Managing Seasonal Cash Flow for Restaurants

Most restaurants experience seasonal variations. Here's how to manage them:

Understanding Your Pattern: Map your cash flow:

• ●Peak months (holidays, summer, events)
• ●Slow months (January, weather-dependent)
• ●Transition periods

Funding Strategies by Season:

Before Peak Season:

• ●Stock up on inventory
• ●Hire/train seasonal staff
• ●Marketing push
• ●Equipment maintenance

Funding option: Line of credit or MCA timed to peak

During Peak Season:

• ●Build cash reserves
• ●Pay down debt
• ●Avoid taking new funding
• ●Save 15-20% of revenue for slow season

During Slow Season:

• ●Draw from reserves first
• ●Use line of credit for gaps
• ●MCA payments naturally lower
• ●Reduce variable costs

Best Products for Seasonal Restaurants:

Merchant Cash Advance: Why: Payments automatically decrease when sales drop

Business Line of Credit: Why: Draw during slow months, repay during peak

Revenue-Based Financing: Why: Payments flex with monthly revenue

Planning Ahead:

1. ●Apply for credit during peak season (best approval odds)
2. ●Have line of credit ready before slow season
3. ●Build 3-6 months operating reserve
4. ●Know your monthly minimum expenses

Industry-Specific Seasonal Patterns:

• ●Beach restaurants: Summer peak, winter slow
• ●Ski resorts: Winter peak, summer slow
• ●Outdoor dining: Weather-dependent
• ●Urban core: Business day patterns