Investment Structure

We offer consulting for individuals looking for restaurant investment opportunities.

With more and more Americans eating out for meals, restaurant investment opportunities are plentiful. Everyone needs to eat, and many of us are too busy with the responsibilities of everyday life, work and school to grocery shop and cook meals for our families every night. Investing in a restaurant may seem like a romantic idea, but this type of investment should be considered from a practical point of view to ensure a sound choice is made.

Passive vs Active Investing

An active investor in your restaurant would take an active role in decisions and operations, having input in menu selections, restaurant design, and staffing decisions. A passive investor would simply invest capital in your operation and may or may not offer suggestions for changes that you would ultimately have authority over.

Consider Your Business Plan and Projections

The National Restaurant Association estimates that on average, about 60,000 restaurants open each year – and 50,000 close. While not all those closures represent a failure, the number is representative of the constant movement within the industry. If you’ve decided to invest in a new restaurant, there will be no history to analyze performance or base future projections upon. Before investing, you should hire The Gilkey Restaurant Consulting Group to assist in developing a solid financial forecast to see if the business plan is structured well and makes sense with local projections.

Understand Investment Yield and ROI

Investment yield is defined as the earnings generated and realized on a restaurant investment over a particular period of time, which is important to consider when looking at restaurant investment opportunities. You will also want to consider the potential return on investment (ROI) before committing to invest. Keep in mind that the industry standard restaurant ROI is about three to five years.

If you’re looking into restaurant investment opportunities, The Gilkey Restaurant Consultant Group is a solid resource. With over 30 years in the food and beverage industry consulting with restaurant and hotel food and beverage operations of all sizes, we can help you identify a good investment opportunity and identify where improvements can be made that will increase your return on investment. Contact us to learn more and get started today!

Restaurant Investment: Frequently Asked Questions

Answers to the questions investors ask most before putting capital into a restaurant, drawn from over 30 years of food and beverage industry experience.

Is investing in a restaurant a good idea?

Investing in a restaurant can be rewarding, but it should be approached practically rather than romantically. The industry sees roughly 60,000 openings and 50,000 closures each year, so the opportunity is real and the risk is equally real. A sound investment depends on a strong concept, capable operators, a realistic business plan, and a market that supports the numbers. Before committing capital, it helps to validate the opportunity with an objective feasibility study so you understand exactly what you are getting into and where the returns will come from.

What is the difference between an active and a passive restaurant investor?

An active investor takes a hands-on role in the business, weighing in on decisions like menu selection, staffing, and restaurant design, and sharing in day to day direction. A passive investor contributes capital but generally leaves operational authority to the owner, offering input only when invited. Active investing offers more control and potential upside but demands time and expertise, while passive investing is simpler but relies heavily on trusting the operator. Choosing the right structure depends on how involved you want to be and how much risk you are comfortable carrying.

What ROI can you expect from a restaurant investment?

Returns vary widely with concept, location, and execution, but the industry standard restaurant ROI is generally about three to five years. Investment yield refers to the earnings a restaurant generates over a given period, and it deserves close attention before you commit. Strong returns come from disciplined operations and accurate projections, not optimism. Pairing your evaluation with professional financial assessments helps you test assumptions, model realistic yield, and identify where improvements could raise your return on investment over the life of the deal.

How much money do you need to invest in a restaurant?

There is no single figure, since the amount depends on concept, size, location, and whether you are funding a startup or buying into an existing operation. Costs range from modest stakes in a small independent concept to substantial capital for a full service or franchise build out. What matters most is that the number is grounded in a realistic business plan and honest projections rather than guesswork. Knowing your total capital needs, including a reserve for the early months, protects you from the underfunding that sinks many otherwise promising restaurants.

What should you evaluate before investing in a restaurant?

Before investing, dig into the concept, the operators, the local market, and the numbers behind the projections. For a new restaurant there is no track record to analyze, so the business plan and financial forecast carry extra weight. For an existing operation, review historical performance and look for places where stronger operations consulting could lift margins. Ask hard questions about cash flow, break even timing, and exit options. An objective, experienced third party review helps you separate a genuinely sound opportunity from an appealing story.