August 29, 2025

10 Common Mistakes in Starting a Food Business and How to Avoid Them

Introduction Launching a restaurant or café is a mix of art, operations, and finance. These are the 10 most common mistakes that cause the most damage—with […]

Introduction

Launching a restaurant or café is a mix of art, operations, and finance. These are the 10 most common mistakes that cause the most damage—with Dego’s practical solutions alongside each.

 

1) Insufficient Market Research & Wrong Location

Mistake: Emotional decision-making based on “liking the space.”

Solution: Study foot traffic, neighborhood income, competitors, local food basket, parking/pedestrian access. Test MVP sales near the target location before leasing.

 

2) Overcrowded & Unengineered Menu

Mistake: Selling everything, long prep times, ingredient waste.

Solution: Menu Engineering (Stars/Dogs/Puzzles/Workhorses), ingredient crossover, standardized cooking/portion sizes, blind taste testing.

 

3) Unrealistic Financial Model & Ignoring Hidden Costs

Mistake: Overlooking depreciation, waste, excess staff, taxes, and platform commissions.

Solution: Monthly P&L, optimistic/neutral/pessimistic scenarios, break-even analysis, 6-month cash flow budget.

 

4) Wrong Equipment Purchases

Mistake: Buying machines misaligned with the menu.

Solution: Equipment list based on recipes, peak-time capacity, repairability/spare parts, power/gas/exhaust compatibility.

 

5) Lack of Standardized Recipes & Processes

Mistake: Dependence on a “good chef,” inconsistent quality.

Solution: Weighted recipe cards, internal training videos, station timers, shift-based quality control.

 

6) Hiring Without Training & SOPs

Mistake: Rushed recruitment without service culture or standards.

Solution: Shift SOPs, guest conversation scripts, opening/closing checklists, error reporting system.

 

7) Pricing Without Costing

Mistake: “Market-based” or competitor-only pricing.

Solution: Recipe costing, dynamic pricing multipliers, monitoring food cost %, profitable bundles.

 

8) Neglecting Branding & Identity

Mistake: Starting with a logo and stopping there; no integrated experience.

Solution: Brand strategy, visual/verbal identity, brand-driven menu, packaging, and aligned ambiance.

 

9) Launch Without a Marketing Plan

Mistake: A “silent” opening.

Solution: Launch Playbook: teaser campaigns, invite-only pre-launch, influencer collaborations, opening-day offers, local PR coverage.

 

10) Ignoring Feedback & Data

Mistake: Emotional decisions, ignoring reviews and KPIs.

Solution: Weekly dashboard tracking SoS, Google/social ratings, wait times, AOV, RPR, menu heatmaps.

 

Quick Startup Checklist (Printable)
  • Business plan & 3-scenario P&L
  • Data-driven location selection
  • Menu engineering & recipe costing
  • Equipment list based on recipes
  • Operational SOPs & team training
  • Brand strategy & launch kit
  • 90-day marketing calendar + pixels
  • Weekly KPI dashboard

 

How Dego Helps?

From market research to brand identity, from recipe costing to launch playbook, and from content calendar to KPI dashboard—Dego provides a unified team for the full journey of setting up and growing your food business.