteeism to interpersonal conflicts,
juggling staffing priorities will take up a
lot of your time!
No two days are the same for a restaurant
owner, but all those days will be long! From
working out menus, training staff, marketing
and administration in the mornings through
lunch and dinner services, you can expect to
start work before 8 a.m. and not finish
until well after close. If you open a
restaurant, you need understanding family
and friends...because they will not be
seeing much of you.