By Matthew Gillman, Contributor
Everyone in the restaurant industry knows just how competitive it is. And one of the best ways of succeeding is standing out from your competitors. That means making improvements to your restaurant.
Unfortunately, making restaurant improvements comes at a price. Whether you need to revamp your interior, implement a new marketing strategy, or offer delivery services, a restaurant business loan gives you the working capital you need to take your restaurant to the next level.
If you’re planning to apply for a restaurant business loan, here are some of the tips to make the most out of it.
Give Your Restaurant a Makeover
Restaurant owners know that dining at a restaurant is not just about the food; it’s about the overall dining experience. Even if people love your food, there’s a great chance they won’t visit again if they aren’t pleased with your restaurant’s ambiance.
If sales are dipping, you might want to think about giving your restaurant a makeover. You want to make sure that your restaurant is comfortable and inviting to encourage patrons to visit again. Before you renovate or update your interior, there are a few factors you may want to consider:
Check kitchen efficiency.
Focus on high-demand areas of your restaurant.
Know your guests demographics.
Going on “trend” may not be a great idea since trends can easily go out of style.
Whether you’re going for a full-on renovation or a few interior updates, a restaurant business loan can definitely come in handy to give you the capital to create your dream design.
Invest in Effective Restaurant Marketing
In this saturated market, the way you market your business is a crucial part of your success. However, restaurateurs often cut the marketing budget whenever their restaurant is facing cash flow issues. This is actually counter-intuitive, given the benefits of marketing:
Increase in Sales
Attract New and Loyal Customers
Wider Reach
Develop a Distinct Brand Identity
And the list goes on and on.
An engaging marketing strategy helps in improving the overall dining experience. One of the tried and tested methods of getting your message across your audience is to advertise on Google. You need to create a Google My Business account and bid on ad placement. As long as you optimize your Google My Business ad correctly, your target audience will see your restaurant when they search for “restaurants near me.”
For a wider reach, you can combine your digital marketing efforts with traditional methods of marketing. You can sponsor a local event, hand out flyers outside crowded areas, or place an ad on television. Both traditional and digital efforts can improve brand awareness and, in turn, increase sales.
Purchase or Repair Equipment
Daily wear and tear can take a toll on your kitchen equipment. At some point, your stove, ovens, dishwashers, and microwaves may need to be replaced or repaired. These repairs and replacements can be costly and can cause a dent in your cash flow.
A restaurant business loan can help provide you with additional working capital to replace or repair your equipment. There are different types of loans you can choose from. Some may even allow you to use the equipment you’re going to purchase as collateral for the loan so you wouldn’t have to pledge any of your valuable personal or business assets.
Provide In-House Delivery Services
Did you know that 60% of Americans order food via delivery or to-go at least two times per week? If you don’t offer delivery services just yet, you might want to offer one soon. People value convenience when it comes to ordering food and successful restaurateurs leverage this by offering delivery services.
With restaurant financing, you can purchase delivery trucks or hire a transportation service to deliver food to your customers. To make it more convenient for your guests, you can add online ordering features on your website or app.
If you’re one of the many entrepreneurs who don’t have time to handle logistics, you list your restaurant on on-demand food delivery platforms. When someone types “chicken quesadillas” or “mushroom pesto,” your restaurant will pop up if you serve those dishes. Your customers can easily place their orders on the app, pay for the meal, and have it delivered to their doorstep.
It’s important to remember that creating apps and adding more services can be costly. A restaurant business loan makes sure that you have the necessary working capital to help you.
The Best Type of Restaurant Business Loan for You?
People often ask, “Which the best type of loan for my restaurant?” The truth is, every business is unique; and when it comes to business loans, one size does not fit all. Finding the best loan for your restaurant requires a thorough evaluation to see which one makes the most sense financially.
About the Author
Matthew Gillman is the CEO and founder of SMB Compass. I am a trusted business financing expert with $150 Million+ in direct lending experience. While I'm not in the office I enjoy spending most of my time with family and close friends. Whether it be on the beach surfing, or in the mountains skiing, my favorite thing to do is to just be outdoors.
