The Difficulties of Starting a Restaurant in NYC
If you asked a dozen people on the street about their secret dreams, you might hear at least one person admit that the dream involves opening a restaurant. Those who have the guts and drive required to run a restaurant sometimes set their sights on New York City. With the number of people and cultures that thrive in the city, these chefs and investors think that it’s the perfect spot for a restaurant. Unfortunately, many new restaurants fail within the first 12 months. Those that fail in NYC do so for a few common reasons.
Finding Funding for Your Restaurant
One of the more common reasons why restaurants fail in the city is because the restaurant owners cannot get funding. When you open a restaurant in a smaller town, you might find that banks will loan you money because it knows the risk of running a restaurant is smaller than it would be in a larger city. When you apply for business grants or business loans in NYC, you face competition from other restaurants that need money too.
New restaurants in NYC also face problems when it comes to reaching customers. Walk down the street of any neighborhood in the city. You will see dozens of restaurants, including upscale four star restaurants and smaller neighborhood taverns. Customers typically follow name recognition, and customers continue going to the restaurants that they know. Some customers will follow reviews they read online or in the newspaper, but you might have a problem getting customers that write those reviews.
Choosing the best NYC Location for Your Restaurant
Another problem facing new restaurants in NYC relates to choosing a neighborhood. This is particularly a bad issue if you move to NYC and have no knowledge of the area. Despite the city’s best efforts, parts of NYC are still particularly dangerous. If you choose the wrong neighborhood, you might face neighborhood vandalism, break ins and thefts or other issues that compromise the integrity of your customers. Some customers might even avoid your restaurant because of the area.
Picking the Right Menu to Appeal to New York City Foodies
The other reason why so many restaurants in NYC fail is because the chef picks the wrong type of food. You might pick foods that you like without doing any research. When you open, you discover that your recipes are not interesting enough to get customers through the door. You might even open a restaurant that serves food similar to one right down the street. Those potential customers would rather go with the familiar favorite than your new restaurant.