The financial reality every new venue needs to plan for
This piece was originally shared on LinkedIn in response to recurring conversations with founders and leadership teams around this topic.
I’m publishing it here as part of an ongoing body of thinking around restaurant strategy, market entry, and operational decision-making.
Many openings make choices in the first six months that set themselves up for failure.
Across all the regions I’ve worked in, I've seen too often - particularly in expansions - where operators underestimate or misunderstand the market.
And once panic sets in after the first few slower weeks, reactive decisions are made that later damage the brand’s strength.
You need at least nine months of cash flow ready before opening - something James Poole mentioned recently.
Not as a "safety net", but, as reality. Every venue experiences a lull between launch excitement and consistent trade.
Adequate financial planning means you can hold your standards through the quiet weeks. Without it, corners are cut on service, ingredients, or training - exactly when guests are forming their opinions.
The concepts usually aren't the problem. Running out of cash before you can build momentum is.
Since first sharing this, I’ve seen the same issue surface repeatedly — particularly with businesses entering new markets or scaling too quickly. The underlying challenge is rarely strategy itself, but how early decisions constrain execution later.