Originally Posted by Andy M.
I have heard the failure rate for new restaurants is in the the range of 90%.
Sometimes a great chef is a bad businessman.
You are so right. A very good friend of mine was the personal chef to Donald Trump. He was making $250,000 a year!
When the time came to re-new his contract, he said no and went in business for himself. In his restaurant he had pictures of all the great people he cooked for. Presidents, celebrities, sports players, and yes, Donald Trump.
He was in business for about 10 years. Everyone thought he was doing fine. Then one night he burned the place down. Now he lives in Italy because he knows that if he comes back, he is going to jail. turns out that business was only good for the first 3 years or so. He started going on long vactions and letting his business fail. He tried to rebound and borrow some money but by then the business already had a bad name. He could not recover.
My point is that no matter how good you are, business can always go south for whatever stupid reason, but you have to stay on top of it. This I think is the main reason so many restaurants go out.