The 7 Best Loans for Restaurants

Feb 9, 2020

The 7 Best Loans for Restaurants


If there’s one constant in the restaurant industry, it’s change. Patrons have evolving preferences, suppliers can be fickle, inventories fluctuate, and each season brings new considerations. At the same time, most restaurant owners aren’t in the business for consistency. They’re driven by a passion that never changes.

When it comes to funding that passion, multiple small business loans can meet the unique needs of the restaurant industry. So whether you want to start your first restaurant, sustain your current one, or expand to new heights, rest assured that you have options.

All the while, bear in mind that the expenses related to running a restaurant are hard to predict. As Forbes explains, “It almost always costs more than anticipated so a contingency is also a good idea to have in the budget.”

When starting a new restaurant, it can be tempting to frontload the budget and then assume the expenses will throttle back within the first few months of operation. It’s true that it takes a lot of money to get a restaurant off the ground, but keeping it airborne also requires ample capital. And undercapitalization is a major contributor to restaurant failures nationwide.

“Knowing how much money you need to launch the restaurant is only the tip of the iceberg,” says Gary Occhiogrosso, an expert of restaurant development. “You must assess ongoing cash needs while the restaurant is newly opened and gaining momentum […] Considering capital needs for the first 12 to 15 months is not only prudent but essential to the success of any new restaurant. You must be prepared to cover the operational costs and expenses as the restaurant ‘ramps up.’ Carefully consider your cash needs and how much working capital you must have on hand, ready to deploy.”

About the Author

Grant Olsen

Grant Olsen

Grant Olsen is a writer specializing in small business loans, leadership skills, and growth strategies. He is a contributing writer for KSL 5 TV, where his articles have generated more than 6 million page views, and has been featured on and Grant is also the author of the book "Rhino Trouble." He has a B.A. in English from Brigham Young University.

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