How a Chicago Restaurant Expanded with Equipment Financing
The Client
Williams Family Restaurant has been a Chicago neighborhood staple since 1998. What started as a small family diner has grown into a beloved local institution known for classic American comfort food.
Owner Jennifer Williams took over the restaurant from her parents in 2019 and has been focused on modernizing operations while maintaining the family recipes and atmosphere that made the restaurant successful.
The Challenge
By late 2024, Williams Family Restaurant was facing a critical crossroads:
Aging Equipment
- ●The main commercial oven was 15 years old and increasingly unreliable
- ●Refrigeration units were inefficient, driving up energy costs
- ●The outdated POS system couldn't handle modern payment methods or online ordering
- ●Kitchen workflow was inefficient, leading to longer wait times
Operational Impact
- ●Service slowdowns during peak hours
- ●Higher maintenance costs (3 repair calls in 2 months)
- ●Limited menu options due to equipment constraints
- ●Staff frustration with outdated technology
The Budget Reality
Jennifer estimated she needed approximately $85,000 for:
- ●New commercial combination oven: $28,000
- ●Walk-in cooler replacement: $18,000
- ●Updated refrigeration line: $15,000
- ●Modern POS system: $12,000
- ●Additional small equipment: $12,000
With strong monthly revenue but limited cash reserves after pandemic recovery, paying cash wasn't an option. And she couldn't afford to close for renovations.
Finding the Solution
Jennifer contacted Banked.fyi after a fellow restaurant owner recommended them. After reviewing her situation, we identified equipment financing as the ideal solution.
Why Equipment Financing?
- ●Equipment as Collateral: The new equipment itself secured the loan, meaning no additional collateral required
- ●Tax Benefits: Section 179 deduction would significantly offset costs
- ●Cash Flow Preservation: Keep working capital for operations
- ●Quick Approval: Jennifer couldn't wait weeks—she needed the oven immediately
The Process
Day 1: Initial consultation and document gathering
- ●Business bank statements
- ●Equipment quotes from vendors
- ●Basic business information
Day 2: Application submitted
- ●Multiple lender options presented
- ●Competitive quotes compared
Day 4: Approval received
- ●$85,000 approved
- ●5-year term at 9.8% APR
- ●Monthly payment: $1,798
- ●No down payment required
Day 5: Funding completed, equipment ordered
The Results
Immediate Impact
Kitchen Efficiency:
- ●Service speed increased 35%
- ●Peak hour capacity up 40%
- ●Energy costs down 22%
Revenue Growth:
- ●Monthly revenue up $18,000 within 3 months
- ●Table turnover improved
- ●Online ordering enabled (new revenue stream)
Staff Satisfaction:
- ●Modern equipment reduced frustration
- ●Faster service = better tips
- ●Pride in updated facility
By the Numbers
| Metric | Before | After | Change |
|---|---|---|---|
| Avg ticket time | 28 min | 18 min | -36% |
| Peak covers | 120 | 168 | +40% |
| Monthly revenue | $82K | $100K | +22% |
| Energy costs | $4,200 | $3,300 | -21% |
ROI Analysis
- ●Equipment cost: $85,000
- ●Monthly payment: $1,798
- ●Revenue increase: ~$18,000/month
- ●Net monthly benefit: $16,200+
- ●Payback period: Under 6 months
Key Takeaways
- ●Don't wait for equipment to fail completely - Proactive upgrades prevent emergency situations
- ●Equipment financing preserves cash - Better for restaurants with variable cash flow
- ●Tax benefits matter - Section 179 made this even more affordable
- ●Speed counts - Getting funded quickly meant minimal disruption
- ●The right partner makes a difference - Guidance through the process was invaluable
What's Next
With the equipment upgrade complete, Jennifer is now planning:
- ●Outdoor seating expansion (2025)
- ●Potential second location evaluation
- ●Ghost kitchen pilot for delivery-only brands