Restaurant failure in post-conflict Beirut: the macroenvironmental context and mismanagement

Abstract

Purpose Given the complexity of a post-conflict environment, the restaurant sector needs to be analyzed not just from the economic perspective. This paper aims to identify the diverse macroenvironmental and managerial factors underlying restaurant failures in Lebanon. The authors hope that this effort may help increasing restaurant success rates in other post-conflict settings. Design/methodology/approach The aim of this paper is to explain how macroenvironmental pressures influence the restaurant business and which managerial factors are most critical in a post-conflict context. The authors adopted a qualitative method by conducting face-to-face, semi-structured interviews. Findings The findings show that restaurant failures in a competitive and uncertain post-conflict environment were caused mainly by a snowball of internal organizational factors related to bad management, poor human resource management policies, inefficiency and fraud. Internal organizational factors can all be associated with human mistakes and bad decisions, including excessive initial investment, expensive decoration, inability to manage monthly expenses, bad communication and market research. Originality/value This study contributes to the literature regarding restaurant failures in post-conflict regions and presents results that are expected to help managers in family- and non-family-owned businesses to enhance their decision-making process.