How your restaurant business could benefit from a loan
Whether you’re just starting out or are a few years into running your restaurant business, you know that it takes a lot of resources and money to keep it going. It might be overwhelming at first, considering how many big purchases need to be secured before you can even open your doors. It could also feel like there’s always a new expense, something broken, or a new business opportunity that you want to take advantage of that’s keeping your budget tight. For these and a dozen other reasons, taking out a restaurant business loan could be the right decision for your store.
4 Reasons why your restaurant business might need capital
When you’re just starting up, there is a never-ending list of things to buy. From big items like refrigerating units to small things like utensils, it can quickly become overwhelming. It can be tempting to buy second-hand ovens or cheap commercial dishwashers with mixed reviews to cut on costs. You might also decide that no one really looks at display cases anyway and use poor quality material or forget that price isn’t more important than comfort when buying chairs. Investing in the fundamentals of your business will allow you to provide the best quality food, experience and service possible to your customers. Don’t risk losing out on customers because something’s broken again or your POS system is glitchy.
Put effort and resources into creating a successful marketing strategy that promotes your restaurant online, offline and in store. Develop your strategy based on best practice and test out a variety of platforms to see what resonates with your audience. Online advertising can be done both organically and through paid sources. You can build a following for free by regularly posting great material (e.g. pictures of your food, drinks, staff, environment) and then dedicate part of your budget to promoting the content that’s getting the most engagement. Because of algorithms and ad prioritisation, gaining the extra resources via a loan to spend on ads could help you reach enough people to grow a loyal customer base.
Your staff can make or break your business. Chefs provide the food, and your hostesses/waiters provide the customer experience. Shortchanging talent by lowballing wages is a sure way to get zero loyalty and commitment from your employees. Show them you value their experience and talents by offering them competitive rates and invest in their training and development. By providing them with opportunities to grow, you will foster loyalty and success which directly impacts your customers and sales. Whether or not your staff care about their jobs, your customers will know.
Money doesn’t always perfectly flow in and flow out at equal rates. Sometimes things break, a busy season requires more staff, or your POS system needs upgrading. Devote the necessary amount of money to each key aspect of your business that impacts your ability to serve the best food and experience possible. Get the right kitchen and bar equipment to show off your chefs and bar staff’s talent. Have the cash flow available to jump on business opportunities like taking over the lease next door so you can expand or testing out a new marketing campaign. Give yourself peace-of-mind and wiggle room so that if something unexpected happens, you have the ability to pad out income and cover expenses.
Prepared by OnDeck Capital Australia Pty Ltd ABN 28 603 753 215 (“OnDeck”) for general information purposes only. Content may belong or have originated from third parties and OnDeck takes no responsibility for the accuracy, validity, reliability or completeness of any information. Information current as at February 2020. You should not rely upon the material or information as a basis for making any business, financial or any other decisions. Loans issued in Australia are subject to the terms of a loan agreement issued by OnDeck. Loans are subject to lender approval. OnDeck® is a Registered Trademark. All rights reserved.