"I wonder if the very high failure rate in the restaurant biz has anything to do with this."
It's a massive reason of failure. Next biggest I would say is the inability to realistically calculate costs over time compared to dynamic income. Eg overspending on staff at bad times, the. I spending when required
Yes I agree, the inexperience with balancing expences and revenue were ultimately what led to the restaurant’s demise. He didnt leave himself enough runway for this project to succeed. $20k for the grease trap installation was a sunk cost that could have otherwise went a long way, better served on other expenses. He fell in love with this particular location and that was it. He went for the home run - a high end restaurant. I feel like he should have started smaller, something less posh, somewhere people could afford to get lunch every day, rather than a place where half the draw is based on ambiance and the ‘dining experience’. This would have allowed him to figure out a lot of important details - how to make $20 chicken for $5, finding good vendors, crafting good tasting food with low cost ingredients, creating dishes and a menu that dont require a team of chefs, building a buzz, managing a stock of perishable products, etc. Master those intangables then step into the big leagues. Basically learn to crawl before you attempt to sprint.
"I wonder if the very high failure rate in the restaurant biz has anything to do with this."
It's a massive reason of failure. Next biggest I would say is the inability to realistically calculate costs over time compared to dynamic income. Eg overspending on staff at bad times, the. I spending when required