Success Rate Of New Restaurants Essay

1420 Words Oct 3rd, 2016 6 Pages
Starting any new business or product can be risky. Given the statistics for the success rate of new restaurants, Darden’s new concept will have its challenges. Restaurants are one of the few businesses in the world where an entire sensory experience is created for the customer. Often the failure is due to circumstances outside of the restaurants control. Given the amount of startup capital required to open a new restaurant, the margin of error is slim and Darden needs to make great efforts to ensure all controllable risks are properly managed. This can be done through several risk mitigation and management strategies. There are four major risk categories a restaurant faces; sanitation/cleanliness, training/compliance, employee theft, and online reviews/conversations (Dunn, 2014). Each of these categories can be address through several strategies. First and foremost, employees need to be thoroughly trained. This means they need to have extensive and continuous training on equipment handling, safety procedures, customer service, and alcohol service (Dunn, 2014). When new equipment is installed, any employee that will be operating it should be given significant training to prevent either injury to the employees or damage to the equipment itself. Safety procedures need to be clearly stated and compliance enforced. Having employees sign paperwork stating they understand can help managers keep track of who has been trained in the current safety procedures (Dunn, 2014).

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