One of the biggest mistakes—and lessons learned early in my business journey—was due to underfunding.
It happened way back when I opened my second venue, a fine dining restaurant that proudly held 3 AA Rosettes and received numerous accolades. If you read the reviews, it was a highly successful venture.
But the full picture, was a different story.
The restaurant, like a lot of hospitality businesses, cost a fortune to set up. We transformed an old warehouse into a beautiful fine dining venue, complete with a bespoke kitchen fitted with all the modern conveniences. We had budgeted carefully, creating an incredible experience for our customers, right down to the unique fish tank in the reception that offered a view through to the kitchen where chefs worked their magic.
But there was something I didn’t know…
It wasn’t the cost of the renovation or the equipment that broke us; it was understanding the complexity of getting any hospitality business to actually fly. It's far more than just creating something well. People are creatures of habit; it takes time to influence and change behavior, to build that loyal tribe of customers.
Despite all our efforts, we closed the restaurant 2 1/2 years after opening. People would say, "What a shame! I heard such great things but never got around to visiting!" As frustrating as that was, it taught me this valuable lesson:
Creating a hospitality venue is more than just designing a beautiful space or crafting a delicious menu.
It involves injecting passion into every detail, staffing it with a talented team, and building a culture that's adored by both the team and customers alike. What I had not fully grasped back then was just how hard it is to get such a business off the ground. Hospitality businesses need time to grow and develop, to prove themselves.
The reality is that even if customers love what you do, building a loyal following is an uphill battle.
People are creatures of habit. Everyone already has a favorite coffee shop, pub, bar, restaurant, or festival they frequent. You could be the best in the business, but changing people’s existing habits takes more than just quality; it takes strategic marketing, PR, culture, and purpose to communicate your message and influence your target audience.
Unfortunately, we simply ran out of money before we could give ours that time.
The lesson I learned is that hospitality projects require deeper funding than you might expect.
And in an industry where securing funding can be particularly tricky (the computer often says "NO"), it's crucial to have people who truly understand the business to advise you on your options. Without deep enough pockets, you risk running out of time and money before you can make the impact you need.
This shouldn’t put you off though, hospitality is well worth it and fortunately, in my 30-year hospitality journey, I've picked up a number of great friends in the industry who are brilliant at making things happen including experts in financing your business. They can make it happen and importantly they can make it cheaper!
That is what Kith & Kin Hospitality is all about—sharing experiences and contacts.
My purpose is to help you avoid the pitfalls I stumbled upon.
If this resonates with you, get in touch, and let me share my contacts to make things easier.
