Business Commons^™

The Left Bank Brasseries: The Evolution Of A French-Inspired Restaurant, John A. Sansone

Student Research Posters

Due to the high failure rates of restaurants in the United States, many studies have come up with various reasons to explain the underlying causes of such a phenomenon. One key study by Parsa (2005) suggests, “Restaurant failures have been attributed to economic and social factors […]” and “Restaurant failures can be studied from economic, marketing, and managerial perspectives.” In particular, lack of capital is a major contributing factor for restaurants failure and researchers agree that a restaurant without a sufficient amount of capital will not survive because of three major expenses: overhead, labor, and food cost. Today’s service industry …