Question

Scarlett is graduating from culinary school soon and she often imagines opening her own comfort food restaurant. Her other passion is skiing in Colorado, where she travels to four or five times every year. As her small business advisor, you believe it necessary to provide her with information that will help her make good business decisions. Which of the following would be helpful for Scarlett to know?a. Restaurants are relatively easy businesses to start, but are labor intensive and also have the greatest failure rate.b. Restaurants are not the easiest type of business to start, but once you get it going, you will have plenty of time for skiing.c. Most restaurant owners get rich if they open their own, independent restaurant as opposed to starting a franchised operation.d. Franchised operations will take less time on the part of the owner than a regular independently owned operation. If she opens a franchise, she will have more time for creativity in the business, and more time for skiing too.

Answer 1

Restaurants are relatively easy businesses to start, but are labor intensive and also have the greatest failure rate.

When it comes to start-ups, restaurants could be relatively easier business to start however, there could be various limitations as far as the funding part is concerned owing to it being Scarlett’s start-up. Moreover, a substantial amount of fund also needs to be dedicated to the labor staff as it is a highly labor-intensive field. If the products and offerings are a hit in the market or if the customers appreciate such services and offerings, then it shall trigger the success however, in general, the failure rate is higher in this business. But it Scarlett takes out time to shape this business well and make it a success, then she could possibly hire responsible staff and team to run the restaurant and continue maintaining the standards of their services even in her absence.