The restaurants that are growing the fastest nowadays are a unique breed to say the least. Their menus focus on specialties rather than variety, and they cater to very specific audiences with high demands. Despite sharing the same basic core values, each one strives to be different so that customers will remember more than just the taste of their food. As if this industry wasn’t fickle or cut-throat enough, it seems that running a successful restaurant in 2017 means eliminating anything remotely average – ingredients, customer service, advertising, etc.
You’ve got to have something special, which is why it’s no surprise that many new food service-related businesses were started by people who were already massively successful in their own right, and therefore had plenty of funding to work with. But this is usually not the case with smaller restaurants, which must seek additional restaurant funding from companies like United Capital Source to stay competitive.
Here are 4 advantages small business loans can grant up and coming restaurant businesses:
FINDING THE SUPPLIERS YOU NEED
Among UCS’s widely praised unsecured business loans is accounts receivable factoring because it allows smaller businesses to work with larger or important clients that might not pay in time for the business to meet its accounts payable pressures. Clients that use accounts receivable factoring can entice new clients by offering them more convenient terms without having to worry about waiting several months to get paid or take precious time out of their day sending invoices or emails for delinquent payments. This same concept applies to restaurants and suppliers or distributors that carry vital ingredients.
Some pizzerias, for example, attribute their popularity to the fact that they get their marinara sauce directly from Italy. The makers of the sauce, however, might need to be paid to keep their operation running when sales are on the slower side for the pizzeria. There’s also the likelihood of the cost of the sauce increasing as profit margins stay the same or the pizzeria is occupied with another sudden expense. But with a restaurant business loan from UCS, the pizzeria could purchase multiple seasons’ worth of this key ingredient or simply procure it within a time frame that lets the pizzeria serve even more customers during a traditionally busy period.
COORDINATING NEW STAFF AND EQUIPMENT
Speaking of demand, two integral tools for maintaining excellent service are up-to-date equipment and a reliable team of workers. UCS can provide the means for obtaining both, possibly at the same time to prevent confusion from switching from one system to another. Our restaurant business loans can be distributed at a time that allows you to train new workers right as you are preparing to introduce new prep stations or digital cash registers. Most restaurants conduct a great deal of sales via credit card, making them perfect candidates for our low-rate credit card processing loans. This unsecured business loan is geared towards long-term investments that take time to thicken your revenue stream, and that includes essential team members.
Think of the coffee shop you visit every morning. The manager is well-aware that his or her workers are the last people countless commuters see before beginning their work day, so it is crucial that they greet them in a friendly but highly-professional manner. Finding workers who possess these strengths or training them to do so could take up to a few months, but with a merchant cash advance, your payments would be negligible when sales are slow. Only when customers are quickly walking in and out of your hypothetical coffee shop, each with a food item that was skillfully recommended to them, would you begin making significant payments.
IMAGE > TASTE IN 2017
Another major benefit of credit card processing loans is not having to focus exclusively on keeping revenue high when you are entering your slow season. You can instead turn your concentration to your online presence, particularly social media, or developing new items. These two go hand-in-hand, since it’s safe to say that new items appear to have been designed with social media in mind. Whether it’s a giant doughnut or a gluten-free pizza, the appealing image of these items has proven to be more marketable than the taste. Small business loans against credit card sales, which are based on how many sales you are projected to make, give you the ability to launch marketing campaigns at the most opportunistic times with minimal impact on cash flow.
THE ONE FACTOR THAT CANNOT BE IGNORED…
Lastly, it’s frankly impossible to write an article about restaurant strategy without mentioning location. We understand the role of location in a new property’s success, but this can only be achieved if you have the funding required to secure the space the moment it becomes available as well as the time to train new workers to run it. Our restaurant business loans can not only be approved and distributed in a matter of days but also customized to accommodate additional expenses that might hinder operational funding for your original location.
The restaurant industry is changing, and it’s the job of companies like UCS to make sure smaller businesses are able to change with it. It might seem like the right workers, ingredients, or equipment is out of reach but our business funding experts have stayed up-to-date and know exactly how to maintain a steady budget while making continuous, cyclical investments throughout the year. With your work ethic and our financial guidance, you’ll gradually eliminate everything that is paining your business, one-by-one.