Your restaurant is growing and doing well. You begin to hear of several restaura
ID: 2657746 • Letter: Y
Question
Your restaurant is growing and doing well. You begin to hear of several restaurant closures at businesses nearby. You and your staff would like to see continued growth at your business so you decide to do some investigating. For this assignment you will research the failure rate of restaurants in the U.S. Use at least 3 different electronic sources to find:
Percentage of restaurants that fail within the first year of business
Percentage of restaurants that fail within the fifth year of business
Financial reasons why restaurants could not remain open
Explanation / Answer
Mostly 60% of restaurants fail with in first year of business and 80% of restaurants fail with in 5 years of business.
Reasons for Closure of Restaurants may be as follows:
Reason 1 : Financial Issues
Dont have money to employ people to run it even after employing, their funds aren’t good enough to employ an experienced workforce.
Reason 2: Chane in Government Regulations
For Example imposition of higher rates and taxes on services provided by restaurants in future and new regulations such as health care laws require employers with more than 50 full-time workers, including restaurants, to offer health benefits to full-time employees or face penalties of up to $2,000
Reason 3: Effect on Environment
Mostly 30-40% of our food supply in the United States is wasted which leads to filling up of land with Food wastage has negative impact on environment
Reason 4:
Most of People in US are Health Concious and maintain Healthy Diet If restaurants provides cheap quality of food or if customer not satisfied with food.
There are also cases Restaurants shut down on account of Natural Calamities.
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