What are the factors leading to the failure of fast food business

now, the rapid growth of the fast food market, many investors began to enter this market, I do not know blind investment, investment will face failure. What are the factors leading to the failure of fast food business? Fast food business must be done in advance planning, market research, feasibility analysis of the business report.

Lack of prior planning for

1. Choose to do fast food, is that the threshold of the industry is low, the risk of pressure is small, fast cash withdrawal. Because of this illusion, when we take lightly, the lack of planning for the operation, so that the consumer population, the cash cycle cycle, the estimated turnover of inadequate assessment, when the risk comes, unprepared.

Lack of understanding of

2. industry. Due to the catering industry research is not systematic, resulting in confusion in the way of business. Our consumer groups, migrant workers are, they have three needs: the restaurant business area of 90 square meters (to be spacious, we only have 40 square meters), fast food varieties of at least 20 (us less than 18); Steamed Rice to eat. These basic demands are ignored by us.

3. positioning is not clear. We first do is fast and the effect is not obvious after the Guilin Rice noodles, fast food and economic delicacies, and later launched the stone fish and fast food. Positioning is not clear, to consumers a great illusion. Diversification has also caused the power to disperse, the quality of dishes can not be effectively improved.

4. location problem. Do catering, site selection is critical, the location of the reference indicators: the existing consumer groups, potential consumer groups, contract period. We consider the location, long enough, then the factory relocation, causing passenger dropped, this is the biggest mishap.

5. property management is not in place. In the food and beverage industry, the chef is the most important type of work. At first we hired an experienced chef, and a certain percentage of the bonus as an additional reward to stimulate their initiative. However, due to procurement and other aspects of our control, the chef gradually slack. But after he left his own business very hard, in the cost and control of cooking. Because property management is not in place, dampened the enthusiasm of the chef and the impact of benefits.

6. partner problem. The three partners are very diligent and hard-working, but no one is fully competent in planning, management and marketing. In addition to these guys to slow the character, I as a leader, not fully arouse their enthusiasm in the process, when the business problems failed to improve. Venture partner is very important, not to have the idea to start a business together.


Leave a Reply

Your email address will not be published. Required fields are marked *