Improve Restaurant Cash Flow

Restaurants, especially new ones, often go through seasons of prosper and seasons of cash drought. Poor cash flow can come from a number of different factors in your restaurant. Labor costs, payroll, inventory, and processes are all important factors to evaluate in your business. The trick to improve restaurant cash flow is to first identify your problem areas so you can find solutions to fix them.

If you are using disparate systems for restaurant management, look into integrating your restaurant technology so it can share data. Review your processes and see if there are ways to streamline your business and make it run more efficiently.

Focus on your inventory first. A disorganized inventory can create a lot of waste from over-ordering. When inventory management systems are in place, you can better forecast your inventory needs and know when you need to order and how much. Use data from your POS to help you eliminate excess and have better control over what’s coming in and out of your restaurant.

When your schedules aren’t optimized and you don’t have the tools in place to accurately forecast labor needs, you run the risk of overstaffing. Optimizing your schedules and labor  costs can significantly decrease overhead expenses and improve restaurant cash flow. Take advantage of scheduling software that has the capabilities to assist with labor management and smarter scheduling.

Look into lending options specifically for your industry, like Heartland Capital. This allows you to secure financing in as little as 24 hours after your application is accepted, and lets you choose the best possible rate among over 75 different lenders. The application process is quick and simple, and you can complete it in as little as fifteen minutes on a smartphone or tablet.

If you’ve taken on credit card debt, it’s imperative to make sure you fully understand where you stand, including balances, fees, rates, and more. Usually, small business loans will offer much better rates than credit cards, so unless you will be able to pay off the balance before it accrues interest, avoid relying on credit cards for your financing.

If you want to invest in solutions that are made to help improve restaurant cash flow, but aren’t able to pay the full price for it up-front, consider different options like leasing the software, or using a payment plan. Many providers offer POS-as-a-service (PaaS) and software-as-a-service (SaaS) options which will allow you to take advantage of industry-leading software for a low monthly fee. This makes it easier to plan out your finances monthly and scale your business while staying within your budget.