BUSINESS: 7 Common Mistakes Restaurants Make That Doom Them to Fail [Sponsored by Orderly]
Failure… it’s all too familiar in the restaurant industry. 80% of restaurants fail within their first four years. So how do you avoid the pitfalls the vast majority of restaurants make? We talked to thousands of restaurants owners and managers... Here are the seven common mistakes restaurants make that doom them to fail.
DID YOU KNOWS…
Americans Voice Support of Net Neutrality
Last Wednesday, the Federal Communications Commission (FCC) released its plan to reverse net neutrality regulations that were put in place under the Obama administration in 2015. This chart, based on Consumer Reports survey, shows the majority of Americans support current net neutrality rules. Despite this, the reversal is still expected to pass in December.
Billionaire Club
Billionaires are buying sports clubs all over the world. According to a report by UBS and PwC, more than 140 top sports clubs are owned by just 109 billionaires. Sixty of those super-rich club owners are from the U.S., 29 from Asia and 20 from Europe. In the U.S., two thirds of the NBA and NFL, and half of the MLB teams, are owned by billionaires.
McDonald’s Chicken Tenders Are So Popular They’ve Already Run Out
McD’s new buttermilk chicken tenders are so popular that they’ve temporarily run out of them. They promise they’ll return at the end of December.
UNPLEASANT CONTRIBUTIONS
Why it matters to you: Restaurants want relief from NYC law that requires they pay labor activists.
Restaurants in NYC are facing some new regulations. One in particular is causing them to sue the city on First Amendment grounds. The rule requires restaurants to pay to charitable organizations money that employees voluntarily donate through payroll deduction.
The restaurants claim that this is forcing them to fund organizations like the Fight for $15 and the SEIU union, because the rule doesn’t specify what qualifies as a charity. The suit alleges that the regulation is intended to force restaurants into a backdoor funding of labor activists and unions by requiring them to forward donations from their staff.
This is clearly focused on the fast food segment, but have no illusions, what happens in fast food is relevant to full-service restaurants. The First Amendment argument is novel because it claims that the operators have a right NOT to contribute money they pay to staff to any other recipient. Other regulations in the bill included scheduling rules against close-opens and work breaks. Our industry is already heavily regulated and it’s clear this rule will greatly improve the prospects of labor groups to raise money to finance their agendas. Should restaurants be facilitating their own adversaries’ causes?
DO YOU CATER?
Why it matters to you: Will catering be the new trend in 2018?
When a national chain announces a new initiative, it’s an opportunity to preview likely trends in the industry. So, with Tilted Kilt announcing it will begin a formal catering program in 2018 it would seem a new trend is born. Included in their announcement are some typical menu items and a full soup-to-nuts catering service. Is this just delivery on steroids? Maybe, but it is also a brilliant idea if they get it right. Catering is the least disruptive and most profitable way to jump start sales for any full-service restaurant operator.
The beauty of catering lies in the specificity of the order, the exact number of guests and pre-ordered menus make it far easier to plan for than regular revenue. Catering has long been a great way to leverage the economies of your fully staffed kitchen without disrupting your normal revenue flow. Unlike delivery -- which happens on-demand and can bog down your kitchen when busy -- catering has none of those downsides. It’s also a tremendous way to meet new potential guests and impress them with your food and service. This might just be a trend we can all embrace in 2018.
