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Calculating Restaurant Failure Rates Using Longitudinal Census Data, J. J. Healy, Máirtín Mac Con Iomaire

Articles

Failure rates in the restaurant industry are popularly perceived to be far higher than they actually are. This paper calculates failure rates in the Irish Food and Drinks Sector (IFDS), for the first time, using longitudinal census data from the Central Statistics Office (CSO) in Ireland, which follows the European statistical classification of economic activity (NACE). The results are compared with previously published literature on restaurant failure rates in the United States of America. This study also compares IFDS failure rates with other industry sectors in Ireland (construction, manufacturing). Drawing on Stinchcombe’s ’liability of newness’ theory, the informal fallacies theory …