Ever wonder why some restaurants close their doors for good? It's not just about the food. From poor location choices to bad management, many factors play a part. Understanding these pitfalls is crucial for success in the restaurant world. Here’s a look at the top reasons behind the downfall of many dining establishments.
AUTHOR: Chris Phelan
Table of Contents
- 1. Not Staffing Properly
- 2. Offering $1 Beers
- 3. Pivoting Off-Brand
- 4. Presenting a Water Bottle to the Table
- 5. Not Putting Employees First
- 6. Adding Shady and Deceptive Fees
- 7. Giving the Customer Too Many Options
- 8. Offering Coupons
- 9. Rushing Diners Through Their Meals
- 10. TVs in Upscale Restaurants
- 11. Skimping on Ingredients
- 12. Nickel and Diming Customers
- 12 Things Old People Wish Were Still Around
- 12 Awkward Things You Should Never Say in an Elevator
- 12 Casserole Recipes You Don't Want To Miss
1. Not Staffing Properly
Adequately staffing a restaurant shift is all about balance. If you don't schedule enough workers, then customer service falters. If you staff too many, there's not enough work to go around, and service staff tips go down, leading to decreased morale. Not all guests notice proper staffing levels when it's perfect, but they can absolutely point it out when it's unbalanced.
2. Offering $1 Beers
On paper, offering $1 beers is a sound strategy to obtain new customers. Who wouldn't want to participate in the best beer special in town? Well, as one person describes, it can backfire. "A friend of my husband's owns a sports bar," one woman explains. "A few months ago, he offered $1 beers to drum up business. The place QUICKLY became overloaded with homeless people, and the regulars didn't like it and stopped going. The special didn't last long."
3. Pivoting Off-Brand
Making questionable decisions that don't align with a restaurant's brand and image can be costly. For example, a well-known craft brewery in Asheville, North Carolina, recently made a bizarre decision to extend their brewery hours from 11 o'clock to two in the morning, when they turn the brewery into a DJ-infused dance party. It is a confusing decision, to say the least, and it has not been popular among residents! Why turn a craft brewery into something it's not?
4. Presenting a Water Bottle to the Table
My hat is off to Denny's, who wins the award for the stupidest marketing decision of 2023. "The Denny's near my house has started putting water bottles on their tables," reports one woman. "There are no price tags. I don't even think I saw an advertisement for them; it's just a water bottle on the table. The idea was supposed to be that you saw it and wanted to buy it, but everyone just assumed someone had left their water and no one touched it. Even the waitress thought it was stupid." There must be a better way to entice customers to order bottled water.
5. Not Putting Employees First
Owners and management should always stand by their employees. Trust me, as a former restaurant manager, you live and die by your staff. If you treat your staff well, they'll never let you down. If they never let you down, they'll make great money, they'll tell anyone who listens about how great the restaurant is, and you'll see the profits come rolling in. Nothing is more enticing to a potential guest than seeing a staff working who loves being there!
6. Adding Shady and Deceptive Fees
Nothing can put a sour taste in a customer's mouth quicker than deceptive fees being added to your bill at the end of a meal! "A well-known cafe in Los Angeles charges a mandatory 15% 'management fee' to every bill," reports one L.A. resident. "This is not a gratuity for large parties, mind you. It's 15%, which does not include tax or tip! It's so shady and despicable." I would stop going to this establishment.
7. Giving the Customer Too Many Options
Nobody has the time to navigate through an endless menu. Not enough restaurants will keep their offerings concise and straightforward in 2023. "It's generally bad business to give the consumer too many options," reveals one man. "Like a sandwich place with 100 sandwiches on the menu. In reality, most are similar, with one thing subbed for another. It's confusing for consumers, servers, and the kitchen. It's annoying for everyone, slows turnaround times, and drives down revenues."
8. Offering Coupons
As someone with extensive management experience, I believe offering endless coupons to get guests in the door is the worst strategy ever. Not only are you training people to only dine at your establishment when offered a discount, but you are also turning off an entire customer base who now sees your restaurant as a "budget" brand.
9. Rushing Diners Through Their Meals
"Turning tables" is a common phrase in the restaurant industry that refers to getting diners in and out within approximately an hour of being seated. Some restaurants take this to the extreme, verbally reminding customers of their allotted time remaining. As a result, guests are annoyed and vow never to return because they feel they were unfairly rushed through their meal!
10. TVs in Upscale Restaurants
A common complaint among upscale diners is annoyingly loud TVs ruining date nights, business meetings, and special occasions. "I can understand TVs in sports bars, but for the love of spaghetti, leave them OUT of high-end restaurants!" proclaims one man. TVs are appropriate in two restaurant settings: Sports bars and barebones pizza places!
11. Skimping on Ingredients
Reducing food costs (while maintaining pricing) is a common strategy for restaurant owners. Unfortunately, it often means removing ingredients from existing items! "I worked at a restaurant for the summer back in college," recalls one man. "It was under new management, even though the cafe had been there for decades. The owner made a new rule to save money: We could only put one slice of tomato on the already-lame house salads that came with the meal. Those poor little salads looked so dismal."
12. Nickel and Diming Customers
We all know a restaurant or two that charges for everything. Whether it's extra sauce packets, sides of ranch dressing, or soda refills, no customer wants to dine at a place where they feel price gouged! Restaurants should present a value to customers that offers a fair alternative to cooking meals at home, and charging them for condiments is one way to lose them for life.
Source: Reddit.
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