🟢 Top 5 reasons so many restaurants fail PT 2

My job is to make your restaurant more money. Your job is to read for 3 minutes and take ACTION 🚀

LEARN: Top 5 reasons restaurants fail (what to avoid) PT 2

DRINK RECIPE: HONEY, WHO’S GINGER?: A whiskey sour with honey and ginger

Let’s get into it.


The restaurant business is notoriously challenging, with a startlingly high rate of failures, but that’s not news to a restaurant owner.

Here’s a snapshot of the startling statistics:

High Failure Rate: A staggering 60% of new restaurants don’t survive past their first year.

Long-Term Struggles: Even more concerning, 80% of restaurants close within five years of opening.

These figures are a wake-up call for restaurant owners and aspiring entrepreneurs. But it’s not all doom and gloom. There’s a silver lining, and it’s this:

Success leaves clues. The failures of the past can be your learning ground. Mistakes are often repeated, which means they can be identified and avoided. Your restaurant doesn’t have to be another statistic.

Learn, Adapt, Survive, Then Thrive: 5 Reasons Restaurants Fail & How to Avoid Them

(PART 2 of 5)

This one is a hard pill to swallow, but working in restaurants for 20 years, helpinh open 25 restaurants and bars, and turning around dozens… this might be one of the biggest profit killers (and also the hardest to rectify).

BUCKLE UP.

2. Toxic Culture: A Recipe for Disaster

The Stark Reality: Much like the dramatic unfoldings on reality TV shows, the presence of toxic culture in restaurants isn’t just a minor issue; it’s widespread and deeply harmful to business. The common denominator? Poor management. But there’s more to the story.

The Root of the Problem: Many managers who contribute to a toxic work environment are not inherently evil; rather, they are often individuals caught in a cycle of power trips and ego inflations. Their primary motivation shifts away from enhancing the guest experience to asserting their dominance, ignoring valuable staff input, and prioritizing personal happiness over team success.

The Management Conundrum: True leadership in the restaurant industry begins with humility and a service-first attitude. Managers should embody the principles they wish to see in their teams, demonstrating that no task is beneath them and fostering a culture of mutual respect and shared goals.

Crafting a Positive Culture: The antidote to toxicity is active and inclusive management. This involves creating a cohesive vision for the customer experience that every team member, from front-of-house to back, is fully aligned with and passionate about delivering.

Systems for Success: Implementing clear, consistent systems across all areas of operation is crucial for maintaining standards, ensuring accountability, and preventing the erosion of workplace culture.

Empowerment and Engagement: Managers who actively involve their teams in decision-making, recognize their contributions, and openly seek their feedback on leadership are far more likely to cultivate a supportive and motivated work environment.

Eradicating Toxicity: Identifying and addressing toxic management practices is critical for a restaurant’s profitability, reputation, and team morale. This involves listening to and valuing employee feedback, ensuring managers are selected and trained based on their ability to lead by example and support their teams.

To combat and prevent toxic management, restaurant owners must prioritize open communication, employee empowerment, and a clear commitment to fostering a positive, respectful workplace culture. By doing so, they can transform their restaurants into environments where both staff and guests feel valued and appreciated, ultimately driving success and sustainability.

Stay tuned for PART 3!

Can’t wait? Watch the full video now.

IN CASE YOU MISSED IT, HERE‘S PART 1 FROM LAST WEEK….

1. Poor Leadership: A Major Downfall

The Reality TV Lesson: Shows like “Kitchen Nightmares” and “Bar Rescue” aren’t just entertainment; they’re cautionary tales. EVERY owner and manager in those are TERRIBLE, but there’s a reason..

Burnout and Lack of Belief: Many struggling owners and managers are simply burnt out and have lost faith in their vision.

The Owner’s Role: Success starts at the top. Owners must be driven, believe in their product, and have a clear vision for customer experience. Then..

Creating the Experience: It’s all about teamwork. Managers and staff need to be involved with ownership in crafting an amazing EXPERIENCE from the moment customers walk in until the moment they leave. The host, servers, bartenders, bussers, food runners, and kitchen staff ALL need to be in on this vision and step-by-step experience being provided. It needs to be crystal clear to everyone and what their part is. How do you get everyone on the same page?

Systems Upon Systems: Effective systems ensure consistency and accountability, from the hosts to the kitchen staff.

Involvement Breeds Support: When managers are part of the process and progress through accountability systems, they’re more likely to support and uphold the standards, driving motivation and accountability.

COCKTAIL HOUR

HONEY, WHO’S GINGER?

DESCRIPTION: A whiskey sour with honey and ginger /

Warm, sweet, with a little bit of spice. Perfect for winter.

INGREDIENTS:

Bourbon, Rum, Strega, Orange Bitters, Honey, Ginger, Lemon

How:

4 dashes House Orange Bitters (see below)

¼ ounce Spicy Ginger Syrup (see below)

¼ ounce Honey Syrup (see below)

½ ounce Strega

½ ounce Scarlet Ibis rum

¾ ounce lemon juice

1 ounce Elijah Craig 12-Year bourbon

Combine all the ingredients in a cocktail tin. Place a 2-inch ice cube in a double rocks glass. Fill the tin with ice cubes, cover, and shake. Strain the cocktail into the double rocks glass.

Glass: Double Rocks / Ice: 2-Inch Cube

*200 g Angostura orange bitters

200 g Regans orange hitters No. 6

Combine both ingredients and stir. Store in an airtight contines a rest temperature indefinitely.

MAKES 400 G

**

HONEY SYRUP (2:1)

350 g clover honey

225 g hot water

Brix: 60

Stir the honey into the hot water until it’s fully integrated. Let the syrup cool to room temperature and store in an airtight container, refrigerated, for up to 1 month.

MAKES 575 G

**

SPICY GINGER SYRUP

250 g ginger juice

250 g turbinado sugar or Sugar In The Raw

Brix: 50

To make the juice, run whole stalks of ginger through an auger or masticating juicer. Strain the juice through a chinois and cheesecloth or through a superbag, straining out the lighter colored starches that remain on the bottom of the container. Warm the juice in a medium saucepan over medium heat until it’s just under a simmer. Add the sugar and stir to dissolve. Let the syrup cool to room temperature and store in an airtight container, refrigerated, for up to 2 weeks.

MAKES 500 G


Use this simple strategy to make your slowest month, your busiest month!

I made a video explaining why Kitchen Nightmares is made for TV ratings and why it has such a high failure rate with the restaurants it saves. This gentleman took it personally. 😂😂😂

I’ll always tag my subject lines with this 🟢, so keep an eye out 😉

Looking forward to the next one,

Preston Lee

Founder of The 30 Percent Rule

Our mission is to transform dining experiences, optimize operations, and inspire culinary excellence, ensuring every restaurant achieves its unique vision and long-term success.

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