Robert Herjavec, the Croatian-Canadian business mogul known for his tech ventures and TV appearances, has seen it all in the startup world. However, his vast experience has taught him that not all business concepts are cut from the same cloth. In a recent TikTok video , the 62-year-old "Shark Tank" investor revealed the three business types he'd never touch.
His insights offer valuable lessons for anyone considering starting their own venture. At the top of Herjavec's list is the restaurant industry, a category he swiftly dismisses due to two primary factors: cash and time. Herjavec argues that these two commodities are invaluable for any entrepreneur, and restaurants notoriously drain both at an alarming rate.
"The failure rate of restaurants is huge," he points out, referencing the well-known statistic that many restaurants close their doors within their first year of operation. However, it's not just the high risk that deters Herjavec. Restaurants also demand a substantial time commitment.
Owners often find themselves tied to long hours on-site, managing staff and operations, leaving little room for flexibility or scalability. Codie Sanchez , a multi-millionaire entrepreneur and CEO of Contrarian Thinking echoes Herjavec's sentiment, believing that the restaurant business is almost always a losing proposition. Restaurants consume vast amounts of time, require significant cash infusions, and offer meagre returns.
Even profitable restaurants often struggle to generate substa.