Money rules the world and
this is especially true of businesses that operate in a highly
competitive market. The restaurant business is also not alien to the
fact that in order to keep competition at bay, it requires a huge
amount of investible funds to finance its restaurant marketing
strategies and avail a better position in the market. From adding
value to its food and service to innovating new ‘surprise and
delight’ elements that pull customers and trigger same store sales
and from building its market image to promoting its offerings amongst
dozens others in a cut-throat market, an emerging restaurant concept
does require a lot of money. Thankfully, winning ideas do not need to
take a backseat; there are several private equity firms and venture
capitalists interested in becoming stakeholders in winning concepts
that are profit-oriented. Importantly, many of these venture capital
or private equity firms also go a step further and offer their
knowledge of the changing restaurant trends and support emerging
restaurants by putting their networks and contacts to use for the
purpose of restaurant branding and promotion.
Whether it is a quick
service restaurant in need of growth capital or a high volume fine
dining restaurant that requires knowledge and support to better its
processes, improve its quality and guest satisfaction levels and cut
high capital expenditure, a private equity firm can come to aid for
all such scenarios. Even when debts surmount, personal funds begin to
deplete and competition arises, a venture capital firm can be a
savior for restaurant units to not just sail through tough financial
times but also eliminate competition. This solves two purposes:
- It provides a seamless supply of growth capital to restaurant owners to improve their restaurant branding and marketing strategies. Venture capital firms have the network and people to pull it all together.
- It means a good amount of profit for the venture capitalist too!
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