Why 60% Restaurants Close In 1st Year Of Business

Why 60% Restaurants Close In 1st Year Of Business

Many people had come up with a thought of opening their own restaurant at least one in a life Sometimes we fail to open the restaurant because of some circumstances or sometimes the restaurant didn’t work well Some people also think that restaurants are a source of passive income. The money will come automatically after opening that If I tell you the fact that 60% of restaurants closed in their first year 80% of restaurants closed in their first 5 years So in this video, we will talk about why this thing happens and how to market your restaurant. So if you are a restaurant owner or thinking of opening it so watch this video till the end. First, let’s talk about why most of the restaurants fail Location is the most important factor Restaurant owners fail to choose that location where people like to come There are some restaurants which are located in the streets but still, people go there because those restaurants are famous now But you are new and nobody knows you so you need to open your restaurant where people usually comes and try out your recipes. So location is the most important factor for a restaurant. another thing is which type of cuisine you are going to offer l If you are thinking of selling Chinese, Italian, Burger or something else than location should be suitable for your food So always choose the location according to your food. For example, if I am going to sell any foreign dish so I wouldn’t go to any local area. So always choose the location wisely The second most important thing is restaurants owner thinks it is a source of passive income and because of that they don’t do hard work One thing that you need to understand is you have invested the money so you need to work in your restaurant and nobody can understand your business better than you. So the restaurant is a type of liability business. It’s not like you open the restaurant and will start to make money from the first day In order to make it the source of passive income, you can start the franchise model and chain model but for this, you need to work hard to make your restaurant full-fledged business. The third reason is management is not that good As you know as an owner you can’t be available at the restaurant all the time. Suppose you expand your business to 50 restaurants so you can’t be available everywhere, right? So for that, you need a good leader who can manage your restaurant whenever you are absent and this is necessary fI you don’t choose a good leader then he won’t be able to handle all other employees and will lack good leadership qualities due to this thing employee will be left your restaurant soon and then the thieves will start and things like this will keep happening. I personally saw this thing in my life to many restaurants owner the next thing is customer service Customer service means they came to your restaurant and everything is fine the food, price everything is OK but your communication is not good or your behavior to your customer is not acceptable. For example sometimes what happens is you gave your customer burnt food and he started complaining but instead of listening to him you are avoiding him So due to this, the customer will spread negative word of mouth and at the end, you will get a negative response from the market For this, we have to build a feedback system. I am giving you a link in the eyeball for the video I made on how to build an impressive feedback system in the service industry. Next, the biggest problem is the accounting problem Most of the people don’t know how much money I need to start or run my business for the next 8 months or 10 months until it becomes profitable. people just consider the one-time investment and don’t think about the extra cost They just have one lakh rupees extra which they don’t want to spend in initial days so because of this they don’t spend on marketing, additional dishes, and staffs which is required And due to this thing, only a few audiences will come to our restaurant because we have already skipped so many things. Less audience means fewer sales and automatically restaurant will be in loss and unfortunately, it will be closed soon They are not good at accounting and this is one of the reasons why many restaurants failed They didn’t do calculate properly about how much time and money do they need to run restaurant It will easily take around 4-6 months for any restaurant to become profitable So you need to calculate the expense for 6 months and you should have that amount of money In the last video which was about the business revenue model, I have talked about all these things like how to do proper calculations and accounting. I also provided you an excle sheet where you can calculate by putting the values The second calculating mistake people do is they don’t calculate the proper costing of their product which is a bad thing You should know the exact cost of your product or service whatever you are selling and if you don’t know so don’t do that business In big places, some people do reverse calculation They calculate like how much sales do we need to earn a certain profit on behalf of that stats they set their daily sales target So you also need to set a daily sales target like 5k or 10k etc. If the target didn’t achieve so you can also run some offer to achieve that offer. we will talk about that thing later Next problem related to finance is which I have seen in many restaurants that they usually hire unnecessary staffs. According to me if any of your staff is waiting for work so it means we don’t need that worker. So there is no need to hire extra staffs because if you do your overall expenses will be high and ultimately you will be in loss There was a restaurant which was located nearby my house and their food was good but it was expensive because due to unnecessary staff overall cost was increasing So the point is we shouldn’t hire extra staff unless it required For me and for the majority of the people taste is the biggest factor Without taste, you can’t expand your business Instead of sell, every food item sells a few ones but it should be tasty. So good taste is a mandatory thing because In initial days try to sell only a few things just focus on one or two foods dishes and then try to increase more food items according to your specific industry Don’t ever try to compromise food taste because of the price. Nowadays people are ready to pay the extra price for food but the taste should be worth the amount For example – as well all know chole bhature of Delhi are famous ew time ago the price o chole bhature was around 20rs but now many sellers are selling for 60-70-80- rs and still are in profitable just because of the taste and hygienic good There are many people who are adding paneer and cooking their dishes in different cooking oils so it is up to you But my point of view is never compromised with the taste you might become cost leader by selling more units at less price but you can’t stay in the long term by doing business in this way But if you want to become a brand in the food industry you have to offer delicious taste in your food now come to the main point and that is marketing


  1. Sagar Thakur says:

    I am not fully agree with you.you have half of half knowledge about hotel business.plase i dnt want demotivate you but grow your experience and practical knowledge in it otherwise your advice will be one reason for winding a restaurant. Thanks….


    Truly and kuch logo ko samjhane kelia bahat achhe se bataya aapne.

  3. bruh25878 says:

    He told 7 sabse zyada important chiz…

  4. RAVI DHYANI says:

    Nice analysis

  5. Frantastic Franchise says:

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  6. O.N.E NANU says:

    Thanks brother your video is useful for me

  7. Rich Hero says:

    how to do guerilla marketing for restaurant business ??? please tell

  8. Sarim Ali says:

    Sir mera restaurant pr in sab cheezo ka dhyan nhi rakha or ab restaurant band hai

  9. Sandeep Dixit says:

    sir dosa restaurant kese start kre ?
    please tell me overall about dosa restaurant.

  10. Paras Manik says:

    Please let me know that how & from where we can hire good chef for a new restaurant?

  11. Ali Naqvi says:


  12. Gattoo Khushalani says:

    PLS REPLY OR WHAT'S APP ME 9920388068

  13. gaurav sharma says:

    Saahil bha kya baat kahi aap ne. Ki aap paapi ho. 😂😂😂

  14. sandeep dobhal says:

    Bhai app to barbeque nation wale ho , food is ur passion.

  15. Koushik Mullick says:

    Mein nahi maanta, without food quality and good taste it’s impossible to run a restaurant

  16. Ashish Pingle says:

    Sahil bhai khali lecture de rahe ho..kabhi khud restaurant chalaya hai kya??motivation speech dena bahot aasan hai..bhai hotel chalana hai to gutter bhi saaf karana padata hai..bartan bhi saaf karane padate hai..khana pakana. padata hai..mai aur mera bhai milake mumbai me char restaurant cum bar chala rahe hai..woh bhi rent pe..puri life sacrifice karani padati gai..chutti nahi le sakte..picnic ko nahi ja sakate..family ke sath..mall me ghumane nahi ja sakate..saturday aur sunday ko double mehanat karani padati hai..eak restaurant chalke dikhao…sab samaz me aayega..

  17. Amit Kumar says:

    Ghanta sale… Tujhe kuch nahi pata. Blogger bane firte hai

  18. SHUBHAM FUTANE says:

    Gordon Ramsay jis bhi Hotel mein gaya
    Saare Workers hata dega

  19. Arjun Vaid says:

    what about Mughali and tandoori take away. Make a video on same

  20. santosh das says:

    Super b yaar you are genious

  21. gaurav agarwal says:

    Bhai fast food or restaurant frienchies kaise start kare… Video bano ne..

  22. Bibin Thampy says:

    Life should be be purposefull..then only we will be succeed.whatever we do.

  23. Vasi Ahmed says:

    Dear Sahil, This is Vasiuddin From Hyderabad , I'm planing to open one restaurant on Terres So Can i get Expenses Excel sheet for startup Restaurant business. So that it will be help full to us. i am watching all your videos but i din't find any excel sheet.

  24. Rudrakshya Barman says:

    Can you please make a video for software business.

  25. Sonu Gour says:

    Right sir absolutely
    Bcs but human beings thing
    So one time invest karodo or fir passive income ganrete or loo

  26. Ashik Sardar says:

    Sir franchise process k upar ek video banaiyye. Mera business franchise dena chahate hai keise hoga. Like any big company like MacDonald, kfc, mia amore, wow momo. Keise franchise dete hai and manage keise karta hai. E video banaiyye

  27. ok k says:


  28. Malik Ehsan says:

    Love you

  29. Mujibsk Rahman says:

    Testy or quality agr aa6i ho toh location ki koi farak nhi pdta

  30. ashish badola says:

    Sir me apna restaurant suru krne ki Soch rha Hu Rishikesh me Esme kitna khrcha aa skta hai ek small restaurant kholne me plz help

  31. A J says:

    👍Good content ! Audience or customer ?

  32. Sudhan Diary says:

    please close your channel

  33. SAIRA KHAN says:

    Me Kholna Chati hu Rasturent agra me.but accha stuff NH MIL Raha.

  34. Lost Soul says:

    I Want To Run A Restaurant Specially For Pizza And Chinese in My City..There are 2-3 Famous Places for the same the city which serve these and they located at right Place

    Now its challenge for me to Open My Restaurant In Posh Areah Where other Estblished Restaurant there but the problem is that Cost of Rent or Land is So Much High these..For A Mid Size room..Average Rent goes Upto 30-40k
    So it create problem as conjusted area and No chance to expand the area of Restaurant

    I Am confused what to Do..

  35. Pharuk Meer says:


  36. Sagar Chandrakar says:

    Majbuti ka naam mahatma gandhi..!!🙏🙏

  37. R J says:

    Location ka problem raydi laga kar solve karlo , duniya mein badhe se badhe chef , chuninda location with technology , exotic food , drinks , fail ho jate hain , Guy Fieri , Food channel ka star , he closed down 3-4 of restaurants in prime location like Vegas , most of the celebrated chefs including Ramsey , Flay , Emeril , Batali , Hard rock cafe .. name it , it is not easy to run a restaurant, its expensive to hire people, overheads on top of it customers complain , want freebies , duniya ka sabse bada restaurant chal raha with more than 5000 location since 50's, all over the world .. the restaurant that changed how we eat … Ray Crock .. u tube mein iss adami ka kaamal dekho , Macdonalds , aur iss ne Macdonald brothers se kharida tha , the 1st restaurant in San Bernadino , California .. The Golden State ..

  38. Mr. Perfect says:


  39. Naina Vaswani says:

    Thank u so much. Ye information dene ke liye because mera future plane bhi Restaurant kholna hi hai thanks again ye valuable information dene ke liye………sir……

  40. SID says:

    food is one of the rare things people take risk and try

  41. Shatabdi Das says:

    Very Helpful vedios

  42. Deshbhakt Hamesha says:

    Bhosdi ke b.tech karke youtuber ban gya 80% b.tech wale berojagaar ghoomte h kyu 😃😃

  43. santosh chindarkar says:

    Very well information

  44. Prashant Gadhwal says:

    Bhai departmental store kaise start kare and other store see kaise compete kare

  45. मेरा भारत महान Yadav UP 86 says:

    But jo bhi. Karne se hota hai

  46. Pratham Majhi says:

    Sir, Kya main road par restaurant kholna sahi hoga, but location agar market area se dur hai? Reply please…

  47. Amolika singh says:

    I started a restaurant in d main junction, in Bangalore. It's been 3 months, . All kinds of marketing is done, food is good, feedback is good, person who comes, he r she repeatedly comes again, but new walkin r v less.
    N jus opposite to my restaurant , there is v small, diggy street hotel, I never thought it will be computation for me, but now I can see, even the affordable man goes to have 60rs biriyani there. 40 fried rice there. D crowd is more there, than my restaurant. I have maintained taste, quality n every ambience. But I'm failed

  48. Asad Fahad says:

    Or commerce bhe chahiye management krna atta nhe hai bahut log ko

  49. Sumitk Batalavi says:


  50. Shankar Singh says:

    Kisi ko restaurant, cafe, diet cafe, moctail bar kholna h to contact me 9760606016 m hospitality food consultant

  51. Vikram Kokate says:

    Thank you sir

  52. Vihaan Mehta says:

    aaj bhi 25rs ke chole bhatoore aajate hai delhi me8n👍👍👌👌

  53. pardeep rana says:

    sir mera bhi resturent hei Goa me. Punjabi cafe ke nam se. kabhi ak test kr ke dekho

  54. youngtrendz.in says:

    Nice content great information

  55. Rakesh Yadav says:

    Dear dusro ko sikhana bahot asan hai khud kro business or dikhao, apna talent, okay,
    Take care bro.

  56. Mukul Chauhan says:


  57. Tabish Zafar says:

    Assalam o Alaikum
    Great bro.

  58. mysti says:

    First is location and second most is to have enough capital estimation and plan to execute.

  59. mysti says:

    First is location and second most is to have enough capital estimation and plan to execute. Manageable rent. Marketing budget is a must.

  60. mysti says:

    First is location and second most is to have enough capital estimation and plan to execute. Manageable rent. Marketing budget is a must.

  61. mysti says:

    First is location and second most is to have enough capital estimation and plan to execute. Manageable rent. Marketing budget is a must. Funds for first six months to reach breakeven

  62. Sreekumar Khuntia says:

    Sr how manage a restaurant chain.

  63. mohit raj says:

    Mere Restaurant ko avi 1saal hue h. Bc staff manage krna sabse tension ka kaam h specially jab saalo ko achi salary dene k baad v kaam mai irregularities kare

  64. Technical master says:

    Sir mera bhi ek restaurant hai daily 60000 to 120000 net profit

  65. honey sodhi says:

    90% restaurant staff ki wajah se close hote hai
    Isliye khud knowledge lo cooking bhi honi chahiye taki staff chutiya na bna sake

  66. Dipendra Music says:

    What the fuck haha 😆 Are vai her McDonald ke shop per McDonald’s ka Malik hey kya????her dominoes ka shop per domino’s ka malik hey kya

  67. MovoCode Limited says:

    Best free Hotel Management Software – Hotelzo by MovoCode https://youtu.be/keReJpKQIjk (Official Version)

  68. Vijay Nanavare says:

    Veg restaurants near Mumbai Pune Highway

  69. Dhiraj Nayak says:

    Because of Modi and his stupid economic policies. #gawar

  70. Chetan Sharma says:

    Bhai bhature chole nahi,
    Chole bhature😋

  71. shama khan says:

    Me ek ladki hu but mujhe hotel open karna he aur me female ko lekar kaam karna chaheti hu tu please mujhe bataye kiya ye me kar sakhu gi
    Cooking me khud karo gi
    Aur sare sarvi wale mere ghar ke log hunge
    Kiya me kamiyab hujao gi

  72. Aveg Goyal Vines says:

    Aap indore k ho kya?

  73. ashvani kumar says:

    बहुत बढ़िया भाई

  74. rabinder rathouer says:


  75. Kuldeep Parmar says:

    You are right

  76. Athhar P M says:

    Very low voice

  77. manne prabhudas says:

    Bahiya hame naya restaurant kolatha 15 days hogaya…Taste acha hei but aur kuch tips haitho bolo naaa

  78. Harry Mayer says:

    sir bhut dino baad video dali hai jaldi video laya kare . like like like 10000000 like

  79. GK Gautam says:

    💕 from Nepal

  80. ARIJIT SHAOO says:

    Passive business which?

  81. yoyo Naresh Banna Chouhan says:

    Agr koi restaurant chalu krna Chahta he to experience staff ki jroort ho ya partner to contact number 7984926430 Naresh

  82. sanjog ghimire says:

    how many business you own?

  83. Hemendra Kumar Varshney says:

    Sahil, your observations are really good. Appreciate your work and sharing.

  84. Sandeep Sharma says:

    Last Wala bhi bol dete na

  85. Sonu kumar says:

    Hello sir..cafe start krna h .samjh ye ni araha h franchise lo ya khud k open kru aap bataye

  86. ॥ संदीप सिंह लोधी ॥ says:

    Nahi ye nahi bolna😂
    Sahi hai

  87. Krishnajin Bhattacharjee says:

    Stuff kaisa bhi ho ..manager intelligent honi chaiye tabhi toh aapna yeam khud choose karega..aur jitne team members honge unke pure salary ka 40% manager ki salary honi chaiye ..uss hisaab se budgeting karni hai,, employee rakhni hain..tabhi to dhanda majbut hoga. Salary structure is so important like deciding the price of some products.

  88. limbo stage says:

    Content from watchmojo

  89. Food Street Rider says:

    Sahil bhai kamaal ho yaar … aap ke aksar videos pakistan ki market par bhi match kartay hein dost .. keep it up

  90. Sunil Paudel says:


  91. Rishi Shetty says:

    I am planning for a small cafe in Navi Mumbai + Vashi area.its like a work cafe . Investment will be 20 to 25 lakhs . Anybody interested to be a sleeping partner .do reply

  92. Sonu sharma says:



    Madwadi ke bacche Ko business karna mat sikha
    Khoon Mai business hota hai
    Koi bhi business kar sakte hai

  94. Preet Patel says:

    Koi bhi business mein qualitiy imp.hai

  95. Ashiwani Garg says:

    Nahi ata kuch bhi mat bol

  96. Shridhar Mali says:

    Billing software
    Mo 9975951415

    Android application development

  97. Brajesh Kumar says:

    I have seen one restaurant which closed as there were way too many customers than he could cater to. The customers got fed up with hours of waiting time and restaurant closed in few months of it's opening. It had everything, professional chefs, most modern gadgets, upbeat menu, very good taste, substantial seating yet not enough, and it closed down.


    Good job. Great effort. Very useful information.

  99. NightCrawller says:

    Staff and rent!

  100. Dnyaneshwar Gore says:

    Good information
    I run Restaurant since 1986

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