Question

You have decided to open up an animal-themed bar/restaurant in the Campus area Assuine you are risK-averse

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RISK MANAGEMENT PROBLEMS

Please answer in detail to get upvote!

Thanks!!!

Answer 1

Other risks involved in the Animal-themed restaurants other than fire, flood and vendalism are inadequate capital, cleanliness, inexperienced staff, location etc.

Inadequate Capital:-

Capital for a business is a very important factor other than any factor. Capital is needed for a business to start, operate and continue the business for the long term . Many restaurants struggle to find source of finance for their business due to higher business failure rate. Still banks and financial institutions are not willing to give loan for restaurant business. So the owners struggle a lot for finance. Many restaurants struggle to find their ground in the first year due to shortage of capital and increased expenditure in staffing, promotion of business, necessary tweaks in the menu etc. To decrease your risk, plan to have several months of funding to cover the costs of salaries, food and bills.

Cleanliness:-

The cleanliness of restaurant is vital for a number of reasons. By having a clean restaurant, it can avoid a number of types of accidents, including employees or customers falling on spills or getting injured from misplaced items throughout your business premises. Housekeeping and cleaning your restaurant is something not to take for granted and should involve the know-how and commitment of all employees. Restaurant will also receive health inspections, so it’s critical that restaurant is clean both in the kitchen and where the patrons dine. As well as restaurants should keep their restrooms clean.

Inexperienced Employees:-

The staffs of the restaurants must be adequately experienced to handle the business. Inexperienced staffs can bring bad reputation to the business, more wastage of food, unsatisfied customers, improper food storage, improperly mixed chemicals etc. So it can turn into a major factor for failure of the business. The cook, waiter, clean staff all should be properly trained and focused for the profit, good reputation, cleanliness, quality of food. Staffs should be motivated so they will not share the business secrets to other competitors. To decrease the employee turnover ratio owner should provide good facilities to them.

Location:-

Location plays a important role in restaurant business. Location might appear to be one of the most important ingredients to success. You should select your location based upon the type of restaurant you wish to run and price the menu accordingly. For the selection of location have to do some market research about the geographic location, transportation facility, social life of the residents etc. But the selection of wrong location can cost very heavily to the owner. So select the location carefully.