There are many conventional — as in tried and true— ways to use a restaurant loan for business growth, such as: opening new locations, adding new menu items, hiring new staff, buying new equipment (e.g. ovens, freezers, fryers, etc.), and renovating space.
However, in addition to these smart and strategic options, there several additional innovative, yet lesser-known ways to use a restaurant loan to drive business growth. Below, we highlight 4 of the most valuable:
Negotiate Discounts with Suppliers
A restaurant loan gives you additional negotiating leverage when dealing with suppliers, which lowers your costs and boosts your bottom-line. For example, you can offer to pay cash on delivery (COD) or make a send through a purchase order in return for a significant discount.
Get Caught Up with Suppliers
Sticking with suppliers: a restaurant loan can help you pay off overdue accounts, which eliminates interest charges that are typically between 20 and 40 percent per year. Offering to clear an overdue account right away with a single check can also give you some additional negotiating leverage.
Launch a Loyalty Program
The value of customer loyalty can’t be underestimated, and in the long-run makes or breaks a restaurant’s success; and frankly, its survival. A loyalty program — which could be an independent initiative, or a tie-in with a more established program like Air Miles — can incentive customers to return and refer. And if you’re concerned how long it might take to generate ROI, keep this inspiring statistic in mind: 8 out of 10 customers are willing to pay more to businesses they respect and admire.
A mobile app is an innovative way to connect with customers and share information on promotions, contests, news (e.g. new menu items, expanded holiday hours, etc.), and the list goes on. What’s more, developing an app isn’t the massive 6-figure project that it was many years ago. Several firms now specialize in creating apps for retail/B2C businesses, and having one developed can often be done for less than $10,000.
At National Business Capital, we proudly support restaurant owners across the country with customized financing solutions, such as working capital loans, merchant cash advances, inventory financing, equipment financing, commercial mortgages, business lines of credit, and more.
Fill out our two minute application now and you’ll receive a funding decision in 24 hours or less! If you’re looking for more ways to grow your restaurant with the help of business funding, look no further than our FREE eBook “7 Profitable Opportunities That You Could Miss Without More Business Funding“ today: