I cannot proclaim to be an expert on anything.. but in my area of Pennsylvania, you can fast become an expert on how not to run a business. Restaurants, or anything else for that matter, can begin with a wonderful premise.. a sports bar named after a team that were famous football champs the beginning of last century for example? Bankrupt in two years..
So what does this?
There can be a few different ways it can happen too. Places with a base amount of customers that does NOT lose customers but still closes..
I knew of a place that actually expanded but kept its books so sloppy that it finally had to declare bankruptcy.. The business became to decline when distributors wouldn't cash checks anymore because there was no money.. it led to workers' checks bouncing because there was no money to cover the amounts.. It led to the demise of what seemed to be a flourishing restaurant/catering hall.
Maybe it's too much money being spent too quick in the beginning of a business' opening. The money that goes out for remodeling expanses of an old building can bury a new owner .. especially when it comes time to hire a staff that he or she must pay a decent wage to keep and train good people.
Staffpersons can also be devestating to a business if theft occurs. A restaurant I used to work out closed because bartenders were giving away the house in drinks after owners left each evening.. Bankrupt.
And of course it can be equally bad when the owners of the restauant plant themselves up to the bar .. people notice. The word gets out.
The restaurant business. To make it you have to be near perfect. To fail you have to just make a few little mistakes that can snowball into disaster..
