It is the dream of every investor to have an excelling business. When one starts a business, the goal is to see it being successful and productive. Well, sometimes things don’t go as expected. Businesses fail no matter how much we try to make them work. Due to the harsh economy right now, businesses are being closed daily.
Kobe Steakhouse has been in existence for more than 35 years ago. They have made so many achievements, and operate branches all over the world. All these branches do offer services to the locals and keep the customers coming. With so many lessons to learn, the owner has been running the eatery through:
- Excellent services.
- Great food.
- Having consistency in what they do.
- Maintain the Japanese heritage.
- Providing an ambiance environment for the customers.
- Building trust in their customers by making them watch as food is being prepared.
It has not been easy, so many things have come up that threaten the industry. Kobe Steakhouse is not left behind. The management has had to take drastic changes to remain operational which sometimes cost them a lot. Some of the factor affecting their existence include;
Cost of production
Things are changing and this comes with new equipment and technology which cost money. Today’s food is made using different methods that require modern machines. This means that the owner must go back to the pocket and provide funding for the new change. Also, there has been an increase in prices of the ingredients.
A while back, they could get ingredients that were locally grown and the cost of buying them was low. With the increase in demand, the need for larger volumes of ingredients has risen which means buying in bulk. Some of the ingredients must be imported and this increases the cost of production significantly. It triggers a major challenge in the management of the steakhouse.
Investing in Japanese food industry has been every Asians dream. It has seen the coming up of eateries in every corner. New restaurants come with new ways of doing things. That leaves older restaurants with no choice than to cope up with the trend. With so many joints coming in, it has made the food offered to become cheap. It reduces the once enjoyed profit margin of the older restaurants.
What was once unique in Kobe steakhouse is being emulated by other coming up restaurants. It makes them try hard to maintain what they believe attracts the customers and that comes with additional cost. Competition has brought along closure of some joints due to poor turn out of people.
customers are looking for more
It is hard to satisfy people. Every day people come up with the new preference for food. It makes people want to experiment with different dishes. That leads to people looking for more. They do this by visiting other joints all in the name of looking for different taste and experience.
With people being liberated, they tend to look for newer, modern and tastier dishes to try. With Kobe steakhouse trying had to maintain its heritage, it becomes hard to keep liberated customers. That has made them make a hard choice of changing the menu to accommodate the preference of customers. it leads to them offering food and drinks that are out of their norm like;
- Fast foods like French fries.
- Alcoholic and non- alcoholic drinks.
Operation labor is hard to find
In the past, restaurants such as Kobe steakhouse was run by the owner and his family. It was done diligently and with a lot of dedication. With the emergence of so many things to do, restaurants are lacking skills and manpower to operate them. To be honest, it takes a lot of time to prepare and cook a Japanese dish and nowadays there is no patient when it comes to the chef and the operators.
With the increasing demand for places to dine, there is no enough chef to do the cooking. That leads to some restaurants having a non-skilled chef who doesn’t follow ways of making delicious meals such as sushi or seafood. With poor food, what do you expect? Lack of originality which leads to people not appreciating work the chef invests in preparing a single meal. Who wants to spend time in a meal that won’t be appreciated? This kills morale in professional people in the industry.
It affects almost every restaurant. Due to the emergence of so many eateries, the government is coming up with tight rules of governing the hotel industry in Japan. What do you expect? Many and tough rules will be put in place to govern. With the rules in place, Kobe Steakhouse and other restaurants will have to comply to be operational.
Complying means the management will implement what the government states. That comes at a cost. Hotels know that they must be in good books with the government for them to operate smoothly. It includes passing of health and other inspections the council conduct regularly.
Small profit margin
The goal of every business is profit. A profitable business makes the running more easier and simple to manage. With the coming up of eating joints in the streets offering the same food has seen Kobe steakhouse operation strain a lot. That is because all the eateries are sharing the same customers hence competition in pricing.
The operation cost of Kobe steakhouse will be high than that of an eatery on the street. This makes the steakhouse strain to operate and leads to closure of some wonderful ones doing well branches.
It is not always a walk in the park. For Kobe steakhouse to be operational, it requires a lot of effort, time, sacrifice and above all resilience. The owners have had to make changes and mistakes to become what they are today. Managers are positive and always say the future is bright. Whatever happens, Kobe Steakhouse is here to stay.