What are the common business risks in the catering industry?

In the process of winning certain business opportunities and achieving project management objectives, the catering industry will suffer losses if it cannot foresee and deal with the following risks. Generally speaking, we divide these business risks into four categories.

1. Physical risk

Tangible risk refers to the risk that operators can evaluate and judge the degree of loss according to their own intuitive feelings and experiences. Physical risks are also called "hard risks", such as insufficient funds or congestion, rising raw material prices, food price reduction losses, unpopular dishes, outdated equipment and so on. This risk is obvious, and the resulting loss value can be calculated.

If catering enterprises strengthen market research and operational risk management, take corresponding measures or cooperate with professional catering institutions, they can prevent or reduce the loss of such tangible risks.

2. Intangible risks

Intangible risk refers to the risk that it is difficult for operators to judge by intuition and experience, and it is also difficult to evaluate the degree of loss according to the present value. Intangible risks are also called "soft risks", such as poor service quality of catering enterprises, low quality of operating dishes, consumer trust crisis, false or boring propaganda, customer disgust and rebellious psychology, lax internal management of catering enterprises, distraction, low labor efficiency, and losses caused by catering enterprises turning a blind eye to risks.

Operators of catering enterprises must attach great importance to intangible risks, be prepared for danger in times of peace, and keep a clear head. Especially in the case of smooth operation of enterprises, we should also see the threat of potential intangible risks to business activities.

3. Time risk

Time risk refers to the risk brought by time difference to the operation of catering enterprises. There are many reasons for time risk, such as the influence of seasonal changes on catering consumption, the market life cycle of products, the change of consumer spending time, the time difference of competition in commercial activities and so on.

In order to prevent the time risk of catering industry, we must establish the concept of time, constantly observe and analyze the influence of the development and change of things in time movement on the operation of catering enterprises, eliminate the interference and destruction of time risk on the realization of catering enterprises' business objectives as much as possible, accurately grasp the opportunity and ensure the normal operation of catering enterprises.

4. Space risk

Spatial risk refers to the risk caused by spatial factors in the process of realizing the business objectives of catering enterprises. There are many reasons for spatial risks, such as the location and surrounding environment of catering enterprises, changes in the supply and demand relationship in local markets, regional historical or traditional or customs or cultural differences, population distribution and resource conditions in various places.

In order to prevent space risks, catering enterprises should be very careful to determine the appropriate business location according to various comprehensive factors and actual market research when opening stores.

After opening a store at the selected address, the space risk still exists. Investors should always pay attention to the changes in urban planning, the rise and fall of surrounding consumer markets, and the changes in the quantity and quality of regional population, and prepare for space risks in advance.