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3 Costly Mistakes Restaurant Owners Make (That You Can Easily Avoid)

Were you born with an unrelenting entrepreneurial streak? Thinking about quitting your 9 to 5 desk job to open your own gastropub or neighborhood pizza joint? If so, kudos to you! While you’ve probably heard anecdotal stories about how it can be challenging to build up a loyal base of patrons it is, in fact, entirely within your reach.

While it may not be easy for some, you shouldn’t let others dissuade you from following your dreams of owning your own business. By doing plenty of research before opening your doors and building a solid business plan, you can cultivate a successful, profitable and highly satisfying commercial venture.

In addition to gaining the basics of restaurant ownership from books and workshops, you can also learn from other business owners. If you’re new to the restaurant business, here are some of the most common mistakes that even the most seasoned restaurateurs can sometimes make (and ones that you can easily avoid).

If you’re ready to become your own boss, here are three strategies you can use to develop a new restaurant, protect your financial investment and forge a new culinary career.

(1) Be diligent about being different.

Ask yourself if your restaurant is fulfilling an unmet need in your community. It’s important to think about your business from the perspective of your prospective customers. Why should they choose your “product” over the competition? And, the idea of being unique doesn’t have to just be about what you put on the menu. Maybe you want to offer best-in-class customer service or beat the competition on price. (And, by giving people a good reason to stop by, you can attract customers by word of mouth and save money by advertising less.)

(2) Invest in your people and build an exceptional culture.

One of the unique aspects of the restaurant industry is that customer service and satisfaction can often make or break your business. By hiring and developing the best, you can build a healthy and positive workplace – with a positive staff more inclined to treat customers well.

(3) Ensure that you are adequately insured.

When you’re starting a new business, you’re probably very well attuned to cash flow. But, never underestimate the power of the unexpected. If you’re the owner and operator of a business, think about the scope of insurance that you need to protect your investment from flood, fire and property damage.

Insurance for Restaurants

At John Bailey Company, we know that commercial insurance is one of the most important investments you can make as a Knoxville business owner. In fact, it may even mean the difference between sinking and staying afloat should damages or a lawsuit occur. Specializing in custom insurance packages tailored to your restaurant’s operational needs, John Bailey Company handles risk management so you can focus on your patrons. Contact us today for a restaurant insurance quote, we promise a 24-hour turnaround. Call 865.524.0785 or email brandon@johnbaileyco.com.

Question or Comment?

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