It’s hard not to wonder how many would-be chefs Rocco DiSpirito deterred from entering the restaurant business by famously declaring that nine out of 10 new eateries go out of business within 12 months of opening.
The celebrity chef’s claim was overblown, but the real numbers don’t inspire much more confidence. Researchers at Ohio State University estimate that about 60 percent of restaurants undergo an ownership transition in their first year; 80 percent shut down within five years.
Fortunately, failure is not a foregone conclusion. Chef and TV personality Robert Irvine told Business Insider that financial competency is one of the top factors separating success from failure in the restaurant world. Fiscal prudence and a bit of foresight can help restaurateurs get their finances in order and avoid the grim fate of going out of business. Read the full article on Modern Restaurant Association here.