Restaurant Owners: Have You Considered Your Exit Strategy?

As a restaurant owner, it's crucial to have a well-thought-out exit strategy. Separating the restaurant from the owner can bring substantial financial and personal benefits. If your business would collapse without your constant involvement, then it may not be a true business - it's more like a job.

There are two main types of restaurants:

1. The Owner-Dependent Restaurant: This is the reality for approximately 90% of independent restaurants. They start strong but often fail to evolve beyond the start-up phase. The owner is the problem solver, the networker, and the decision-maker. This hands-on approach leaves little time for growth, learning, or strategic networking. It's an exhausting and risky approach, as the business is essentially a Jenga tower held up by a single person.

2. The Bona Fide Business: These restaurants are rare but powerful. They recognize that true success comes after the initial opening. To transform into a sustainable business, they implement robust systems, processes, and training. Every part of the operation works in synergy, and the owner is not the linchpin of daily problem-solving. Job responsibilities, authority, and training are clearly defined, creating a business that can run and thrive without the owner.

So, why do so many restaurants remain stuck in the first category? Because scaling up and turning a vision into a genuine business requires systematic design. Most restaurateurs are inherently creative, but few have the technical skills to turn that creativity into a business that can be exited for significant financial gains.