Why are restaurants so hard to become profitable?

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I’m always hearing about restaurants losing so much money in the first few years. Why?

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6 Answers

Anonymous 0 Comments

Fundamentally you are competing against people buying groceries and cooking at home.

So you have :
Labor cost
Capital costs ( kitchens are included with residences, restaurants have to build/buy facilities)
Regulations
Etc…

Oh… and at the end of the day you have to deal with the public.

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