October 20, 2021
Deli Financing: 7 Ways to Use a Deli Loan for Growth
Still, running a deli can be challenging due to the upkeep it requires. In addition, you might be competing with nearby establishments. Due to these reasons, many business owners apply for additional working capital to keep their deli operating successfully. In this blog post, we’ll explain the different ways that you can utilize financing for your deli.
How to Use Deli Financing
1. Hire More EmployeesDelis often suffer from recurring staffing issues such as:
- The kitchen gets backed up easily because there are only have a few cooks on-staff.
- You have limited staff, causing your customers to endure long wait times.
- Your business experiences quick employee turnover. Maybe you hire college students who return to school in the fall, or your employees can only work limited hours.
2. Expand Your MenuDo you want to increase your small business's sales, but can't afford to make the necessary investments? If you add new items to your menu, you’ll likely receive more business, making it easy to pay off your loan. Before expanding your menu, consider a few routes you can take, such as:
- Adding menu items that are like popular dishes that you already sell: For instance, if paninis are best-sellers, add a few more panini options to your menu.
- Introducing new items: Perhaps you don’t sell soups, but you’ve had customers inquire about soup options in the past. This might be something to consider adding to your menu.
3. Pay for Additional ServicesIf your deli is a success, why not capitalize on this by investing in new opportunities? In addition to in-house dining, use your financing to roll out delivery, catering, or food truck services. Below, we’ll further explain how to use your financing to bring these ideas to fruition:
- Delivery services
- Food truck
4. Update Your EquipmentIf your deli’s ovens, refrigerators, or other kitchen equipment have seen better days, you should contemplate using your financing for updating equipment. Having outdated or broken appliances can lessen or completely halt sales. Whether you want to repair existing pieces or invest in new equipment, this is a wise way to utilize financing.
5. Invest in Interior ImprovementsYour deli’s interior can make or break your business’s reputation. Even if your business is a casual establishment, it should still be clean and have a cohesive, branded theme. Using your business loan, you can invest in interior updates such as:
- Purchasing new tables and chairs
- Giving your interior décor an update
- Printing fresh menus
- Investing in anything else that needs some TLC
6. Open a New Deli LocationIf your hometown deli is consistently flooded with patrons, why not open an establishment in another location? Of course, this project will be costly, which is why applying for business financing can be beneficial. You can pay for the following expenses that come with opening a new deli location:
- Real estate
- Construction costs
- Hiring more employees
- Other operational expenses
7. Pay for Marketing ProjectsYour deli might have some consistent customers, but they can’t completely carry your business - you'll need to attract additional patrons. As a business owner, you should constantly find ways to earn additional sales through marketing efforts. This could be through marketing initiatives such as:
- Sponsored social media posts
- Newspaper advertisements
- Direct mail campaigns
- Other marketing programs
Deli Financing OptionsNow that you've learned about how you can improve your deli's business plan by pursuing business funding, it's time to consider your loan options, which include:
- Restaurant Loan: If you're interested in a small business loan for your deli, you can apply for financing from a business loan lender.
- Business Line of Credit: By taking out a credit line, you can borrow against your credit limit for business costs.
- SBA Loan: The SBA provides loans to business owners who can't secure traditional funding options.
- Business Credit Card: Some business owners decide to finance their business purchases by taking out a credit card. Although credit cards offer convenience, it's crucial that you avoid overspending. If you rack up credit card debt, your credit score will likely decrease.
- Merchant Cash Advance: If you receive a cash advance, you'll receive lump sum funding. In exchange, you'll remit a portion of your future credit card sales, depending on the amount of money you're generating through credit card transactions at the time.
Conclusion: Consider Your Financing OptionsIf you’re ready to elevate your deli’s food and services, apply for business financing! By investing in your deli, you'll have additional cash flow to use for various business expenses. If you have already received a deli loan, let us know in the comment section below how you utilized your additional working capital.
Editor’s Note: This post was updated for accuracy and comprehensiveness in October 2021.