Many delis and restaurants nationwide didn’t survive the COVID pandemic, and others barely made it through. However, even though Kimberly Usher bought her deli months before the pandemic lockdown, she has an exceptional story of how Kimmy’s Deli survived the COVID crisis and successfully grew afterward.
Kimberly owns Kimmy’s Lakeway Deli in Metairie, LA. Opened in 2019, her deli offers home-country cooking food from its location in the One Lakeway Tower Building. It’s open for breakfast, lunch, and dinner. She also owns Drye Supplies, an appliance store that sells scratch-and-dent and new appliances inside a 2,000-foot showroom in Jefferson, LA.
In 2019, Kimberly bought what would become Kimmy’s Deli at a popular spot in the office building she used to work in years earlier. The former owner had done well in this location. However, Kimberly felt she could do better with home-country-style cooking instead of boxed meals. Coincidentally, Kimberly bought the deli around the same time she took over Drye Supplies from her ailing ex-husband.
Situation
Within one month of taking over the deli, the monthly revenue from the business went from $25,000 a month to $67,700 a month. But the COVID pandemic came, and the lockdowns hit Kimmy’s Deli particularly hard. Since almost all the building’s occupants had to work from home, most of the businesses in the One Lakeway Tower building shut down completely. But Kimmy’s Deli stayed open, even though the business only served one or two customers daily. Also, the employees didn’t miss a paycheck during the pandemic lockdown, thanks to Kimberly’s relationship with Zinch. Kimberly contacted the Zinch team because she needed working capital to cover payroll during tight spots, keep up with inventory, and stay current on the business’s bills.
Since Kimberly had used Zinch for an earlier business purchase, she knew the Zinch team was easy to work with. She commented, “ It was fast. It was so awesome. Even though the percentage rate was higher, they’re taking a risk. I know that. That’s a reality with small businesses.”
Solution
Kimberly’s businesses didn’t have the near-perfect financials that banks require. But 98% of Kimmy’s Deli and Drye Supplies’ income comes from credit card sales. This factor made Kimberly an excellent merchant cash advance (MCA) candidate. Based on the strength of Drye’s credit card receipts, Zinch gave Kimberly the lump sum of cash she needed in return for a percentage of her future credit and debit card receipts. Zinch also gave her a cash advance to buy new equipment, displays, and lift trucks to help Drye Supplies handle the increased business during hurricane season.
Results
Through her merchant cash advance from Zinch, Kimberly had the working capital to help Kimmy Deli survive COVID and return to prosperity. Kimberly added, “ They [Zinch] are great. It’s nice to have someone who believes in you and is willing to help you.” Kimberly appreciates the responsive customer service and fast funding so much that she refers other business associates to Zinch.
