How Restaurants Can Put a Successful Financial Plan on their Menu
Starting a restaurant has long been many peoples’ dream. However, the industry is under constant pressure from changing consumer demands and banks and lenders that are becoming more risk averse.
It has always been a financial risk to open a restaurant, but the current landscape does offer hope for entrepreneurs. Specialty private equity shops are one way of raising funds to start a restaurant, as is utilizing personal contacts. Christa Jaganath, a senior audit manager at Briggs & Veselka Co in Houston, TX says there is also another emerging method of securing capital.
“The benefit of crowdfunding is that you now have people like me and you who can essentially provide $100 or $1,000, almost like you’re fundraising. So, anybody in the community can contribute money,” Jaganath said. “It provides this community involvement where they now feel like they’re involved in your restaurant, which means they are now going to bring their friends, their family, to the restaurant. It’s good marketing, and they want to get their money back as well.”
Jaganath recently spoke at the Texas Restaurant Association Marketplace about best financial practices in this ever-changing environment. As delivery becomes more prevalent and taste buds change, restauranteurs must be even smarter and more efficient than ever before.
Every dollar counts in an industry known for slim margins. How restaurants approach items like delivery services and consumer demands will determine which ones have a successful future.