Why Do Restaurant Business Fail and the Guidelines Necessary to Develop Excellence

Abstract

            Nowadays, restaurant businesses throughout Thailand and the world are growing with diversification. The expansion of tourism is a main supporting factor. However, many entrepreneurs who open restaurant businesses do not succeed due to a lack of understanding in terms of marketing, management, and daily operations since they may not have compiled an efficient system and process concerning the aforementioned. The resulting lead to approximately 60 percent of Thai restaurant businesses closing within the first year followed by approximately 80 percent with an ability to continue in the marketplace but closed within 3-5 years. This academic article's purpose is to examine why restaurant businesses fails and suggest models develop restaurant businesses toward excellence in the future.

            The synthesized results show that restaurant entrepreneurs whose aims are to succeed should consider applying a restaurant development acronym that focuses on “RESTAURANT” which consists of research, engagement, service design, technology, administration, unique product, renovation, action plan, networking, and teamwork. In addition, to maintain the already established standard in the restaurant business with “5G” - Good Food, Good Service, Good Atmosphere, Good Value for Money and Good to Share.