Securing restaurant funding can be a complex process. There are financial hoops to jump through and a lot of jargon to wrap your head around. 🥴
Even though investments are a lot about numbers, it’s also about sharing a compelling vision. If you can share your story in the right way, you can make an emotional connection with potential investors — and that’s a pretty good way to get your foot in the door.
To sum up, there’s a lot to think about.
If you’re new to the process, don’t worry. In this guide, we take you through the essential steps of creating a pitch deck for restaurants. We’ll show you how to wow investors and communicate your business potential to boost your chances of funding.
Here’s what we cover:
2. Explain your business model
3. Demonstrate market analysis
4. Define your marketing and sales strategy
5. Show the team behind the dream
6. Share your financial projections
8. Make your pitch deck stand out
1. Craft your story
Your restaurant’s story is pivotal to your pitch deck. It’s about more than just food; it’s about the experience, the passion, and the vision. Here’s how to explain what sets your restaurant apart and why it matters to hook potential investors.
Explain the vision behind your concept
Unpack your restaurant’s concept, the passion driving it, and the unique experience you aim to offer. This is your opening statement, the “why” behind your “what.”
Consider how Shake Shack began as a hot dog cart in Madison Square Park and evolved into a global phenomenon. Its story wasn’t just about fast casual dining; it was about community, quality ingredients, and an innovative approach to fast food.
Your story should similarly articulate the unique vision behind your restaurant.
Outline your unique value proposition (UVP)
Here, drill down into what sets your restaurant apart. Is it your sourcing ethics, a gap in the local market you’re filling, or perhaps a new dining concept?
Look at Eataly as an example. The restaurant’s success comes from its unique blend of retail, dining, and educational experiences around Italian cuisine.
Its UVP is clear — to offer high-quality Italian food, educate consumers about its origins, and create an immersive cultural experience. Pinpoint what sets your restaurant apart, using real examples to show potential investors.
2. Explain your business model
When attracting investors, you need a solid business model. After all, they’re investing a lot of money into the business, so they want it to be as secure as possible.
This means detailing your revenue streams and target market:
Break down your revenue streams and profitability
Outline the different ways your restaurant generates income. From traditional dining to innovative revenue streams like online cooking classes, be clear and precise. They need to know exactly how you make money now, and how you plan to make more in the future.
If you need some inspiration on how to diversify your income, take a look at Rocksalt.
The cafe and restaurant offers catering services as an additional stream of income, using their trusty food truck to cook and serve food across different events and locations. They’re also expanding into the retail market to increase revenue without upping costs too much.
“The plan is to keep growing. The retail and catering element of the business is huge for us, allowing us to increase revenue without massively increasing costs.” – Stephen Burns, Group Operations Manager at Rocksalt.
Find out more about Rocksalt’s success.
Clarify your target market
Define who your restaurant is catering to, providing a deep dive into your audience:
- Demographics
- Preferences
- Dining habits
Outlining all this information shows you have a solid understanding of your market and who you’re trying to target, which reassures potential investors. You know who you’re trying to target, what they like, and how to reach them.
Chipotle is a good example of a restaurant that successfully targets a broad demographic. They focus on fresh, sustainable, and customisable meals, appealing to an audience that wants fast but healthy meals.
They understood their market’s desire for quick and nutritious options. Define your target market with similar precision, highlighting how your restaurant meets a specific need or desire.
3. Demonstrate your market analysis
A thorough market analysis is critical in any pitch deck. It gives you a clear picture of where you stand in the marketplace and shows potential investors that you’re aware of the bigger picture.
Noma is a pretty good example of a restaurant that knows its market. The Michelin-star restaurant has been repeatedly named the world’s best restaurant by emphasising foraged ingredients and Nordic cuisine. Their mastery of a niche market demonstrates the power of understanding and innovating within your competitive landscape.
Here’s what you need to do to showcase your market analysis:
Share your competitive landscape
Offer an analysis of your competitors, highlighting their strengths and weaknesses. Focus on the areas where your restaurant can outperform competitors, highlighting opportunities in the market to solidify why investing in your restaurant is a good idea.
Pinpoint market trends and opportunities
Identify trends in the food and beverage industry and clarify how your restaurant can capitalise on this trend.
Consider the growing interest in plant-based alternatives.
The rise of plant-based eating isn’t just a trend; it’s a shift in consumer behaviour. In the UK, meat consumption declined by an estimated 17% between 2008 and 2019, showing that people are moderating their intake of animal protein.
Not to mention, meat-free main dishes and starters are cropping up more restaurant menus.
Clean Kitchen’s success story shows how embracing this trend head-on can create a lucrative niche. By making plant-based food not only accessible but also appealing to the broader public, they’ve tapped into a growing demand.
4. Define your marketing and sales strategy
Outline how you plan to attract and retain customers with a solid sales and marketing strategy. This should be innovative, targeted, and demonstrate clear projections for future sales and revenue.
Let’s look at this in more detail:
Show sales projections and strategy
If you pluck figures out of thin air, investors will know. And more importantly, they’ll probably doubt your entire pitch. Provide realistic sales forecasts based on market research, your marketing strategies, and historical data.
Hot tip 🔥 Use a restaurant operating system like Nory to track and analyse your sales and performance. Find trends, make accurate predictions, and show potential investors why your restaurant is worth backing.
Clarify your brand-building and marketing tactics
Discuss your brand identity and the digital marketing strategies you will use to build awareness and attract customers. This shows potential investors that you know what your brand represents, who you want to target, and how to reach them.
Honest Burgers is a good example of a restaurant that’s nailed its branding and marketing. The logo and brand colours are simple yet bold, making them instantly recognisable to potential customers.
For marketing, the company puts a strong emphasis on honesty (in case you hadn’t guessed from the name). They sell handmade British produce, showing customers where their ingredients are sourced from. Here’s a snippet from their website:
Not only does this build trust with customers, but it also prioritises community and collaboration with local suppliers.
5. Show the team behind the dream
The strength of your team can be a major selling point for an investor. If they can see you have a solid group of people with a proven track record of success, they’re more likely to invest.
Introduce your team, focusing on the experience, skills, and passion each member brings to the restaurant. Highlight the expertise they bring to the table, including any advisory board or mentors that will support your journey.
Add some real examples of how the team has succeeded in the past and how you see the team growing and developing as the business expands. For example, if you’ve successfully launched and grown a restaurant from scratch, talk about how your team made this happen. From front-line staff to top-level managers, everyone plays a pivotal role.
And don’t forget to mention any advisors, mentors, or industry professionals who support your venture. This adds credibility to your business, which investors appreciate because it legitimises your business.
6. Share your financial projections
The financial section is arguably the most important aspect from the perspective of your investor. Why? Because it outlines your expected financial performance, which is ultimately what your investor is looking for.
This includes:
- A revenue forecast and projections. Include detailed financial projections for at least the next three to five years, covering revenue, expenses, cash flow, and profitability.
- A cost analysis. Also known as a cost-benefit analysis, this involves identifying all the costs in your business and comparing them to the expected benefits or revenues.
- A statement of your funding requirements. Clearly state how much funding you’re seeking and how these funds will be used to achieve your business objectives.
There are lots of online templates and resources to help you create financial projections and forecasts, like Smartsheet and Hubspot.
You can also use Nory to analyse previous sales and performance to make accurate predictions about future growth. Our AI-powered system learns how your restaurant operates to forecast:
- Sales and revenue
- Gross profit margins
- Cost of goods sold (COGs),
- Labour costs and productivity
- Food waste
- Inventory and supply chain costs
7. Ask for what you need
Be clear about what you’re asking from investors and what they’ll get in return. That way, there’s no confusion and everyone’s on the same page.
Present your ideal financial arrangement
Detail your proposed financial arrangement, reassuring potential investors of their return on investment. Outline the structure of the deal, whether it’s equity, a loan, or another arrangement.
If you want to secure an equity offer, for example, you might include the following in your pitch deck:
- In exchange for the restaurant investment, the investor will receive a [xxx]% equity stake in [restaurant name]. Investors will receive [xxx]% of net profits quarterly until the initial investment is recouped. After the initial investment is recouped, profit sharing will adjust to [xxx]% of net profits.
Introduce your exit strategy
Outline potential exit strategies for investors, assuring them of your commitment to generating a return on their investment. Here are some of the common exit strategies for restaurants:
- Buying out the investor
- Selling the restaurant
- Franchising the restaurant (take a look at Griolladh as an example of a restaurant that’s franchised successfully)
- Merging with or acquiring another business
- Passing the business to a friend or family member
- Liquidation
Let’s say that you’re planning to either buy out your investor or sell the restaurant in five years. Here’s how this might look in an actual restaurant pitch deck:
Exit strategy
- Buyout: The business owner retains the option to buy back the investor’s equity stake after [xxx] years at a valuation of [xxx]% of the initial investment or fair market value, whichever is higher.
- IPO or sale: In the event of an Initial Public Offering (IPO) or sale of the restaurant, the investor will have the option to convert their equity stake into shares of the new entity or cash out at the market rate.
The choice of strategy depends on your goals, the restaurant’s financial health, and market conditions.
8. Make your pitch deck stand out
The quality and style of your pitch deck is important. It shows professionalism and solidifies your restaurant brand, which can help to build trust with investors, Ensure that it’s visually appealing, well-structured, and that it reflects your brand’s personality.
Here are some best practices to consider:
Design and presentation tips
Craft a well-designed pitch deck that:
- Isn’t overcrowded with text and images
- Highlights the key information (but doesn’t overload investors)
- Is aligned with your brand, using brand colours, fonts, and images
When presenting, it’s a good idea to keep the information on the pitch deck minimal, only including the key information that investors need to see. If you overcrowd the deck with too much information, it can be pretty overwhelming. Instead, you can speak around the figures and projections to provide more insight.
An overcrowded pitch deck can hinder your delivery, too. If you’re reading word-for-word from the presentation, it’s not as engaging. But if you’re speaking about the main points covered in the pitch deck, it’s much more natural and appealing to people listening.
Think about structure
The structure of your pitch deck also influences the impact of delivery.
If it’s too convoluted or constantly hops around to unrelated ideas, it’s harder for investors to see why they should invest in your business. It needs to have a well-crafted flow, so you move through all the key points in some kind of order.
Look at how successful franchises like Freshii structure investment proposals. The information is clear and easy to digest, making it easy for potential investors to see the information they need as quickly as possible.
It’s also on brand, with the logo, font, and images representing their brand identity.
Tell the story of your restaurant
A compelling narrative throughout your pitch deck can persuade investors to work with your business. How? By building an emotional connection.
Of course, investors are primarily driven by financial performance — but emotional connections can undoubtedly influence their choices.
Take a look at Barrio’s restaurant pitch deck as an example. The presentation outlines:
- The history of the restaurant
- The objective of the business (which includes combining their love for food with “art and good vibes”)
- The importance of community (hosting local school events, art showcases, and a ”chefs to end hunger” community programme)
- The background of both owners, plus a photo of each
All of this information paints a picture about the type of restaurant Barrio is. This can help build an emotional connection with potential investors and hopefully secure an investment (provided that your restaurant also has all the other elements of a successful restaurant pitch).
Secure your restaurant’s future with Nory
There’s a lot of success that comes with securing a restaurant investment. Take a look at Hawksmoor as an example, who are reportedly exploring funding options that could bring the value of the restaurant chain to around £100m.
But creating a successful pitch deck for restaurant funding is more than convincing investors to part with their money. It’s about showing them why they should believe in your restaurant as much as you do. You share accurate financial projections, your ideal investment structure, and highlight the return on investment — but you also share your story.
Hopefully, this guide has given you a deeper insight into how to create a well-crafted pitch deck that hits all the key criteria!
How can Nory help?
If you’re looking for a quick and hassle-free way to secure funding for your restaurant, check out Nory Capital.
Nory Capital is the fastest financing solution for restaurant businesses, with an 85% acceptance rate. 🤯
Powered by YouLend, you can:
- Access up to £2m in less than 24 hours
- Choose from flexible repayment plans
- Manage your funding applications from a central location
- Secure funding with interest rates as low as 5%
Get in touch with the team to start financing your business success!
FAQs about how to get funding for a restaurant
How can I make my financial projections more appealing to investors?
Ensure your projections are realistic, backed by solid data, and highlight growth potential and scalability.
How do I handle objections or tough questions from potential investors?
Identify potential weaknesses in your plan and have clear, concise responses ready. If you don’t know how to answer a question, reassure them that you’ll look into it and get back to them with a full answer ASAP. Don’t make something up on the spot that can damage your credibility.
What is the most common mistake in restaurant pitch decks?
One of the most common mistakes is overlooking the importance of a clear, compelling narrative that connects all elements of the pitch. It’s easy to get caught up in sharing the finances, but the story of your restaurant is really important to success.
How important is the design of the pitch deck?
A well-designed pitch deck can significantly impact investor engagement, making your presentation memorable. It also represents your branding and showcases your professionalism — both of which build trust with
Can I use my pitch deck for crowdfunding?
Yes, but it may need adjustments to align with the expectations and interests of a broader, non-professional investor audience.
