5 ways to use your working capital

There was a time when food lovers had few restaurant options to eat their favorite food, but restaurant business owners bridged that gap quite smartly and wisely. Now, food lovers have diverse options to gorge on favorite food items and try out new and unique ones.

This, however, is one side of the story. On the other side, for entrepreneurs beating the competition and staying ahead, is becoming extremely tough.

Nonetheless, smart businessmen like you dreamt of owning and running a restaurant and you succeeded. Owning and managing your own restaurant is a great service extended toward food lovers and you earn fame and profits in an industry you truly love.

While owning and managing a restaurant business is your passion, so to turn your passion into a success story you need to utilize your restaurant’s working capital sensibly. Note that regular inflow of cash indicates good sales, but if the cash-on-hand isn’t put to good use, you risk closing down your business.

Most businesses seek ably funded and uniformly replenished working capital, but not utilizing it for business development is a sheer waste. Fret not! Here are 5 ways to use your working capital. They will help you take your restaurant business to the next level.

Restaurant Expansion

Space is pricey, but investing in space can earn you more. Allocate some working capital in expanding restaurant area like – family rooms, parking, kids play area. Spaciousness will increase footfall and this investment will help your business grow.


Makeover is a good alternative if you do not wish to go for space expansion. Periodic makeovers will keep your restaurant fresh and modern. The cost of a makeover is normally lesser than space expansion; however, it would depend on the existing layout of your restaurant.


Kitchen, Stores, Billing counter, Floor and other areas need relevant equipment for smooth operations. A POS System for complete automation, for example. If you haven’t upgraded, it’s the right time to buy the latest or upgrade the existing equipment.


Want to beat the competition? You got to plan, strategize and keep some funds aside for advertising and marketing activities. Don’t spend only on promoting the restaurant, utilize some money for billboards mailers or SMS campaigns about discount offers, new recipes, BOGO offers, etc.

Licensing & Taxes

It is wise to designate a major chunk of available working capital for licensing and taxes at the beginning of a financial year. While both are important, being prepared from them will give you a free hand to spend money on your business.

To conclude, there are other elements like staff hiring & training can be tended through proper utilization of working capital, but as a business owner, you will need to control cash-flow and anticipate expenses to maintain profits without compromising customer service.

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