Navigating the world of restaurant investment can be overwhelming, whether you’re launching your first concept or looking to expand your brand through franchising. Securing the right investment is essential, and having a clear and compelling pitch is key to attracting potential backers. Paperchase specializes in helping restaurant operators craft investor models that not only tell their story but also offer a blueprint for long-term success. With our expertise, we’ll guide you through the process of creating the perfect pitch, ensuring you have the tools needed to secure the funding you deserve.
Considering Investors
For all stages of investment—whether you are starting from the ground up or planning to franchise—having a strong pitch and concept is crucial. You cannot have a restaurant without a plan, and that’s where Paperchase comes in. We’ll help you create breathtaking investor models, such as a pitch deck, to secure the investment capital of your dreams.
Before beginning your pitching process, restaurant operators should thoroughly research what type of investor or investment firm best fits their goals.
Know your audience: What kind of investor do you want to appeal to? There are a range of different investors in the hospitality industry.
- Crowdfunding: The practice of funding a project or venture by raising money through many people, often shared via social media or virtual organizing.
- Angel Investor: An individual who provides capital to a business in exchange for convertible debt or ownership equity.
- Corporate Investors: Funding from a company or firm, sometimes on behalf of larger companies.
- Private Equity: A private company that exchanges investment for equity in a business.
- Growth Equity: A lower-risk investment that often obtains a smaller stake in equity in a business.
- Franchising: A business transaction where a company (in this case, a restaurant) licenses another business, the franchisee, to use its brand and operating methods.
- Personal Investment: Capital from a sole investor unattached to any company.
Sometimes, in addition to an investment from a firm, a restaurateur can secure funding via a government grant or local associations. These organizations can provide capital in the form of loans, grants, or general financial assistance and mentoring. Programs like the federal Restaurant Revitalization Fund (RRF) and the New York City Restaurant Revitalization Program (RRP) were created during the COVID-19 pandemic to provide non-taxable grants for eligible restaurants. Individual restaurants can qualify for up to $5 million, and groups can receive up to $10 million.
Building a Pitch
Know your story: Before going in front of investors in any capacity, you should be prepared to answer all questions they throw at you. Operators preparing for investment should be able to thoroughly describe all aspects of their business, including:
- Cuisine
- Location (if applicable, your rent and utility costs)
- Timeline for opening or expansion (if you are already open)
- Your clientele
- How you plan to stay on track with your plan.
It is critical to have a deep understanding of the market and what niche your restaurant fits into. Know your target customers and the area you want to open/expand to. Keep in mind things like foot traffic, parking, demographics, and other metrics that inform a restaurant’s revenue. Opening or expanding a restaurant is a risky move—what solution does your operation bring to an already competitive landscape? Go as in-depth with your strategy as you can. The more specific the details, the better picture your potential investor will have of your plan.
Get specific in terms of what you need to expand or open your business. Give your investors an idea of what equipment you will use, the design of your restaurant, how much staff you plan to hire, as well as the menu and marketing plans. Not only will this help your concept feel more tangible, but it will also give financiers a price tag for how much everything will cost.
Suppose you are already open, and your business is looking to secure funding. In that case, you will need to include more information in your pitch deck that explains why investors should put capital toward your restaurant. A restaurant pitch deck should include detailed financial reports that show a complete picture of the restaurant’s health. This should include updated P&L reports, cash flow statements, balance sheets, and records of payment between vendors.
How Paperchase Can Help
Paperchase can help you gain clarity on your business’s growth trajectory and optimize your cash flow with our expert CFOs and Financial Planning and Analysis (FP&A). Our comprehensive range of CFO services includes:
- Long-term financial models
- Weekly cash flow forecasts
- Benchmarking
- Investor/board presentations
- Data analysis
- Ad-hoc business analysis
- Valuation and underwriting
- Competitor analysis
When planning for investment, Paperchase’s CFO services leverage industry expertise, data-driven insights, strategic partnerships, and a long-term vision. These promises are backed by a reputation with a proven track record of over 30 years in the business. With us, you’ll get a customized approach to address your specific investment needs. Paperchase’s Fundraising Advisory works with operators to lend support throughout the whole process—from creating initial models to sourcing and negotiating with investors.
Conclusion
Securing investment for your restaurant isn’t just about having a great idea; it’s about presenting a well-researched, financially sound plan that instills confidence in potential investors. With Paperchase by your side, you gain access to industry-leading CFO services and fundraising advisory to optimize your financial strategies and help turn your vision into reality. From crafting detailed pitch decks to connecting with the right investors, we’re here to support you every step of the way, ensuring your restaurant’s growth and success. Let’s make your investment goals a reality
