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How did you fund your Food Business?

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  • 24-02-2019 4:50am
    #1
    markymark21
    Registered Users Posts: 595 ✭✭✭


    Hi All

    The question is in the title really. Looking to hear from people who have funded a cafe/food truck/bar etc. Coming back from Oz next December and we are looking to take what we have learnt over here for the past eight years and open our own venue on the east coast.

    I've seen there are various grant schemes one could potentially avail of from Local Enterprise office or even Peer to Peer lending and am wondering has anyone availed of these for their food business? My worry is that hospitality ain't exactly cutting edge or sexy (not to mention the high failure rate of startups) so am worried we perhaps won't get a look in.

    Regarding bank loans, how have people faired with Bank of Ireland/AIB etc in getting loans for food businesses? My partner and I have extensive experience in hospitality and I'm confident we have a concept that people would really be into, however, I'm aware that banks are far more diligent when it comes to handing out loans VS 15 years ago and will knock us back as we've been abroad for a number of years

    Cheers!


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    #2
    jimmii
    Registered Users Posts: 14,810 ✭✭✭✭jimmii


    I'd imagine it's going to be very very hard. It's going to depend on how much you have and the type of security you can offer and obviously how much you want from them. It will probably need to be an amount that they feel is going to be easily repayable if it fails and you have to find a job so if you have a solid degree that'll probably be a plus. The normal route is friends and family funding to create a proof of concept then look for funding once you can prove the demand. Food truck is probably the most likely route as getting an amount to open an outlet would probably mean a relatively small unit in a fairly average location. Getting a lease might even tough landlord don't really like leasing to first timers!


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    #3
    duploelabs
    Registered Users Posts: 11,389 ✭✭✭✭duploelabs


    Given that food business' have an attrition rate of 80% in the first year, traditional banks tend to give them a very wide berth, microfinancing with the Local Enterprise offices and peer to peer do much better. If you're looking for a food truck, steer clear of a certain company with a canine theme to their name as they've ripped off quite a few people


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