Reasons Restaurants Close: Understanding Why Businesses Go Under

Restaurants open and restaurants close – it’s a given in the hospitality industry. Sometimes, we rack our brains trying to figure out why a sh*tty storefront stays open for decades, while other times, incredible cafés with delicious food and impeccable atmosphere can’t get their concept to stick. So, what are the main reasons that eateries go out of business? Peter, Liz, and Guest Host Bobby Baklava are answering questions, including:

• Do owners understand their overhead?
• What does it mean to say, ‘sales make everything go away?’
• How common is it for entrepreneurs to enter the restaurant industry ill-prepared?
• Can you be successful in hospitality without any working experience?
• What drives success/failure in the restaurant industry?