Financial Advice for First-Year Restaurateurs

Restaurants are booming businesses. People enjoy eating out, whether for the culinary experience or the quality time spent with family or friends. Regardless of the motivation, the desire to enjoy food that they did not have to prepare personally is an enjoyable experience for many. As a restaurateur, you love cooking up good food and providing people with a culinary experience that will keep them coming back for more. However, restaurants can have a slow start as they work to promote themselves and build up a client base that returns time and time again. So what is a restaurateur to do?

Sooner or later, almost every restaurant owner learns that such a high percentage of restaurants fail in the beginning due to money problems. It takes a lot of capital to get a restaurant up and going. There are a wide array of costs incurred, ranging from equipment to food to supplies. Thousands of dollars can easily be spent before the first customer ever walks through the door. Starting a restaurant requires knowledge, skill, patience, perseverance, and deep pockets.

How can I keep my restaurant afloat?

To help keep your restaurant afloat, you need capital. This can come from money you saved before starting the business, from investors, or a line of credit. Let’s explore each of these further.


You likely spent a long time developing your plan for your restaurant. You spent time scoping out locations, building a menu, and analyzing the market. Hopefully, during your market research and preparation phase, you saved some cash as well. There are considerable start-up costs associated with running a restaurant, and many are incurred before you open your doors. While you likely will not have all the cash saved up beforehand, this is a great place to start.

Line of Credit

Your personal or business line of credit can also be accessed to help your doors stay open in the beginning. Lines of credit include both credit cards and loans. Small business loans are available, or you could seek out more traditional types of loans from your bank. In addition, you could access your line of credit through your business or personal credit cards to help you as you are just starting out.

A cash advance loan is another option to consider. You may be wondering, “What is a cash advance loan?” A cash advance loan allows you access to money earlier, but it comes with a hefty fee. Be sure you understand what you are signing and committing to and avoid getting trapped in the cycle of using cash advance loans regularly. Cash advance loans are short-term and unsecured loans. They are risky, so they often carry a high interest rate as well. This should be a last resort, not your first pick for keeping your restaurant open.


Depending on the type of restaurant you own and your location, you may have investors backing this business pursuit. These people contribute money in exchange for a portion of your business. While you may not want to give away a percentage of your restaurant, having access to people with deep pockets who see potential in what you are doing cannot be understated. This financing option will help keep your business afloat as you build up your customer base.


In conclusion, you have a lot on your plate when it comes to running your restaurant. As a business owner, you encounter no shortage of opinions on how you should run things. When it comes to financing your restaurant, be sure to do your research and have a solid plan in place. You will likely need more capital than you think you will, so be sure to explore all your options, including savings, investors, and lines of credit.

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Hi, Peachy here!

I'm a foodie mommy living in the Philippines. I'm a mom to two daughters named PURPLE SKYE and PERIWINKLE MOONE and wife to a loving husband I fondly call peanutbutter♥. I am a foodie by heart, a coffee lover and a froyo and yogurt junkie. Learn more →






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