Bakery To Eatery
Term Loan Bakery To Eatery
Author: Stephanie Clarke
Date posted: 06.08.23

Kristen has always had a passion for food. In culinary school, she fell in love with pastry and focused her attention there. For Kristen there is nothing more enjoyable than flaky dough, fruit fillings, delectable chocolate, and all the delightful flavors and feelings stirred up by baked goods. Her passion for baking led her to start a small, take-out only operation which included custom orders. The venture has been successful, but she wants more. Enter her friend, Dave, coffee connoisseur and barista extraordinaire, owner of a coffee truck. The pair has decided to team up and turn Kristen’s bakery space into a small, charming eatery serving up her baked goods and his beloved coffee.

Given the prime location of Kristen’s existing take-out bakery, they have not only secured the adjoining location but are also actively preparing the dining space both inside and outside. To efficiently get up and running, they’ll need to strategically expand the kitchen and thoughtfully add the coffee bar, while also acquiring tables, chairs, display cases for the baked goods, and more. Moreover, as part of their plans, they intend to offer bottled beverages; hence, they’ll also require refrigerator cases for those.

Bakery To Eatery

Kristen and Dave’s existing following, combined with word-of-mouth and social media, will attract both current and new customers. The new addition has been painted, refurbished, and prepared for dining, as has the expanded kitchen area. Kristen and Dave have taken on the various tasks. They are researching the new equipment needs, as well as the furnishings and other supplies. They’ve reviewed staffing costs and believe their customer base will cover them, along with other operating expenses.

After pricing all the needed equipment, furnishing, and supplies, Kristen and Dave believed they had an accurate estimate of $225,000. Next, they began researching lenders with reasonable rates and timelines for term loans. Since each had excellent credit and financials, they hoped to get a shorter term loan for a lower interest rate. With their plans and estimates for future income in hand, they believed they would be able to secure the needed equipment, furniture, and supplies and pay off the loan in five years or less.

Having found a lender willing to provide a five-year term for the $225,000 at a favorable rate, they took the necessary steps to successfully secure the loan. With the loan in place, Kristen and Dave took immediate action. They promptly collaborated with installers, working together to swiftly prepare their new eatery for operation.

 

Within a year, business had doubled, and the eatery was experiencing rapid growth. Moreover, their reputation for quality baked goods and exceptional coffee significantly contributed to spreading the word among their existing customers. Furthermore, these loyal patrons consistently shared the delicious treats with their friends and colleagues. Additionally, their active presence on social media unexpectedly drew in a larger customer base than anticipated. As the four-year milestone approached, Kristen and Dave were not only on the verge of settling their term loan but also meticulously outlining their next significant endeavor.

 

Bakery To Eatery
About The Author | Stephanie Clarke

Stephanie has a bachelor's degree in psychology and has been a professional writer for over 15 years. Her client list includes New York Times bestselling authors, publishing houses, prominent public figures and successful business owners. She resides with her family in Florida.

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