Make sure, up front, that everything is in writing, and if you can, work with a lawyer or restaurant real estate adviser to request a tenant improvement allowance in the letter of intent. Many local restaurant associations have forums where restaurateurs can ask for advice about loans and funding from fellow restaurateurs, as well as links to local restaurant consultants who can help you navigate the restaurant funding space.
Pilotworks, for example, is a premier food business incubator, allowing enterprising entrepreneurs to rent commercial kitchens in six cities.“Pilotworks participants benefit from affordable commissary and co-working space, tailored mentorship programs and workshops, flexible working hours, and, most importantly, community of supportive culinary professionals looking to achieve the same goal: change the way we think about food.”Many other cities have similar programs, including: Finally, some existing restaurants have incubator programs as well.
Wink & Nod in Boston, Massachusetts, for example, has a rotating kitchen.
Your local state restaurant association may have resources to help you procure funding.
California Restaurant Association, for example, gives members 15 minutes of legal advice every month.
is the number one reason why people open restaurants.
Many restaurants don’t succeed or even get to opening day.
As I mentioned before, many investors will not invest in restaurant businesses. You could go through the process of finding an investor that shares your passions, with pitch meetings, site visits, and of course a solid business plan. An angel investor is a wealthy person who helps finance an idea or business plan. Many restaurants have started their second or third location through crowdfunding sites like Kickstarter, Food Start, Indigogo, Go Fund Me, and Angellist.
If you already have customers that know and love your brand, why not ask them to spend a few bucks to fund your next location?
Oisa Ramen in Boston, Massachusetts recently opened a location after three years of pop-ups at professional kitchens, homes, and parties.
Chef Moe Kuroki wanted to share her favorite childhood food, tonkotsu ramen, with the world, and now has her own location in downtown Boston.