Even Running a Restaurant Business Is Not Without Risks and Here Are Just 7 Examples

Being aware of possible risks before you get into something is always good.

Starting a restaurant business has a plethora of risks, and it is very beneficial to be aware of them before starting. Considering and planning will help limit the chance of downfall from risks in the restaurant industry. Here are seven risks you should know about before opening a restaurant.

Restaurant Failure

Whenever starting something new, there is always the risk that it will fail. This is especially true in the restaurant industry, as new trends and diets are always changing. There are a lot of things that can cause a restaurant to fail. A bad location, bad food, bad prices, and bad luck are all things that can negatively affect your restaurant. Haberman Insurance Group provides business insurance should anything bad happen to your restaurant.

Timing is crucial. Opening a restaurant at a bad time could result in a very low number of customers. Maybe you are opening a steakhouse at the time a new vegan diet is sweeping the town. Evaluate your situation and be sure to open a new restaurant at a good time.


Good marketing results in good revenue. Restaurants that tend to demonstrate poor marketing often have fewer customers. When marketing, make sure you are appealing to your target audience. Making advertisements a top priority will get more people aware of your business. The risk of marketing is marketing in the wrong way. You need to be sure you market your establishment in the best light possible and do not overpay for marketing.

Overpaying for advertisements can put you in debt you may not be able to get out of. Finding the best deal for advertisements is very important. If you spend too much you could waste needed money, but if you do not spend enough, you may not get enough news of your restaurant into the world.

Illegal Activity

Every single establishment is at risk for illegal activity. Crimes such as break-ins and vandalism are of the more common crimes committed in restaurants. If your restaurant is successful and bringing in a lot of money, you are even more prone to a break-in. People will break in with weapons demanding money from your cash register.

People will also break in when nobody’s around and attempt to steal cash and items that could resell for a decent value. They may target TVs or computers located in the establishment. Smart restaurant owners will have separate locations to store money and install security cameras to film burglars should anything happen. Security cameras also lower the risk of break-ins and vandalism as they scare criminals away.


If someone gets hurt in your restaurant, they may hold the restaurant liable. People may get hurt by slipping and falling, choking, or getting injured in some other way. Although it may not be the restaurant’s fault, customers will still try to blame it on the restaurant. This is where having security cameras also helps. Be sure to place wet floor signs in areas where slips could occur. Also, make sure security cameras have a view of where people may fall or pretend to fall.

Customers may also try to hold a restaurant liable if they experience sickness after eating food from the restaurant. Make sure you keep the cooking environment clean and use ingredients that will not cause food poisoning in customers. Proper storage of food is crucial to avoid causing food-based illnesses in customers.  Also, make sure all the employees have proper food handler permits.


The cleanliness of your restaurant is crucial to success not just the cleanliness of the dining area, but the kitchen and bathrooms as well. A clean restaurant helps eliminate risks such as an infestation and food poisoning. Keeping the kitchen area clean is key to cooking safe meals. Keeping the dining area clean is to ensure customers enjoy their time in the restaurant.
No matter how good the food is, a dirty dining area will turn off customers.

People will see how the dining area looks and automatically think that the kitchen looks the same way, and nobody wants to eat food coming from a dirty kitchen. Keeping the bathrooms clean is not as important as keeping the kitchen and dining room clean, but it still has importance. A clean bathroom will only make your restaurant seem better.

Fire Safety

Aside from buildings built with non-flammable material, every building is at risk to burn down. Restaurants are at an increased risk because they store lots of flammable materials. Restaurants also use fire and heat to cook food. Restaurants are most prone to grease fires because of their heavy grease usage.

The risk of a fire is one of the best things to be prepared for. If you do not want to spend the extra money on non-flammable material, make sure that you have items ready that can defend fires. A hose and fire extinguishers placed around the premises are great to combat fires should one ever happen. Also, have a fire alarm that is programmed to contact local fire departments automatically.

Being prepared for fires is one of the best things to do as a restaurant owner.

Bad Reputation

Just like anything in life, there is the risk of gaining a bad reputation. All it takes is one person to have an unpleasant experience at your restaurant and the whole thing can go downhill. In this modern era, it is very easy to write a bad review online minutes after your experience. Things to do to avoid this include treating every customer with respect. There’s a reason the saying “the customer is always right” exists. Make sure to try to give everybody the best experience possible to avoid bad reviews.

Risks are a part of every business journey. For those opening up a new restaurant, there are lots of precautions to take to avoid failure. Taking these steps does not guarantee success, but it does lower your chance of failure.