Closed for Renovation aka Closed for Good?? New Restaurants/Pubs Don’t SUSTAIN for Long in Mangaluru
Closed for Renovation aka Closed for Good?? New Restaurants/Pubs Don’t SUSTAIN for Long in Mangaluru. Poor Location, No Ample Parking, High Rent, Employee Stealing, High Maintenance and Utility Costs, Lack of experienced staff/Shortage of staff, Complex Menu, No Reporting & Analysis, No Serious Involvement of the Owner in the business, Lack of Marketing & Publicity etc are some of the MAIN REASONS for restaurant business failure and shut down.
Mangaluru: Never knew that 16 December 2019 would be the last time I would have a steaming Idli/Vada and a Benne (Butter) Dosa at Konark Vegetarian restaurant on Airport Road in Yeyyadi, Mangaluru- because when I visited the restaurant on 7 January 2020, there was a huge banner hung stating that “Shri Shankara Bhavana’ a pure Mangalorean style vegetarian cuisines restaurant will be opening soon. I was shocked, mainly for the reason that Konark restaurant which started in Bengaluru in 1985, and has been serving its Bengaluru customers for nearly 34 years, was not able to serve Mangalorean veg food lovers for not even a YEAR? Too SAD and Too BAD!
Konark restaurant is not the ONLY new restaurant that shut its door within a short period of time, there were many other restaurants and pubs in Mangaluru that couldn’t sustain for long- to name a few- Kobe Sizzlers, near Balmatta junction; Grand Rasoi near Highland hospital; La Goa-a Goan food restaurant in Shivabagh; Martin’s Fine Dining near Jeppu Seminary; Khasak-the legend of dining near Hat Hill; among many others. And some of pubs/Lounges closed down in a short period of time are- The Last Stop in Forum Fiza Mall; G 6 and Zouk Retro Bar-Valencia, Cafe Mojo in Hotel Gold Finch, among others. When a sign is hung stating “CLOSED FOR RENOVATION’ after the restaurant/business was opened for few months or a year- it is 100% clear that the business is not closed for renovation, but couldn’t succeed and therefore CLOSED FOR GOOD?
It is should be noted that ever since demonetization/GST and other crappy rules were introduced by the present Central government, almost 60% of all restaurants shut down within the first year of operations, and up to 80% of restaurants close their shops in after few years in business. No matter how lucrative the restaurant business seems from afar, running a restaurant business is a herculean task, these days These figures may make you think, ‘Why Restaurants Fail’ that too ever so often. Lack of proper information of what the industry entails ultimately leads restaurants to their failure. Most restaurateurs do not even know that they are doing something wrong until it is too late. I don’t mean to discourage aspiring restaurateurs out there, or to lower the morale of the current ones, but I do believe that prevention is better than cure.
So why are the simple restaurants still exist in Mangaluru, while the new ones are closing down? One thing for sure is that the owners of the new restaurants are spending big bucks on infrastructure, interior glamour and fancy facilities, and when they start an eatery business, they don’t look whether there is a proper parking facility- because Mangaloraens will never walk a few meters if they don’t find a parking spot very close to the restaurant. It’s a fact! Well, other multiple reasons why restaurants fail. Poor location, high rentals, and their own inexperience can push their restaurant cost up because of which their restaurant can end up failing.
When the owner or his family members are not at the cash counter, then you are talking about yet another loss of business through stealing- and I have seen right in front of my eyes, the cashier’s or servers looting money Also lack of owner’s involvement, internal thefts and poor allocation of resources are reasons which are often overlooked when considering why restaurants fail. Poor staff handling, lack of reporting and poor marketing also top the charts when it comes to reasons for restaurant failure. In short, the top reasons why restaurants fail are:- Pilferage and Thefts: Internal thefts and staff embezzlement create gaps which restaurant owners can track only a little too late
Poor Location and High Rentals: You may be located too far from your target audience, or your ideal location may be draining your pockets dry. Either way, it means fewer profits, running into losses and ultimately shutting down. Just look at the eatery joints at the three malls in Mangaluru- many have shut down their doors due to high rent and low customers. Poor Customer Experience: If your customers are not enjoying coming to your restaurant, it is only a matter of time before they stop coming to you altogether. Also, the owner’s inexperience can lead to mistakes that can cost you more than a couple of customers.
Poor Staff Management: Shortage of staff or non-experienced staff or if the owners are unable to manage their staff, it will lead to bad customer experience, an increase in costs and overall dysfunction. Also if owners do not give enough attention to how many resources they need to employ in different segments of their restaurant, it will lead to mismanagement and losses. And I have seen in many restaurants and pubs in Mangaluru, there are way too many employees, which is not required- sometimes you see more servers than customers?
Also, the menu should be simple- A long all-encompassing Complex menu may sound like the right thing for the restaurant, but it will only confuse the customers and hinder profits. My experience at quite a few eatery places in town, even though the menu has a vast array of items, but the one you prefer to have, you won’t get it.
And this one is killing the owner and restaurant BIG TIME- No Involvement Of The Owner: If you leave all your operations to your staff, your restaurant will not be able to grow and will ultimately shut down. Stealing by employees has killed the business owners and no doubt about it. Like I have seen, there is one veg restaurant in town- Janata Deluxe, you will never find the staff at the cashier other than family members of the restaurant. Hope I am 100% right.
Sources reveal that- No reporting and Analysis: If you do not study your restaurant performance and have no tool that can tell you what your performance stats look like, you will never know what is working and what is not working which will ultimately cause a shutdown. Also Marketing the restaurant is as essential as preparing good food or giving a great customer experience. Failure to market the restaurant right will make owners lose out on customers. This is a massive blunder that most restaurateurs make and is one of the biggest reasons why most restaurants fail. I have seen it- the owners spend big bucks on infrastructure, interior posh decor, fancy facilities etc, but are very reluctant to spend a few bucks on publicity or marketing.
Restaurant owners should set aside a budget for marketing right from the inception of your restaurant. It is also a good idea to hire a digital marketing agency to run online marketing campaigns for your restaurant. This restaurant marketing manual would come in handy while devising the marketing strategies for the restaurant business. A lot of planning and strategy and immense hard work go into executing those strategies for running a successful restaurant.
When it’s very much known that managers or other staff who were given full authority to manage the restaurants or lounges have now started their own restaurants or pubs, therefore the owners in future need to be very alert and keep an eye on their employees. It is the sad truth that aspiring restaurateurs often forget: the owner’s involvement is crucial to the restaurant’s success. Investing just your money into the restaurant, and depending completely on the restaurant manager can often turn out to be fatal. How to avoid: You need to be aware of your restaurant business, down to every detail. All the details, from sales reports to inventory reports, must be evaluated every day. Mobile reporting and analytics allow restaurateurs to keep track of their restaurant business from anywhere, anytime.