Tom Higgings opened his restaurant on April 15, at Benson University on Restaurant Row. He was pleased when he found this place because he thought it was the perfect location to open his restaurant; however, his business is not running well for a lot of reasons. He did not have enough money to afford professional cooks, he over priced the menu and he does not have employees to run the business.
First, he spent too much in renovations and painting, causing him to end with an overpaying. It means that he wanted to build the restaurant so fast, that he forgot about the money he had started with. So, he couldn’t have enough money to continue with the restaurant.
Second, because he didn’t have money, he couldn’t pay professional cooks. Therefore, he had to hire students without experience to start cooking for his restaurant. It might cause him trouble, because a restaurant is based on the food they are cooking, and if the food isn’t high quality then the clients won’t be satisfied as in other restaurants.
On the other hand, finding cooks without experience wasn’t the top mistake. He also decided to over-price his food because he was broke, and it creates students to stop coming. They stop coming because as a student, we have enough money to pay our rent, books, and perhaps, parties. So, what we search is the cheapest restaurants to be able to pay our necessities.
In conclusion, Tom Higgins big mistake was to build his restaurant as fast as he could. He didn’t have enough time to think about the restaurant priorities because he focused only on the dream of opening a restaurant and not on developing the restaurant to become the source of income he wants it to be.