No. of Recommendations: 0
95%+ of new restaurants fail. ~Art

73.6% of statistics are made up on the spot. ~Steven Wright

Restaurant Failure Rates Recounted: Where Do They Get Those Numbers?

Several years ago, researchers at Cornell University and Michigan State University conducted a study of restaurants in three local markets over a 10-year period. They concluded the following: After the first year 27% of restaurant startups failed; after three years, 50% of those restaurants were no longer in business; and after five years 60% had gone south. At the end of 10 years, 70% of the restaurants that had opened for business a decade before had failed. Those are far different numbers than a 90% failure rate after the first year quoted by our television star chef. Another academic research study concluded that 81.4% of all small business failures result from forces within the control of the owners/managers. The bottom line is that even if the failure rate is a little daunting, failure is not inevitable.
Print the post  


When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.