& Working Capital
While restaurants were historically viewed as a risky space by lenders, market data regarding the industry has become more sophisticated and more readily available, allowing global, national and regional commercial banks to conduct more effective underwriting. There’s also an increased demand in the restaurant world for senior debt, due to franchisees continually opening new stores, remodeling, and buying and selling real estate.
Prior to COVID-19 Pandemic, 2019 was the first time in history Americans spent more money at bars and restaurants that at grocery stores. Even during times of recession American’s often don’t give up dining out entirely, which gives the restaurant industry the projection of potential long term sustainability.
Since the COVID-19 outbreak, the restaurant industry has been hit very hard. Some owners have strategically developed plan to adjust their business model according to social distancing and Government Requirements and stay open, others have decided to exit the industry, while some have viewed this as an opportunity to expand and service more territory. For someone looking to entry the industry there could be an opportunity to establish a strong lease, and discounted services from vendors.
There are many temporary, and long term options available for financing the Restaurant Industry. Contact someone on our team who can review your situation and structure the right loan to get you funding.