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What Are Five Factors Which Contribute To The Failure Of New Restaurants? Beginning of Paper ? Definition of Business Failure: Business that ceased operation following assignment or bankruptcy; ceased operation after foreclosure or attaching; voluntary withdrawal leaving unpaid debts. It is a common assumption in the restaurant industry that restaurants fail at an .... Middle of Paper .... 50 to 80 would fail before their first anniversary. That would leave 30 restaurants open in the year two. Half of these 30 would subsequently fail in their second year, and a final third of those remaining would fail in their third year. As a result, there is about a 90% compound failure rate over the first 3 years of a restaurants lifespan. (Mullen & Woods, 61) You are not alone if you feel intimidated by the numbers. They can be quite blunt and negative which attributes to one simple fact - it takes planning, research and risk to ve .... 1594 words | 6 pages Subscription Length Price Join 30 days membership (recurring) $19.95 90 days membership (recurring) $39.95 180 days membership (non-recurring) $69.95