From owners of fast food, fast casual to expensive exclusive restaurants they have some very common pitfalls and mistakes in the hospitality industry. Here is a perspective from one restaurant executive sharing his thoughts and advice.
Here is one of the top reasons why Restaurants suffer and some points how to avoid them.
Low start-up capital
When to enter the market is critical and all your homework should be completed before entertaining the idea of owning your own restaurant.
Have a feasibility study completed by an industry consultant.

Capital needed to fund the project for start-up and for the first three to six months afterwards is well worth the advice of qualified entrepreneur in the business or consultant with the background for start-ups.

The initial fees for permitting, architectural plans, health department fees could cost in excess of $25,000 even for a small operation.

Funding for the FFE, training, inventory and marketing costs.

Raising the capital or acquiring a partner is one option and finding funding resources that are available for restaurant owners. You may or should reserve some of your capital for other expenses when you open because the labor it high during that period and team member training that increases costs. Taking an equipment loan and possibly working capital could get you through the start up phases and honeymoon period.