Capping the Industry

(12 /07 /2015)

After many years in the industry and wondering how a city the size of Brisbane can sustain so many cafes, restaurants and in fact new property developments, the debate on capping the industry has reared again.

With the ever climbing cost of living and the gradual increase of lost jobs and slow employment growth, the entertainment dollar is heading south and more and more current diners are either lowering their spends at restaurants or scrapping the idea all together. So with so many places to choose from you can only imagine the high level of competition for that entertainment dollar.

I was recently reading an article that called for a cap on areas such as Sunnybank where there are restaurants side by side. My initial response would be that each restaurant offers totally different eating experiences as you can sample foods from all parts of Asia. However it depends on the side of the street you are on and the type of establishment you are opening.  With so many restaurants on one side of the road, all appearing to struggle to get patrons, why would you decide to open up there in the first place?

I know that everyone has a right to start any business they want but what I cannot understand is why business hopefuls insist in opening one just up the road from others doing the same thing in an industry that has a high failure rate. With the cafe scene already saturated, how many ways can you do coffee and cake as an example. Before opening your establishment, do you homework, visit the area you are keen to open up in, how many competitors are there  and what is your USP – your UNIQUE sales position – what are you offering that the café next door isn’t?

Without sounding negative, do your homework, write your business plan, talk to industry experts and get business advice from people who have been there and done that.

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