Running a successful restaurant is no small feat. The industry is highly competitive and it’s common to operate on a tight margin. In many cases, making a capital investment is the key to taking your business to the next level. However, seasonal income fluctuations and other issues can make it difficult for restaurant owners to secure a traditional business loan.
Luckily, a restaurant merchant cash advance (MCA) can give you access to the funds you need so you can grow your business and improve your bottom line. Here are five ways you can use an MCA to increase your revenues.
1. Revamp Your Menu
An optimized menu is one of the best ways to improve your restaurant’s profit margin. Doing this correctly requires you to spend time evaluating your current menu’s price points, the popularity of the items, your food costs, and more. Since the evaluation process can be complex, you may consider using MCA funds to hire an expert who can complete the analysis and make recommendations.
Experimenting with specials and new menu items may require you to spend money purchasing additional ingredients. Once you’ve finalized your updates, you’ll also need funds to cover the cost of printing new menus. Since there are no restrictions on what you can do with MCA funds, you’ll be able to easily take care of all these costs and more.
2. Hire Additional Staff
The quality of the service can make or break a restaurant. If your patrons are subjected to long wait times and sub-par service, there’s a good chance they won’t return. A merchant cash advance for restaurants can help you cover the costs of additional staff, from your servers to your dishwashers. Sometimes, investing in a well-known chef can help take your restaurant to a whole new level.
You can also use MCA funds to bring in professional trainers who can sharpen your staff’s skills, ensuring they’re ready to provide a stellar dining experience to every customer who walks through your doors.
3. Upgrade Your Equipment
Restaurants operating on a tight margin may put off making much-needed equipment upgrades, but this can be a serious mistake. If it’s been years (or even decades) since you’ve purchased new equipment, there’s a good chance the technology has come a long way. Not only can new equipment make your kitchen much more efficient, but it may also improve the quality of the food and drinks you serve.
A restaurant merchant cash advance can allow you to purchase upgraded equipment when it’s convenient for you and make monthly payments based on your credit card sales. This can also make it possible to purchase and install equipment and train your staff during the slow season, so you’re ready to really make a splash when demand picks up again.
4. Expand to a New Location
Relocating your current restaurant or opening a second location can be a major game-changer. However, there’s often a significant cost involved, which can make restaurant owners hesitant to take the leap. If you’ve had challenges with your credit score or you have a significant amount of other debt, you may also find that you can’t qualify for a traditional business loan.
However, you can typically get approved for a merchant cash advance even if you have credit challenges. An MCA from Zinch also does not require collateral or a personal guarantee.
5. Increase Your Marketing
Making an investment in your marketing can help you attract new customers and create significant streams of recurring revenue. There are many affordable ways to advertise your restaurant, from digital ads and social media to magazines or direct mail.
The money you get from your MCA can give you the flexibility to explore creative marketing tactics. For example, you may consider starting a loyalty or reward system to encourage repeat business. Selling branded items like hats, shirts, and glassware can give you an additional revenue stream while also creating free advertising for your brand. These are just a few of the many options available to you.
Need a Restaurant Merchant Cash Advance? Get Pre-Qualified Now!
A merchant cash advance may be exactly what you need to improve your restaurant’s profit margins. You can pre-qualify with Zinch in just a few minutes and see how much business financing you may be able to access.
Contact us at (714) 500-6622 to learn more about your options. You could qualify for up to $250,000 in just 24 hours.
