Restaurant Profitability and Failure Rates: What You Need to Know

Success in the restaurant industry isn’t easy.The statistics aren’t pretty. Sixty percent of restaurants don’t make it past their first year and 80 percent go out of business within five years. Despite the hurdles, many restaurant owners and operators believe that as long as they’re making money, they’re doing “good enough.” The failure in this approach is that it doesn’t account for a universal truth—costs increase.