WHY RESTAURANT FAILS?

Why restaurant fails?

Abstract

The paper focuses on the reasons for the failure of family-owned restaurant business. The major reasons for failure discussed in this paper such as classical way for succession, successful transition, lack of proper leadership, resistance to change, role of family, attitude of the family, the false security, corporate governance. The other issues and a major reason discussed comprise of xenophobia, yardstick of performance, aim of the family, ethical issues, hiring of low-skilled professionals, verbal communication, and alignment of goals, branding and transgenerational. The paper ends with the suggestion to the management that the action plan should be developed. Ti should be implemented along with the programming of the activities. The final results should be monitored.

Why restaurant businesses fail?

Thesis statement

The aim of this paper is to discuss the reason for the failure of family-owned restaurants. The paper discusses business run by a family and why it tends to fail at times, especially in case of restaurants.

Introduction

A strategic plan is a crucial element of any business. It contains all the description as to how should we achieve the vision of the business. Planning plays an important role in business plans as approximately 80% of new businesses fail are mostly due to a lack of planning and the process planning, which is very necessary for the smooth flow of business. It is important for the plan that it should include all the skills to examine and clearly understand the issues. For any organization strategies and objectives play an important role in accessing the organization. Here, the strategy is concerned so we analyze it according to the strategies and objectives which are to be achieved. Family businesses are not run like any other businesses (Parsa, 2005). They have something extra to worry about besides profits when dealing with succession within the business. It is the emotions of the family. This aspect is what makes family business succession so difficult. A list of the ten leading causes of problems for the family business could be

Family matters such as divorce, financial crises and health problems

The absence of clear policies, procedures and business rules.

The lack of documented a business strategies for the operation, growth and succession

Problems of compensation (wages, benefits, etc.)

Role confusion, poor control of operations, and the lack of a structure for reporting

Missing an incorrect application on of talent, skills and capacity of family members

Problems with non-family employees for fear of nepotism or favoritism

Communication problems unresolved family situations

The lack of a unified view of business

The absence of values, ethics and philosophy of the company's own documents (Gu, 2000).

Objectives

Objectives of continuing this family business are to increase profits and to keep the decision-making in the family. Succession in the family business is not like any other succession plan for businesses. Some owners have plans. Some have plans that will definitely make someone somewhere within the family unhappy. Forty percent of owners do not have a succession plan because it is too early in the businesses development to have ...