Document Title: Challenges of starting a food business, and solutions

Paper code: 13046

Challenges of starting a food business, and solutions  

STARTUP RISKS AND CHALLENGES

Starting a new food business comes with difficulties and risks which if unattended to cause the business to run not for very long. Daph foods Ltd faces a number of challenges and risks on startup and these include but are not limited to the following;

Inadequate Capital

At the start of the business Daph foods Ltd was challenged by a solid business plan but lacked adequate funding. Daph foods owner greatly underestimated how much it cost to not just open a restaurant but to keep it running during the first few crucial months and years.  Daph foods Ltd struggled to find their ground in the first year while the owner made necessary tweaks in the menu or staffing and customers finding out about the place.

Demanding Workload

At the beginning, from the business planning stage to opening and running the Daph foods ltd, the owners worked overtime hours. One restaurant owner and his partners spent well over 100 hours a week working during the time surrounding the opening. This sort of workload was exhausting. Some of the 60 percent failure rate can be attributed to not being able to keep up with the demands of the industry.

Location

Location appeared to be one of the most important ingredients to success. Choosing a location that was very popular restaurants meant the rent got higher and the competition became stiffer.