A restaurant group with three busy dining rooms had signed a lease on a fourth. The build-out could not wait for the slow season to end.
The situation
Strong summers and quiet winters made the group's cash flow look uneven to conventional lenders, despite five years of growth.
The landlord's improvement allowance covered less than half of the build-out, and the opening date was fixed by the lease.
Our approach
We read each location separately and showed that the seasonal pattern was consistent, not erratic: the same shape, year after year, with every year larger than the last.
The build-out was funded with a five-year term loan. Opening inventory, hiring and pre-opening costs came from a revenue-based facility whose payments rise in summer and ease in winter.
- Five-year term loan for construction and equipment
- Revenue-based facility for opening costs
- Repayment aligned to the group's seasonal receipts
The outcome
The fourth location opened on schedule and was running at its first-year sales target within seven months.
“For the first time, the repayment schedule matched our calendar instead of fighting it.”
Managing partner, restaurant group