Buy custom What Are Five Factors Which Contribute To The Failure Of New Restauran
Essay's paper info
| Topic: |
Business
|
| Number of pages / Number of words: |
6 / 1634 |
Essay's paper body
Many times restaurateurs fail to accommodate the business with
enough cash flow to support the projected three year start period. Some
expenses cannot be avoided nor controlled like raw materials which are essential
regardless if business booms or busts in the early period. Operators must
realize that if business is low, so too should their overhead costs...
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Operators must
realize that if business is low, so too should their overhead costs. If there
is no income, there is no money to pay expenses, thus the restaurant goes under.
Some external factors may effect restaurant expenses which owners have
little control over. Government legislation could cause higher taxes and
operation fees which could force some franchise owners, even in large chains, to
sell rather than sign new agreements...
Essay fragment
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