I’m sad to report that the restaurant that I have written about in the past has closed it’s doors. Just when success seemed to be within his grasp, the owner decided to call it quits. After losing another round in an ongoing battle with the city over a noise ordinance, he decided that it wasn’t worth the trouble, and that the city would never allow him to run his business the way he wanted to run it.
I understand both sides of the issue: The owner wanted the noise ordinances applied equally to all of the restaurants in the city (it’s not), The city wants to be able to apply more restrictions on businesses taht are located closer to residential districts.
Bottom line is, the failure was the owners fault.
I wrote in my post Top 5 Reasons Most Restaurants Fail, you gotta know the territory. The owner of his restaurant knew that there were special variances put in place to allow him to open up his restaurant where he did. He knew the rules, but thought once he got his doors opened he would be able to convince the city to change the rules. That wasn’t the case. He had the option to turn down the music, and focus on the restaurant, which was beginning to build a good reputation. Instead, he decided to focus attention more on the bar side, and allowed his frustrations to get in the way of running a successful business.
I’ve said it before, you have to do your homework. When starting a restaurant it is absolutely critical that you understand fully what you’re getting into. You have to do your research into the market, the location, any rules or regulations that could affect your business. Knowing that up front will allow you to either make adjustments to your business plan, or find a new location.
He chose to ignore the realities of the situation, and it cost him his business.
I liked the owner, and I really wish he could’ve succeed this, but he chose to take on a battle he could not win.
There’s a lesson to be learned here; do your homework, and know what you are getting into. Starting a restaurant is risky enough without taking unnecessary chances. You can succeed in his business if you know what your getting into and make smart choices.
I wish the owner the best in whatever is next for him, and hope that whoever moves into this location has better luck succeeding.
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3 responses so far ↓
1 Entrepreneur // Mar 17, 2008 at 12:28 am
It’s all about what you learn from the failure. Restaurants have the highest fatality rates for start-ups. Are you free to tell us more specific details on why it failed (the numbers side)?
2 Jim // Mar 17, 2008 at 8:45 am
It wasn’t so much a numbers issue as it was a “spirit” issue. The city was not going to allow him to run the business the way he wanted to run it, so rather than focusing on building what he had, he gave up.
There were laws in place before he opened controlling the sale of liquor, and trying to avoid “bars” from moving in, and that was the side of the business the owner wanted to focus on; more so than the restaurant side.
3 michael mata // Jul 20, 2008 at 9:18 pm
i can use N-E info that you may have to help me better start and keep and expand my business’ THANXZ!
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