The video opens with a stark number: 44% of restaurants are either losing money or barely scraping by, up from 12% a few years ago. Here are six reasons restaurants could fail in 2026, and what the smart ones are already doing about each.
Watch on YouTube: Don't do these mistakes if you own a restaurant!!
42% of operators said they weren't profitable in 2025. Food, labour and rent are up, and owners are afraid to raise prices. The fix: visibility. Know where every dollar goes: labour, waste and which menu items actually make money. Survivors measure instead of guessing.
Labour, food, insurance and utilities keep climbing, but raise prices too far and people stop ordering. The fix: control what's in your hands. Cut waste, renegotiate with vendors and tighten inventory.
Turnover is brutal and good staff want flexibility, real leadership and a place that doesn't burn them out. The fix: invest in your people with better schedules, better culture and tools that help them work smarter.
Many restaurants hand over 20 to 30% on every order. If your margin is 5% and the app takes 25%, it doesn't add up, and the customer becomes loyal to the app, not you. The fix: build direct relationships with your own online ordering, loyalty and an email list that's actually yours.
Customers expect online ordering, accurate listings, a smooth mobile experience and now AI-powered discovery. The fix: not every shiny tool, just the right ones: a modern POS, connected systems and simple loyalty.
Customers are pickier, more careful with money and comparing more, and the journey crosses channels: found online, delivery, then an in-person visit. The fix: lead with value, convenience, consistency and loyalty. Getting a customer once is great; getting them back is everything.
The video cites 42% of operators.
Build direct relationships: your own online ordering, loyalty and an email list you own.