Restaurant secrets: Hotelier Sanjeev Nanda discusses three mistakes that lead to failed restaurants

Hotelier Sanjeev Nanda discusses three mistakes that lead to failed restaurants

Restaurant business is undoubtedly the most competitive and the most profitable business of all times. And yet we often see restaurants permanently pulling down their shutters within a short period of starting their operations. Ever wondered why? Renowned hotelier Sanjeev Nanda talks about the three mistakes that can prove to be fatal for a new restaurant, and how to avoid them. Take a look:


  1. Poor choice of location


While choosing the location for a new restaurant, many people fail to factor in the parking space, accessibility, visibility, etc. According to Sanjeev Nanda, these factors, along with the presence of urban commercial or residential population within a one-kilometre radius plays an important role in determining the success of a restaurant. If the location scores low on any of these parameters, a restaurant owner must decline whatever ‘steal deal’ they are being offering.


  1. Absence of Standard Operating Systems (SOPs)

SOPs are the rules laid down by restaurants and eateries to ensure that the business is run professionally with clear directions to the staff. Daily tasks are scheduled in such a way that no matter how many times the chef leaves in a day, the kitchen continues to run seamlessly. The food is served in a pre-determined quantity, with a pre-determined set of accompaniments. This consistency in operations is what draws the customers back to a restaurant over and over again. Failure in maintaining this consistency is one of the most common reasons behind a decreased footfall, says Sanjeev Nanda.


  1. Wrong choice of concept

While conceptualizing your restaurant’s offerings, it is important to keep personal likes and dislikes at bay. The restaurant is meant to cater to the taste of the customers, not to that of the managers, chef, or the owner. Try to fill a niche that is still empty and create a menu that delivers just that. According to Sanjeev Nanda, creating a large menu only to have half of the listed dishes ‘unavailable at the moment’ is a business-killing move.


If you are planning to start a restaurant or eatery of your own, steer clear of these pitfalls and watch your venture grow strong and successful day by day.