By George Taylor
My name is George Taylor, and I am the author of A Pizza My Life. In my book, I began by detailing why our first restaurant ultimately closed. Our pizza shop was open for almost 20 years. While I wouldn’t necessarily call it a failure, in the end, it faced the same fate as many others in the restaurant industry—it closed.
I’d like to share a few lessons we learned during our journey. Some of these we learned the hard way, which ultimately led to our closure. These insights are not meant to discourage you but to help you succeed by avoiding similar mistakes. Over the years, we faced many challenges, but I believe these three key factors are the most important:
1. Financial Mismanagement
If you search online for why restaurants fail, the No. 1 reason is often financial mismanagement. This can show up in several ways. Starting a restaurant without proper funding is one of the biggest risks. If you don’t have the finances to weather the inevitable tough times, especially in the early years, you may struggle to keep the doors open.
It doesn’t matter how great your food is or how skilled your staff might be—if you don’t know how to manage your finances, your business is likely doomed. Over the years, I’ve seen some succeed by sheer luck, but relying on luck is not a sustainable business plan.
In our case, we were fortunate to have parents who provided financial support during tough times. We had to dip into that well more than once. However, not everyone has access to such a safety net, and banks are often hesitant to lend money to restaurant owners. Toward the end of our first restaurant, financial mismanagement played a major role in its demise.
Related: George Taylor explains how ‘unique selling propositions’ can make your pizzeria more profitable.
We purchased a three-story downtown building to house our pizzeria on the first floor. Unfortunately, we didn’t properly invest in maintaining the building. We chose not to become landlords and left the upper two floors empty. As a result, we rarely went upstairs. Even though we installed a new roof when we moved in, it was completely shot after just six years. By the time we realized it was leaking, significant damage had been done, and insurance only covered a fraction of the repairs. We didn’t have the funding to fix it, and that was the final straw that led us to close.
Another common issue is not understanding your costs. Many owners focus on creating great food but fail to price it correctly. If you don’t know your food and labor costs, it’s nearly impossible to make a profit. And without profit, there’s no business. You should understand all of your costs—not just food and labor, but also rent, insurance, utilities and other expenses.
Your menu pricing needs to cover all of these costs while leaving room for profit. If you struggle with understanding the numbers, seek help. Many communities have Small Business administration branches that can connect you with mentors and advisors. There are also consultants in the industry who can help for a fee. It’s worth the investment to get your finances on track.
2. Poor Location
Location is another critical factor. Your restaurant’s success depends on good visibility, adequate parking, and being situated in an area that matches your concept. A poor location—whether it’s hard to find, lacks parking, or doesn’t attract your target audience—can be a death sentence for a restaurant.
Parking can be a bigger issue than some realize. Consider your needs for employee parking, dine-in parking, and take-out. For take-out, ensure there’s enough room for several cars to pull in and out safely at the same time. While a full parking lot might make your restaurant look busy, if customers can’t find a spot or access your location easily, they’ll eventually stop trying.
I once consulted for a couple who took over a pizzeria in what might have been the worst location I’ve ever seen. It was tucked behind a row of apartments with no visibility from the road. The space looked like a residential complex, and there was no reason for anyone to turn in unless they lived there. By the time they contacted me, it was too late. While I helped with menu, pricing, and recipes, the location itself doomed the business. Had they sought advice beforehand, I would have advised them to look for a different opportunity.
3. Lack of Consistency
Customers value consistency—whether it’s in food quality, hours of operation, service, or the menu. If you’re constantly changing your hours, rotating menu items unpredictably, or delivering inconsistent service, customers will lose trust and seek alternatives.
Consistency builds loyalty, and loyal customers are the backbone of a successful restaurant. While it’s natural to tweak your menu occasionally, be sure to keep core items that sell well. Abruptly removing popular items can alienate your customers.
Operating hours should also be consistent. At one point, after years of hard work, we started closing earlier—reducing our hours from 1 a.m. (3 a.m. on weekends) to 10 p.m. every night. We were exhausted and needed a break. However, we eventually realized we were losing sales and returned to our original hours. By then, the late-night crowd had already found other places to eat.
Final Thoughts
These are just a few of the lessons I’ve learned from my own experience and from observing others in the industry. Running a restaurant is incredibly rewarding, but it’s also one of the toughest businesses out there. By addressing these key factors—managing your finances, choosing the right location, and maintaining consistency—you’ll give yourself a better chance at long-term success.
George Taylor is a veteran pizzeria owner/operator and co-owns Taylors’ Pizza House in Endwell, New York, with his wife, Patti. The Taylors founded Taylors’ Pizza House initially as a takeout-only pizzeria in 2017 before moving to a larger space in 2022 and transitioning to a full-service operation. George is a member of the U.S. Pizza Team and author of A Pizza My Life, available here on Amazon.com.
