Once you know what a merchant cash advance is, the next question to pop into your head could be “What can I use a merchant cash advance for?” With so many possibilities, it could seem daunting to make plans to use this cash infusion for your restaurant. This series will help you focus on aspects of your restaurant business that could benefit from a merchant cash advance.
Part Two of this series focuses on making back of house updates with merchant cash advance.
Many restaurant owners will use additional cash from a merchant cash advance to make updates and upgrades to their front of house operations, but sometimes you need to make updates to places that the customers don’t necessarily see. By making necessary upgrades to your back-of-house equipment, you can make a positive impact on the customer and your bottom line. However, back-of-house equipment can be a major financial burden if you don’t have the funds set aside. With a merchant cash advance, you can have access to the capital you need to make these important purchases.
Upgrading your back-of-house equipment can increase your efficiency while decreasing your long-term costs. There are now many options for high efficiency machines: everything from dishwashers and refrigerators, to ovens and water heaters. Upgrading your storage racks and shelving also helps you better manage your inventory and increase your kitchen’s efficiency.
You can even expand your offerings to your customers by making updates in the back of house. Perhaps your pizzas would benefit from new wood-fired ovens, or you want to add more craft beers in your tap rotation. Without the proper equipment or up-to-date pieces, these ideas could remain pipe dreams.
It’s also important to regularly evaluate the condition of your equipment. Proper maintenance will help your equipment last longer, but there are some red flags that indicate it’s time to replace these items:
- Ventilation hoods with damaged filters, rust, corrosion or dents, which could decrease the quality of circulation
- Refrigerators and walk-ins with food spoiling, leaks, or variations in temperature calibration
- Deep fryers that are slow to increase the temperature of the oil and cannot keep up the consistent temperature output needed for your operations
- Gas ranges with holes in the burners, issues in temperature fluctuations, or a pilot light that won’t stay lit
If these warning signs go unchecked and the equipment is not updated, it could result in food not being delivered at the highest quality.
Another area of opportunity for using merchant cash advance in the back of house is purchasing small wares. It’s important to keep a monthly inventory report of your small wares and have a process in place for purchasing new inventory. The costs of these items can really add up, though, especially if you need to replace several items at once. Using merchant cash advance for small wares purchases can alleviate the stress on your cash flow for these necessary pieces in your back of house.
New equipment and small wares are essential purchases for your back of house operations and can also help improve food quality and customer satisfaction. It can also reduce overhead costs and create better, more efficient food processes with labor-saving options. All of this results in profitability for your restaurant and increased sustainability.
But that’s not all you can do with a merchant cash advance. Check out part three of our series about how a cash infusion can help you make technology updates.
