High-End Restaurant Group – National Expansion Liquidity Strategy
Size
$2.0M
Sector
Hospitality
Capital Structure
Refinance + Equipment Lease
Role & Contribution
Refinance strategy, lease facility design, cash flow improvement
Client & Situation
A globally recognized high-end restaurant group operating on the West Coast of Canada identified a strategic opportunity to expand into Eastern Canada. The clients had already invested multiple years and significant capital into renovating the new location. However, with the macroeconomic environment softening, the clients needed a strong liquidity position to ensure a successful launch. At the same time, the flagship West Coast location required upgrades to aging furniture and fixtures before peak season.
Challenges
The opening of a major East Coast location required substantial liquidity reserves to manage operational ramp-up in a weak economy.
- The original flagship location needed capital improvements.
- The business needed a financing strategy that could support both growth and resilience, without weakening the balance sheet.
Role & Mandate
Acted as the project’s financial advisor, working directly with ownership and management to:
- Build a capital strategy that increased liquidity for expansion.
- Secure long-term financing on favourable terms to support growth, upgrades, and risk management.
- Reviewed and rebuilt the client’s financial projections, converting them into a bank-ready lender package aligned with credit underwriting standards.
- Prepared all supporting financial materials, including the opening balance sheet, lease and equipment schedules, ratio analysis, and multi-year business growth package.
- Structured the financing request to blend government-backed programs with commercial lending products, maximizing leverage and minimizing cost.
Achievements
- A term facility combining government-backed components with the bank’s own commercial lending.
- A full equipment lease facility to support upgrades at the flagship location.
- Additional working capital availability to strengthen liquidity for market expansion
Quantified Outcome
Secured over $2 million in combined working capital and equipment financing — improving liquidity, enabling the East Coast opening, and supporting capital upgrades at the primary location.
Why It Matters
The financing structure gave management both the growth runway and risk buffer required to expand nationally during an economic downturn. It allowed them to open the new location with confidence while maintaining operational excellence at the original flagship.