Success and Failure in Northern California

Abstract

This study examines the success factors for independent restaurant operators in the San Francisco Bay Area. Through interviews and questionnaires, the cases of nine successful restaurants and nine failed restaurants were studied from 2003 to 2007. The findings reinforce past studies by emphasizing the internal factors, such as overconfidence and emotional unfitness, that led to failure. Augmenting an earlier model, this study seeks to help future entrepreneurs and those who invest in restaurants.

Restaurant practices – time, planning, knowledge and dreams

“…This study presents the content and relationship between activity and creation of meaning in the routines in small restaurants. Regarding experience, knowledge and skills, the paper confirms the findings of Fine (1996), Skalpe (2003, Getz and Peterson (2005), Camillo et al (2008), Markowska et al (2011), Brouder andEriksson (2013), Jönsson (2012). However, the detection of the creation of meaning in the daily activities in small restaurants, through the use of practice theory as in this paper, has not been done previously.…”

Success Factors in Independent Ethnic Restaurants

“…Many ethnic restaurants are independently owned and may have limited resources. In a later study of restaurant success/failure factors, Camillo, Connolly, and Kim (2008) concurred with Parsa et al (2005) and excluded franchise restaurants, stating that franchisees tend to have greater financial resources, a more structured organization, more established brands, better training programs, and a more planned approach to selecting new restaurant locations.…”

“…This, along with many restaurateurs' prior experience in the industry, may account for the fact that the importance of hospitality or culinary education was ranked lowest. In the survey conducted by Camillo et al (2008) five out of nine successful restaurateurs had a hospitality administration education background and two had prior industry experience. Results of this study would conflict with Camillo and colleagues' findings and suggest that for independent ethnic restaurateurs, formal hospitality education may not be as important as the combination of prior experience and post-secondary education.…”

“…For example, questions determined if a feasibility study had been conducted, if a business plan had been developed, the involvement of family members, and investment financing. Part three of the instrument listed the 19 SFs identified by Camillo et al (2008) plus 1 additional factor specific to ethnic restaurants: "Customer familiarity with ethnic food served." Restaurateurs were also asked to identify any other important factors not included in the provided list.…”

“…In their study, Camillo et al (2008) did not rank success factors (SFs) identified by restaurateurs, suggesting that both behavioral factors and technical or management skills were important. Restaurateurs' personal behavioral factors, such as humbleness and respect, were cited as crucial to a restaurant's success, while such factors as stress often lead to emotional decision making versus objective decision making.…”