Around 60 percent of new restaurants fail within the first year. And nearly 80 percent shutter before their fifth anniversary.

How many restaurants fail per year?

What they find is that only 17% of restaurants close in the first year, not 90%. This is in fact a lower failure rate than other service providing businesses, where 19% fail in the first year.

What is the average lifespan of a restaurant?

The median lifespan of restaurants is about 4.5 years, slightly longer than that of other service businesses (4.25 years). However, the median lifespan of a restaurant startup with 5 or fewer employees is 3.75 years, slightly shorter than that of other service businesses of the same startup size (4.0 years).