Running a restaurant is one of the hardest businesses that you can have. Many fail in the first year for various reasons. There are four stages to successfully funding restaurant growth. First, you need to make sure that you have a concept and a model and can see where you want your restaurant to go. Early growth is when you are starting to expand. You want to do so slowly so that you can keep up and it doesn’t get away from you.
- In the start up stage many new restaurateurs look to angel investors, or family and friends for investments
- If the business has grown, an owner may choose to buy out an investor at this point
- After years of success the operator may consider either more growth or exiting the business
“At this stage of growth a restaurant operator is likely to have ambitions that need an injection of capital. That might be a refurbishment, a limited roll out, or they may be looking to take some money out of their business.”