The Restaurant Finance and Development Conference (RFDC) 2024 offered no shortage of inspiration for emerging restaurant brands, and the session “Financing and Growing Your Emerging Brand: It Can Be Done!” was a standout. Moderated by Brad Cashman of Monroe Moxness Berg, the session featured a dynamic panel of industry veterans who shared real-world advice on securing financing and scaling successfully.
The panelists included:
- Andrew Pudalov, Rush Bowls
- Mike Torino, Amici Food Group
- Jennifer Schuler, Handel’s Ice Cream
- Sabin Lomac, Cousins Maine Lobster
Navigating the Financial Landscape
Financing is often one of the biggest hurdles for emerging restaurant brands. The panel offered valuable insights into the options available and the critical factors to consider when evaluating them.
1. Explore Diverse Financing Options
The panelists emphasized that there’s no one-size-fits-all solution when it comes to funding. Options include:
- Traditional Bank Loans: Ideal for brands with a solid credit history and predictable cash flow.
- Private Equity or Venture Capital: A fit for high-growth concepts with the potential to scale rapidly.
- Franchisee Partnerships: For franchise brands, partnering with well-capitalized franchisees can fuel expansion.
- Alternative Lenders: Options like revenue-based financing or fintech solutions can offer flexibility but may come with higher costs. Depending on the franchise you get, you may just need to buy a food truck!
Jennifer Schuler of Handel’s Ice Cream highlighted the importance of aligning financing choices with long-term goals. “Understand not just what you need today but where you want to go in the future,” she said.
2. Preparing for Financing Success
Securing funding goes beyond having a great concept. The panel stressed the importance of preparation and presentation:
- Develop a Strong Business Plan: Investors and lenders want to see a clear growth strategy backed by solid numbers.
- Know Your Metrics: Andrew Pudalov of Rush Bowls emphasized that understanding your financials—such as cost of goods sold, labor costs, and EBITDA—is essential.
- Showcase Your Brand’s Unique Value: Sabin Lomac of Cousins Maine Lobster shared how a compelling brand story and proven track record helped his team attract capital.
3. Build Relationships with Capital Sources
Networking and relationships were recurring themes. The panelists stressed the value of fostering connections with potential lenders, investors, and advisors.
“Don’t just approach lenders when you need money,” said Mike Torino of Amici Food Group. “Build those relationships early so they understand your vision and trust your leadership.”
4. Financing for Sustainable Growth
It’s not just about securing funding—it’s about using it wisely to drive sustainable growth. The panelists shared tips on deploying capital effectively:
- Invest in Core Infrastructure: Build the systems and teams that can support long-term scalability.
- Focus on High-Impact Areas: Prioritize spending on initiatives that directly drive revenue or enhance customer experience.
- Manage Debt Carefully: Avoid over-leveraging, which can hinder flexibility during economic downturns.
Key Takeaways for Emerging Brands
For attendees, this session was a masterclass in navigating the financing journey. Some of the most actionable advice included:
- Be Ready to Adapt: The financial landscape is constantly changing, so stay informed and flexible.
- Tell a Story: Numbers matter, but so does the passion and vision behind your brand.
- Seek Advice: Surround yourself with experienced advisors who can guide you through the process.
Your Brand’s Next Chapter
Financing is one of the most critical—and challenging—aspects of scaling an emerging brand. However, as the panelists demonstrated, it’s entirely achievable with the right preparation, strategy, and partnerships.
What strategies have you found effective in growing your restaurant brand? Let’s connect and share insights to help emerging brands thrive.
