A lot of restaurants are having cashflow problems as customers cut back on the number of times they dine out and how much they spend when they do.
Tips to help your restaurant
- Increase your sales with a limited budget by:
- promoting your restaurant on social media – e.g. Twitter, Facebook, YouTube
- encouraging clients to post positive reviews – e.g. on Google, TripAdvisor
- distributing promotional flyers around local shops and businesses
- offering promotions at your restaurant – e.g. early diner discounts or 2-for-1
- Get a business loan to help you through these tough times – but be careful that it won’t just make matters worse for you. Is putting more money into the business really a good option for you? (You are welcome to call us for free advice before you decide.)
- Would any refurbishments at your restaurant help improve your cashflow? If not, leave this for now – unless the work is essential.
- Reduce your overheads by:
- reducing the choices on your menu
- restructuring your loans / mortgages / rent
- checking you are on the best rates for electricity / gas supplies
- reducing staff numbers at the quiet times
If you have tried everything but your restaurant is still struggling, it may be that your restaurant has reached the point where it can no longer continue to trade.
We have helped numerous restaurants who have reached this stage – often through no fault of their own.
How we can help you
The first thing we would do is to discuss your situation to find out what has happened and what you would like to happen next. (This advice is free.)
In many cases, the business owners want to close down their restaurant and go and do something different. We can help:
- value the assets of the business (using independent, RICS-accredited valuers)
- formally liquidate the restaurant
- make staff redundant
- deal with the creditors (i.e. the people who are owed money – e.g. HMRC, the bank)
- ‘clear the decks’ for a fresh, new start
Some business owners are looking to start a new business, using the knowledge they have gained from their previous experiences.
We have a number of contacts who specialise in providing funds for business re-starts. Also, there may be assets from the restaurant that, while being of little or no value to anyone else, would be useful to you for your new business. (The independent, RICS-accredited valuers we use will always provide a fair price for any assets they value.)
See how we helped a restaurant which found itself with cashflow problems here.