How to Use a Restaurant Loan
In this post, we’ll explore five ways that you can spend your restaurant working capital so that you can continue to grow your operations.
How Can Additional Restaurant Working Capital Be Used?
1. Add New Items to Your Menu
Is your restaurant’s existing menu starting to seem blasé? It might be time for a refresh! Adding to your menu could help you acquire new customers that weren’t previously interested in your options. With your restaurant business loan or merchant cash advance, you could invest in an updated menu. To do this, you may need to purchase additional restaurant inventory, so that you’ll have the correct ingredients for new menu items.
2. Expand Your Business Location
If your restaurant has proven to be a success, it might be time to consider an expansion project. With your restaurant working capital, you could open another restaurant location or expand your existing space. Both options could end up being expensive, so review your budget, and see if your working capital will be enough to finance the project. If you are confident that an expansion project could boost your business’s future sales, then it may be worth the time and money.
3. Update Interior
Giving your restaurant a makeover might be a good idea, especially if it has been awhile since you made interior updates. Your restaurant should be a comfortable and inviting place for patrons to visit. This means you may need to replace tables and chairs, clean carpets or floors or add decorations that reflect your restaurant’s theme. Luckily, you have additional working capital available, so you’ll be able to easily make these renovations if necessary.
4. Roll Out Extra Services
Having a restaurant location is great, but did you know there are other restaurant ventures that you can expand into? Adding delivery services, catering events or starting a food truck side-business can all majorly increase your business’s sales. Still, to make these endeavors a success, you’ll need to invest in them first. Using your additional working capital to pay for transportation, extra restaurant inventory, marketing and other necessary aspects will help you get off to a strong start.
5. Hire More Employees
If you’ve been short-staffed, you should think about using your financing for payroll. Hiring extra employees will ensure that you can serve more customers, while being understaffed can translate into poor customer service. Your customers’ experience should never be put at risk, so consider saving your financing for payroll.
Once you receive a restaurant loan, you’ll need to decide on how you should use it. With these five suggestions, we hope you’re able to find a way to improve your restaurant business!
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.