There’s a lot of good business to invest in but restaurants, bars and bakeries are some businesses that gives investors great opportunity but truly, investments risks are present for every entrepreneurs or investors who don’t do their right research about their desired concepts, markets and demographic trends of the areas where restaurants operates. In fact, a study shows that Americans spend 48% of their food budgets eating in restaurant especially fast-foods type or ordering take-away foods and hospitality businesses include upscale, agile-services and middle-scale establishments. Each effort attracts different kinds of potential customers.

A short talk about Restaurant Investments

No business is a cakewalk, all business will start in a very hard and risky way and obviously this includes restaurant business. Research says that aspiring chefs, bartenders and bakers often concentrate on plying their craft without any business savvy or commitment to costing strategies and marketing. National Restaurant Association and Cornell study said that 60% of restaurants, bars and bakeries fail within a span of three years. In order to successfully built a restaurant, a marketing study is required.

A guideline tip for checking investors

Restaurants and food-and-drink businesses who didn’t met their quota almost never return significant capital that’s why investors shouldn’t risk more money than they can safely lose. A feasibility study is more important than you think. This is will be your fundamental guideline in establishing your business. Your considerations should fall upon the acquired answers of the research. Considerations of investors should include, but not limited by, the following:

  • Business Structure
  • Concept
  • Competitive Environment
  • Neighborhood Demographic Profile
  • Future Developments
  • Population Trends
  • Financial Considerations