How to Use Financing for Your Deli
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 post, we’ll explain the different ways that you can utilize financing for your deli.
Seven Ways to Use Deli Financing:
1. Hire More Employees
Delis can have some recurring issues related to staffing such as…
- The kitchen gets backed up easily because there are only have a few chefs on-staff.
- You have a limited service staff, causing your customers to endure long waits from ordering to receiving their food.
- Your business experiences quick employee turnover. Maybe you hire college students who go back to school in the fall, or your employees can only work limited hours.
If your deli business is plagued by any of these three staffing issues, it might be time to invest in payroll. By using your deli financing to hire and pay more employees, you can provide your customers a better dining experience.
2. Expand Your Menu
Want to increase sales? Add new items to your menu, and you’ll likely receive more business. Before expanding your menu, consider a few routes you can take
- Add 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.
- Add items that are currently not featured on your menu: Perhaps you don’t sell soups, but you’ve had customers inquire about soup options in the past. This might be something that you should add to your offerings.
Using your deli financing, you can pay for the ingredients to cook these menu items, and can also invest in printing new menus for your patrons to look at when ordering in-house.
3. Pay for Additional Services
If 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: Do your customers request food delivery services from your deli? If so, you should start offering this. To provide these services, you’ll need to purchase or lease at least one vehicle to make deliveries, in addition to takeout cutlery and other related inventory.
- Catering: Another service that patrons will appreciate is catering. You can market your deli business to local companies looking to have catered lunches, people that need catered food for parties, and other events. Use your financing to pay for catering transportation, service staff and other costs.
- Food truck: If you want to set your deli apart from competitors, open a food truck business on the side! Taking your deli business on the road will allow you to reach customers who haven’t visited your establishment previously.
4. Update Your Equipment
If 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 Improvements
Your 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 financing, you can update your deli’s tables and chairs, decorations, menus and anything else that needs some TLC. Your existing customers will be excited to see the improvements, and hopefully it will also attract first-time patrons!
6. Open a New Location
If your business is consistently flooded with patrons, why not open an establishment in another location? Of course, this project will be costly, which is why business financing can be beneficial. You can pay for construction costs, hiring more employees, and other operational expenses.
7. Pay for Marketing
Your deli might have some consistent customers, but these patrons can’t carry your business. As a business owner, you should constantly find new ways to earn additional sales through marketing efforts. This could be through sponsored social media posts, newspaper advertisements, direct mail campaigns, and other initiatives. As you test these efforts, determine which ones are generating business, and put more money and time into those achievements.
If you’re ready to elevate your deli’s food and services, apply for business financing! If you have already received financing for your deli, let us know in the comment section below how you utilized your additional working capital.
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.