Another New Restaurant Start-Up Misses Mark

Filed Under (Costs to Start a Restaurant, Marketing a New Restaurant, Menu Development, Planning a Restaurant, Running a New Restaurant) by Larry on 14-08-2009

As most restaurateurs do, I visit new restaurants that move into our operating area.  I am particularly partial to independents who are following their dream. The challenges of opening a new restaurant are great, but I know its rewarding to see a new face walk in the door in the early stages.

In this particular case the new restaurant is facing steep odds. They are serving Cajun style PO Boys and sides in mainly a quick take out format. They are located on a main thoroughfare in a suburban city center. There is some walk by trade. The footprint is small, about 600 square feet. Their overhead should be relatively low.

The food I ordered sampled four different items. The quality was above average. Service was a little slow even though I was the only customer they had right after they opened at 11 AM one morning.

As most restaurant owners do, I silently watched as my food was prepared and viewed the equipment, atmosphere and process to prepare the order. I can’t help myself from assessing the survival chances of this new sub shop. It’s a bad habit, but the mind has a will of its own that can’t be denied.

My assessment is that they will serve a product we typically call “good food”. I am sure the new owners consider this assessment accurate (what new restaurant owner doesn’t?). Unfortunately, they ignored some basic key elements to give themselves a chance to make it in an industry that has an 80 or 90 percent failure rate. Their weaknesses include:

  • Parking. They have about ten spaces shared along with a half dozen other tenants along a busy street. Any other parking available to them was a block away or across a four lane busy highway. Remember, this is a carry out operation with only two tables and eight seats.
  • Service cycle. My 15-20 minute wait went quickly due to natural instincts wanting to assess everything. However, a second trip would not be so forgiving. Also, how would they fare if there were two or three customers at the same time that morning. People go to carry out locations for speed and convenience. They will have neither if they expect enough volume to grow sales.
  • While the restaurant was sparkling clean and new, the ambiance was non-existent. They are trying to present a Cajun theme, but a couple of pictures on the wall doesn’t do the concept justice. There are so many inexpensive options for a fun look using back bayou decor. Waiting for “good food” alone won’t keep the customer occupied.
  • Other little factors included a small selection of cold drinks, few retail items off the menu and limited description of the food on the menu.

Can they change and recover from these negative elements? Most are quickly correctable. The one that is impossible to correct without some major construction in the whole area is parking. You can’t overcome a bad location. It makes no difference how good your food is or how quick you serve people. If they can’t get to you, they will go down the street to McDonalds when speed and convenience takes priority over superior food.

I hope I am wrong. Time will tell.

In the

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