Using Business Financing To Increase Your Restaurant’s Annual Profit

Last Updated on March 3, 2015

As a restaurant owner, your job description is endless. Whether it be serving customers, lending an extra hand in the kitchen on a busy night, bussing tables, or greeting guests, your plate is always full.  Most business owners do not have immediate access to additional capital to take their business to the next level. Nevertheless, this should not squash your hopes and dreams of expanding your establishment. 

Finding the ideal financing company to back your establishment is crucial. Whether you’re looking to expand, renovate, or purchase new equipment for your location, National Business Capital is here to show you how the right business loan can help grow your establishment while increasing your annual profit.

How The Right Financing Company Helps Your Profit

Let’s take a look of the following example: In this example our restaurant owner takes out a business loan of $50,000.  They use the funds to add 10 tables & 40 chairs which costs $10,000.  They install a new bar and CO2 system totaling $12,500 while adding new heating and lighting which costs $10,000.  They also do $12,500 worth of structural renovations.  Finally they spend $5,000 on table supplies and decor all for a grand total of $50,000. (Click the images to enlarge) Restaurant Use of Funds

Next we will examine the loan breakdown.  We already know that the restaurant owner has borrowed $50,000.  The loan is for a 12 month term.  Being that banks have tightened up their guidelines the business owner obtained a short term alternative financing program.  These programs come with a higher rate of interest than what the bank offers.  Even with the higher rate the business owner was still able to turn a significant profit.

Restaurant Loan Breakdown

So now let’s examine the sales increase breakdown.  The below numbers are based off industry norms and we are being conservative as you will notice we are only using 5 days out of the work week.  Most successful restaurants are open 7 days per week so the numbers may be even higher.

  • $240 in Daily Sales for every 1 Table Added (Based upon $40 Average Ticket Per Table x 6 Daily Operating Hours)
  • $240 in Daily Sales per Table x 10 Tables = $2,400 in Daily Sales
  • $2,400 in Daily Sales minus 81% for Expenses (National Average) = $456 in Additional Daily Profit
  • $456 in Additional Daily Profit x 5 days per week x 52 weeks =
  • $118,560 in Additional Profit Annually By Adding 10 Tables

Restaurant Sales Increase Breakdown

So, now our restaurant owner has $118,560 in additional annual revenue.  They pay their loan back which leaves them $53,560 in added revenue for the year.   We believe that most restaurant owners would agree that this deal makes sense.  The below picture is a final recap of the whole scenario.

Restaurant Expansion

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Click here to complete our 2 minute application or call us today! 888-888-9124 – Our professional and experienced business consultants are ready to answer any questions you have regarding financing for your business. When you choose National Business Capital, you get zero upfront fees, 24-hour approvals, and fast funding within days, not weeks, regardless of credit history.

National Business Capital & Services is the #1 FinTech marketplace offering small business loans and services. Harnessing the power of smart technology and even smarter people, we’ve streamlined the approval process to secure over $1 billion in financing for small business owners to date.

Our expert Business Financing Advisors work within our 75+ Lender Marketplace in real time to give you easy access to the best low-interest SBA loans, short and long-term loans and business lines of credit, as well as a full suite of revenue-driving business services.

We strengthen local communities one small business loan at a time. For every deal we fund, we donate 10 meals to Feeding America!

About the Author, Megan Capobianco

Megan is passionate about helping business owners along their journey - providing them with relevant content they can use in their day-to-day operations.

Disclaimer: The information and insights in this article are provided for informational purposes only, and do not constitute financial, legal, tax, business or personal advise from National Business Capital & Services and the author. Do no rely on this information as advice and please consult with your financial advisor, accountant and/or attorney before making any decisions. If you rely solely in this information it is at your own risk. The information is true and accurate to the best of our knowledge, but there maybe errors, omissions, or mistakes.