Food for Thought: Analysing the Pitfalls that Lead to the Demise of New Food and Beverage Businesses
Prof. Ajay Kr. Varshney, KLBS, Koneru Lakshmaiah Education Foundation, Guntur.
Edara Sriram, 2300569008, KLBS, Koneru Lakshmaiah Education Foundation, Guntur.
Koduri Kalyan Bhupathi, 2300560403, KLBS, Koneru Lakshmaiah Education Foundation, Guntur.
Kastawar Viswajeet Singh, 2300560163, KLBS, Koneru Lakshmaiah Education Foundation, Guntur.
Shaik Muddasseer Basha, 2300560175, , KLBS, Koneru Lakshmaiah Education Foundation, Guntur.
Abstract
The food and beverage industry constitutes a fiercely competitive and active sector with a high failure rate for new firms. Despite its appeal, a considerable number of food and beverage businesses fail to make it past their initial year of operation, resulting in huge financial losses and lost resources. This study seeks to analyse the fundamental causes of this phenomenon, with a particular emphasis on identifying the major flaws that lead to the failure of newly established food and beverage firms. This study uses a mixed-methods approach, integrating qualitative and quantitative data, to give a detailed understanding of the problems that new enterprises confront in this industry. The findings emphasise the crucial role of market analysis, financial preparation, operational efficiency, and agility when assessing the success or failures of new food and beverage businesses. The study also investigates the way additional factors, such as severe rivalry, compliance with regulations, and supply chain interruptions, contribute to business failure. The findings of this study have important implications for entrepreneurs, legislators, and industry stakeholders, as they provide useful insights into the obstacles that new enterprises confront in the food and beverage industry and emphasise risk-mitigation measures. Understanding the primary dangers contributing to business failure allows new enterprises to build targeted strategies that increase their likelihood of success and long-term viability in an extremely competitive marketplace.
