Common Mistakes New Restaurant Owners Make and How to Avoid Them

When I opened my restaurant, I thought I had everything figured out, good food, cozy vibes, and a unique name. I even had a neon sign. But in the first month, I learned more than any school could teach me. 

Mistakes? Bro, I had a collection.

So today, I’m sharing my most embarrassing and eye-opening mistakes, so you don’t have to go through the same restaurant rollercoaster. 

Are you ready for the ride?

1) Believing Good Food is Enough

I used to think, “If my buffalo wings are the best, the people will come.” And yes, the wings were awesome. But guess what? Nobody knew it existed.

My friends loved it, my family said “This is insanely good!” But customers? Non-existent. That's when it hit me: having good food isn’t the goal, getting people to try it is.

Real Scenario:

One day, I invited a local food blogger (just 6k followers) for a free tasting. He posted a casual story “The Best Buffalo Wings in Town.” Within 24 hours, I had more walk-ins than I’d had all week. People were asking for “the dish from the story.”

The Fix:

• Start posting daily on Instagram (food, kitchen vibes, funny reels).
• Create your Google Business Profile.
• Run a small promo like “Buy 1, Get 1 Free” or “Free drink with a meal”.
• Partner with local food bloggers for shoutouts.
• List your restaurant on Ubereats, Doordash, and more.

2) Not Using a POS System

I thought I was being smart by avoiding the cost of a POS system. I mean, why spend when a notebook and calculator work, right? 

Absolutely Wrong!

Soon I was dealing with:

• Wrong orders
• Lost bills
• Missing payments
• And my staff getting “confused” a lot

Real Scenario:

One Saturday, a group of friends came in, had a big meal, and then… a glitch. The waiter forgot to record their order. They walked out angry, and I had no clue what went wrong. My kitchen and floor team kept pointing fingers. That night, I knew I needed order-tracking superpowers.

The Fix:

I installed Butter POS, and my life changed:

• Orders go straight to the kitchen.
• Bills are auto-generated and can be split easily.
• No more “he said, she said” drama.
• Sales and inventory insights — all in one place.

3) Hiring Friends Instead of Staff

I get it — when you’re starting your restaurant, you want to hire people you trust. But hiring your bestie as your manager? Trust me this will be your biggest mistake.

Friends can be loyal, but that doesn't mean they’re skilled. I ended up with late openings, mood swings, and a manager who spent more time on Tinder than training the team.

Real Scenario:

I once had to step into the kitchen and manage tables at the same time because my “friend” manager decided to leave mid-shift, for a family dinner. I had no backup plan. Worst service night of my life.

The Fix:

• Always interview like it’s a real job (because it is).
• Hire professionals, not just “buddies”.
• Train thoroughly and have written rules.
• Set clear roles and KPIs.

4) Not Setting Clear SOPs

I assumed everyone knew how things should be done. But, soon I realized that assumptions are dangerous.

Some waiters were offering free refills. One gave a customer a full refund because “they didn’t like the color of the sauce.” It was chaos.

Real Scenario:

A guest once asked for “extra spice.” My chef put full ghost pepper on that dish. The customer’s tongue went numb. I got a 1-star review titled: “The Fiery Fried Chicken.”

The Fix:

• Create SOPs (Standard Operating Procedures) for every task.
• From greeting guests to closing the till, write it all down.
• Train your staff regularly using these SOPs.
• Review and revise them monthly.

5) No Daily Expense Tracking

In the first month, I thought we were doing great financially. Sales were happening, people loved the food. But at the end of the month…boom. No profit. In fact, I was at a loss. Where did the money go?

Real Scenario:

I found out that one of my suppliers was overcharging me for basic items. Since I never tracked daily expenses, it went unnoticed for weeks. 

The Fix:

• Use Google Sheets or a free tool like Wave/Zoho to record expenses daily.
• Assign one person for daily cash flow tracking.
• Review weekly with your manager/accountant.
• Compare purchases vs actual usage.

6) Not Understanding Your Customers

I thought I knew what people wanted. So I made the menu I liked, heavy, rich food with zero healthy options. What I didn’t realize? 40% of my audience were gym-goers or calorie-conscious office workers.

Real Scenario:

A group of 6 came in, looked at the menu, and said, “Is there anything that’s not fried or butter-loaded?” I awkwardly said, “Uhh… water?” 😅

They left.

The Fix:

• Observe your regulars. What are they asking for?
• Run polls on Instagram stories like “Should we add vegan options?”
• Create a feedback form with a QR code on each table.
• Try new dishes as limited-time items to test popularity.

7) Thinking I Can Do Everything Alone

I wore all the hats: owner, manager, marketer, host, cashier, even janitor. At first, it felt powerful. But soon, I was burnt out, frustrated, and making bad decisions.

Real Scenario:

One day, a customer asked me if I was okay — because I was serving food while sweating buckets, looking like I just ran a marathon. That night, I realized: that isn’t sustainable.

The Fix:

• Build a small, reliable team.
• Delegate and trust them.
• Automate what you can (POS, reservations, payroll).
• Take one day off per week because your brain needs rest too.

8) Not Having a Budget Plan

When I first started, my budget plan was basically: “Don’t worry, it’ll all sort itself out.” Spoiler alert: it didn’t. 

I was spending like a Netflix star, with new lights, premium chairs, expensive menu printing, and didn’t realize that money was flying out faster than it came in.

Real Scenario:

One month, I had decent sales but literally couldn’t afford to pay the rent. Why? I had no clue where the money went. That was the moment I realized “hope is not a strategy, a budget plan is”.

The Fix:

• Create a monthly budget for fixed costs (rent, salaries, electricity).
• Set aside emergency cash (at least 1 month’s expense).
• Track variable costs (inventory, marketing, packaging).
• Use a simple Excel or Google Sheet for planning.

9) Ignoring Feedback and Online Reviews

I used to get super emotional about bad reviews. Like bro, how dare someone say my wrap was “average”? I made that with love!

But then I realized — every review is a goldmine. Not a personal attack. Ignoring feedback was ignoring free advice.

Real Scenario:

One guest said, “Too noisy, couldn’t enjoy my meal.” I was like, “What am I supposed to do, give noise-cancelling headphones?” But then I installed a few sound panels and dimmed the music a bit — suddenly, more people started hanging out longer.

The Fix:

• Reply to all reviews (good & bad) with grace.
• Use feedback to improve ambiance, food, and service.
• Keep a suggestion box or QR feedback code on tables.
• Share positive reviews on your socials (they build trust).

10) Skipping Legal Licenses

Let me be honest — paperwork sucks. So I thought, “I’ll do all the license stuff later.” But then, hello surprise inspection!

Real Scenario:

One day, a health officer came in and asked for a food safety license. I smiled and said, “Oh I’m still working on it.” He smiled back and handed me a fine.

The Fix:

• Get your basic licenses (Here’s the complete list of the essential licenses & permits).
• Display important ones near your entrance.
• Consult a local agent or CA to fast-track the process.
• Never operate in “hope nobody finds out” mode.

11) Not Building a Loyalty System

Repeat customers are pure gold. But I was so busy chasing new customers that I forgot about the ones who already loved me.

People who eat at your place 3–4 times? They’re ready to come 30 more times — if you give them a reason.

Real Scenario:

One customer came in every Friday. In the 5th week, I gave him a free dessert “just because.” Guess what? He brought 3 friends the next time — and those friends brought dates. Loyalty pays, literally.

The Fix:

• Start a punch card system (Buy 5, Get 1 Free).
• Offer a free drink or dessert on the 5th/10th visit.
• Create a simple WhatsApp broadcast group for offers.
• Use a POS system that tracks returning customers.

Final Thoughts 

If you're just starting out, don’t worry — mistakes are part of the game. But the faster you recognize them and fix them, the smoother your ride becomes. I made these 10 mistakes so you don't have to.

And hey, if you’re looking for a POS system that understands the chaos of running a restaurant — Butter POS is your best friend. Trust me, I use it every day.

Get a Free Demo Now: https://butterpos.com/contact-us.