Expanding Your Business? Seven Tips to Improve Cash Flow to Fund a New Location

3 Min Read By John Moody

Restaurant365’s State of the Industry Customer Survey shows that 60 percent of surveyed customers plan to expand their businesses in 2023 despite expected increased labor and food costs.

Whether a restaurant wants to expand on its first location’s success or try a new type of venue entirely, opening a second location is a big decision. While most restaurant operators will seek outside funding to get the second location running, it still takes time for a unit to become profitable once the doors open.

Different restaurant models achieve a break-even or profitability point at varying times. Some might break-even within the first three months while others claim it could take a year or even more. It is important to consider if the first location has the cash flow to help financially carry the second location for a period of time if needed. 

Below are seven tips to improve the cash flow and make the most out of a current location to ensure a steady stream of revenue to serve as a…