WARWICK has become saturated with eateries, as far as Mussels owner Fred Moncada is concerned.

With 81 places to grab something to eat in the Rose City, and more on the way, our population of 12,000 is well and truly spoilt for choice.

Mr Moncada said he was deeply concerned for Warwick's hospitality industry if the city continued to have cafes and restaurants sprouting up "willy-nilly".

"Paddington in Brisbane only has 31 places to eat, so the fact we have 81 is just ludicrous," Mr Moncada said.

He said Warwick did not have the population to support so many eateries.

"If seven new restaurants pop up, we should have a population increase of 15,000, but recently we've had eight extra cafes, but no influx in population - it's mind-boggling," Mr Moncada said.

While some might think this restaurant owner was just shying away from a bit of competition, he was adamant was not the case.

"It might come across as whingeing, but I am genuinely concerned that the hospitality industry is in trouble," Mr Moncada said.

"I'm a big believer in competition, but there is a line between stupidity and competition."

Mr Moncada said the number of eateries meant most businesses were just scraping over the line, when they should be thriving.

"The only way to fix this is to regulate it - I believe every restaurant or cafe should have industrial range hood and kitchenware and not be allowed to cook meals from a conventional stove or the like.

"The council need to bring in a set standard so it's fair for everyone."

A bank managerial assistant said she saw many applications for loans to set up businesses in town and also saw many "crash and burn".

She said when prospective business owners approached the bank, a higher party had to approve the loan and during that consultation process they would ask the banker just how many similar businesses were in the same area.

When bankers reply that there were in fact 81, she said they requested that the prospective business owner convince them just what they could do differently from their competition.

"They have to have something more than just a gimmick, something really different and new and not just be like the others," the bank official said.

Otherwise, she said, the business risked falling by the wayside after its honeymoon period.

"I wouldn't say it was unwise (to open another eatery in town), but you've got to have something really great that stands out."

Cherry Tree owner Scott Morton said while his was a fairly new business in town, he was pleased he opened when he did.

Mr Morton said only the strongest businesses would survive in the current market.

"I'm not too concerned because I think if you have a good product and good staff you can survive," he said.

"In saying that, I think you have to be good all of the time and you can't drop the ball.

"It comes down to food presentation and attention to detail all the time because if you have one dodgy meal, they'll tell five or six people about it and you'll lose business."

Mr Morton urged any prospective eatery operators considering the Rose City as their base, to conduct a thorough risk assessment and ensure they knew what they were heading into.

"I'm not sure if anybody would want to start up (an eatery) because we're already flooded," he said.

"There would have to be better places to do it."