National Pizza Day: How Your Pizza Restaurant Can Use Financing
Once you’ve acquired a loan for your pizza shop, it’s important to review your business plan and decide on how to use it. In this post, we’ll provide six ideas for you to consider, so that your restaurant can be the most popular spot in town!
6 Ways to Use a Loan for Your Pizza Shop
1. Invest in a Bigger Space
When customers visit your pizza shop, they’ll probably want to sit and enjoy their food. If your space is too small, they could take their business elsewhere. Therefore, you could use your additional business financing to expand your existing space or move to a larger location. Although expansion projects can be costly and time consuming, especially if they involve purchasing or redesigning real estate, they can ultimately lead to increased sales in the long-term. That’s why you should contemplate expanding when you acquire business financing.
2. Expand Your Menu
Even if your pizza shop has items that are considered customer favorites (perhaps you specialize in a killer pepperoni pizza), it never hurts to add new options for them to try. Take advantage of the business financing you’ve received by purchasing ingredients needed to introduce some new menu options. You could offer more types of pizza, or expand into new markets by offering salads, frozen pizzas, calzones, pasta, dessert, or other types of food. Hopefully, an updated menu will translate into more loyal customers!
3. Hire More Employees
If business is booming, it might be time to grow your team. Don’t risk losing customers by being understaffed. If wait times for food or tables are long, they might lose interest and decide to visit a different pizza place instead.
With your business financing, recruit more employees so that every aspect of your pizza shop is covered. For example, you can hire chefs, waiters, and hosts. You won’t regret investing in your staff, since it will likely improve the overall productivity of your operations.
4. Increase Marketing Efforts
It’s important to brainstorm ways that you can generate more business for your pizza shop. Even if you’re receiving business from consistent customers, you shouldn’t get complacent. Plus, you’ll want to try to compete with nearby pizza shops, in addition to popular pizza chains that might also be in your area (like Pizza Hut or Sbarro).
To accomplish this, use your additional funds to increase marketing initiatives. Below, you’ll find a few suggestions of ways that you can market your pizza shop:
- Sponsored Social Media Posts: Using platforms like Facebook and Instagram, you can target social media users in your area who might be looking for a local pizzeria.
- Print Advertisements: Pay for advertising space in local publications.
- Direct Mail Marketing: Send mail pieces (like an eye-catching postcard or a menu) to your mailing list.
- Radio Advertisements: Start advertising your pizza shop on local radio stations.
- Email Marketing: Send out weekly emails informing patrons of your latest specials and other important information.
Whatever you decide, ensure that you’re monitoring the success that each initiative has. If a marketing plan isn’t bringing in business, use your financing for other ideas.
5. Improve Cash Flow
As you probably know, cash flow can make or break a small business. So, if you find that your pizza shop’s cash flow has declined, it might be beneficial to use your term loan for this area. Having cash flow that you can use to pay bills, place inventory orders, and afford emergency expenses is crucial, so consider how you can improve your cash flow with a loan.
6. Update Equipment
Is your pizza shop using an outdated oven, fridge, or other necessary equipment? Or perhaps equipment is broken or frequently requires repairs? If so, it’s time for a change! Utilizing your business loan, you can replace this equipment, which will allow you and your employees to be more productive.
Running a pizza shop can be a rewarding entrepreneurial venture, but it’s imperative that you spend your business finances wisely. After receiving a restaurant loan, you can develop areas of your operations that might be lacking. Whether your pizza shop is understaffed or needs a menu makeover, additional financing can help!
We hope that these tips inspired you, so that you can start thinking of ways to grow your business on National Pizza Day. If you have tips for fellow business owners in this industry, please share them with us in the comment section below!
Editor’s Note: This post was updated for accuracy and comprehensiveness in February 2019.
Editorial Note: Any opinions, analyses, reviews or recommendations expressed in this article are those of the author's alone, and have not been reviewed, approved, or otherwise endorsed by any of these entities.