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John Hurley

Small section of the food selection in Mediterranean Delite.

Restaurant obstacles in the Bay Area

More than the majority of the restaurants in the Bay Area will more likely fail their first year, and nearly 80% of the restaurants in the Bay Area will fail in their fifth year of running their business, according to search engine optimization (SEO) content marketing writer Joshua Weatherwax.

There are many reasons why restaurant businesses are more likely to fail; details include the location, employment, and increased prices. There are other factors along with this, such as employment and whether the employee will put the effort to put in their job.

Restaurant managers who start out running their restaurant business do not know what right or wrong action is due to their lack of experience. Nine of 10 restaurant managers typically start as restaurant owners, according to the National Restaurant Association. Owners are typically people who run everything of the business and may not always be inside the physical space, while managers are people who manage the business and do not take care of the financial aspects of the business. Managers are employees and are essentially the assistants of the owner who take care of payroll and take care of supplies.

John Hurley

 To provide the customers’ best experience, restaurant owners have to spend money on the restaurant’s atmosphere to make the customer feel welcome and give them the best experience. But renovation is not cheap, depending on what part the renovation takes place, it can range between $60 to $250 per square foot depending on the quality of the material used to renovate. On top of refurnishing, there is also have to rent the restaurant from the landlord for a high price averaging around $48 square footage per year depending on where you run the restaurant.

The location can heavily impact a restaurant since some cities have higher rental costs along with the type of customers there might be. The customers in San Francisco have places to be and are heavily crowded compared to the San Carlos area where the neighborhood is quieter with patient customers. 

“There are many things to take into account when choosing a location. You will need ample, accessible parking, your restaurant needs to be easy to find, and your location needs to serve an active population,” Weatherwax said in his blog, Why do restaurants fail? 

Employment is a big struggle for many business owners since the business needs to rely on employees to show up and perform their tasks consistently and efficiently to provide good orders for new and old customers, traits that are not guaranteed with every hire. 

Ultimately, even successful businesses deal with many of these challenges. Managers from the local restaurants Mints and Honey, La Corneta, and Mediterranean Delite have detailed their struggles and experiences

 

 

San Carlos’ La Corneta
Mediterranean Delite
Mints and Honey

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