Hospitality Insight

Opening a new restaurant is a big gamble, even in good economic times, with three out of four places closing within the first three years. But according to the latest edition of Entrepreneur magazine, now is a great time to open a restaurant.

The upsides to a down economy make it a risk worth considering. Among the reasons: rents have dropped by as much as 66 percent in prime locations, and landlords are actually offering abatements. There’s a huge pool of talented chefs and workers desperate for jobs and willing to work for much less.

For more information, read the full article from Entrepreneur. Copies of the magazine are also available on the Current Periodicals shelf in the library.

Even in a healthy climate, opening a new restaurant is a risky proposition, so a new dining venture in today’s economic setting requires an unwavering entrepreneurial spirit. In the April edition, Entrepreneur magazine surveyed a handful of industry experts and food entrepreneurs and compiled the perfect recipe for starting a restaurant or food business in a down economy. 

Starting a restaurant has always required sufficient capital, but that requirement is even more important now. According to Clark Wolf, founder and president of Clark Wolf Co., a food, restaurant and hospitality consulting firm: “Historically, people have heard that undercapitalization is the No. 1 cause for failure in business,” Wolf says. “It has never been truer. You really need to know not just how much money you need to open the restaurant, but also where the rest of it is coming from.”

Read the full article from the Entrepreneur web site. Print copies of Entrepreneur magazine can be found on the periodical shelf in the Nestlé Library.