Opening a restaurant is often described as one of the riskiest business moves you can make.
The long-standing belief is that 90% of them fail. Still, people keep doing it.
A recent thread on Reddit’s r/Entrepreneur tackled the question directly: “Why do people still start restaurants if they fail 90% of the time?”
Hundreds of current and former restaurant owners, workers, and observers chimed in.
Their answers paint a clear, candid picture of what really drives people to open restaurants despite the brutal odds.
Most Think They’re the Exception
Time and time again, people said the same thing: everyone believes they’ll beat the odds.
One person wrote, “They think they are special. To be the 10% you’d have to be both excellent in what you do, and also lucky.”
That mix of confidence, hope, and sometimes outright delusion is a recurring theme.
“People aren’t just motivated by prudence,” one person explained.
“Sometimes they think they make Papusas really well and want to see if they can have a go at selling them.”
It Starts With Passion—And Sometimes Ends There
Many restaurant owners start with nothing more than a love of cooking or serving others.
One person wrote: “Some people love cooking and want to make a living doing it on their own terms.”
For others, it’s about identity and meaning. “The dream of owning a restaurant is different than other businesses,” said another.
“It’s this romantic idea of creating a gathering place, feeding people, being part of the community.”
But as many people pointed out, passion alone doesn’t pay the bills.
Most Don’t Understand the Business Side
Cooking isn’t the same as running a business, and many don’t realize that until it’s too late.
“The ones that are doomed are the ones who think they have a unique idea and people will come in droves for it,” one person shared.
Another noted, “They desperately want to be business owners…and overestimate their skills.”
A few said it even more directly. “Most people underestimate how much of a restaurant is business, not food. Passion and good cooking help, but margins, staffing, rent, and consistency are what decide survival.”
Failure Doesn’t Always Mean What You Think It Does
Some challenged the 90% statistic altogether. Several users pointed out that first-year failure rates are actually closer to 20% to 30%, and many restaurants close for reasons that aren’t financial collapse.
“Just because a place closed in three years doesn’t mean they failed,” one person explained.
“There are many reasons places close. Partners want to move on, it makes money but not enough, lease issues, etc.”
One former manager at a busy, popular restaurant in Austin admitted: “I was shocked at how shakey the finances were. If I had a billion dollars, I’d definitely open a restaurant, but only because it wouldn’t matter too much if it didn’t work out.”
Undercapitalization, Ego, and Unrealistic Expectations
A major theme was undercapitalization, owners not having enough cash to survive slow months or surprise expenses.
“Margins are razor thin, and you have to spend all your time there,” one person explained of their family’s experience.
“We, the kids, have been providing free labor to help out for like 10 years to scrape by.”
Others pointed to ego and pride as common downfalls. “Most successful restaurant owners actually create their own failure,” one person wrote.
“They work 60 to 80 hours a week to maintain profitability, then open another location and neglect their money maker.”
Sometimes, It’s Not About Logic At All
Many people admitted that the decision to open a restaurant is often emotional, not rational.
“It’s the triumph of emotion over logic,” one said.
“People love the dream of owning a restaurant. And they chase that dream versus doing the logical thing.”
Or as another person put it, “People are not rational. The sooner you wrap your head around that, the better.”
What It All Comes Down To
The people who start restaurants aren’t naive or stupid; they’re dreamers, risk-takers, and in many cases, incredibly hardworking.
Some get crushed. Some scrape by. A few thrive.
But all of them, for better or worse, took the leap. And that’s the story behind the statistic.