Restaurant Sales Following Earlier Predictions, and the Results are Promising

Steve O'ConnorCapital Advance, Marketing, Restaurant, Small Business TrendsLeave a Comment

Restaurant sales are on the rise, and it’s time for your restaurant to embrace this trend immediately. The economy cannot do this on its own, though, and there are things you, as a restaurant owner, can do to continually boost sales. However, new business models require funding, and a capital advance could be the solution you need.

With the job market steadily improving, gas prices falling, and the Dow Jones Industrial Average topping 18,000 in February, consumers have more buying power than they have had for a decade. An estimated 257,000 new jobs were added to the economy in January alone, with the unemployment rate at 5.7%. The National Restaurant Association predicted in late January that U.S. restaurants’ 2015 sales will grow to $709.2 billion, and January and February have proven that this prediction is completely possible.

In its most recent February report, The National Restaurant Association noted, “Meanwhile, gas prices plunged $1.66 a gallon between the end of June and the end of January… The result was an additional $3.2 billion spent in restaurants in January as compared to June (on a seasonally-adjusted basis), an increase of nearly 7 percent.”

The American consumer still feels vulnerable, however, and restaurant owners need to continue to utilize best practices to keep returning customers and bring in new ones. This fact is even more prevalent considering new economic pressures restaurants and small business will face in 2015: minimum wage increase and higher health care costs, to name two. There is some relief on the horizon with predictions stating prices for certain commodities will decrease this year, including dairy and pork products – relief that cannot come soon enough in light of ingredient shortages in 2014 of products such as butter, pork, beef, veal, and eggs.

Don’t Let the Economy Do All of the Work for You

While the economic boost of late 2014 and early 2015 has done a lot to help restaurants increase their sales, you, as the restaurant owner, cannot rely solely on the market to do your job for you. Finding new and inventive ways to bring in customers always poses a challenge to restaurateurs. If you feel as though your restaurant is still suffering when it comes to sales, it may be time to invest in alternative approaches to fill tables by issuing coupons, starting a free meal for kids night, or even hosting live music. But how do you acquire the necessary capital to fund these endeavors? Try considering a capital advance as a form of investing to put cash in your restaurant’s pocket that you can use in any manner you deem fit. Capital advances give restaurants and small businesses an influx of capital, with an easy to understand repayment process, so restaurant owners can continue to provide their customers with a great dining experience.

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