What Emerging Brands Should Consider Ahead of Investment

Investment can be beneficial, but it’s crucial to ensure that the timing, reasons, and partners are right. Both Fernandez and Andrew Smith of Savory Fund often advise restaurant owners against seeking investment prematurely, noting that not all concepts are scalable or ready for outside capital. Successful brands typically have demonstrated their viability and developed solid unit-level economics.

As illustrated by examples like South Block and NaanStop, operators should focus on refining their processes and ensuring they are prepared for investor scrutiny. This includes maintaining strong legal and financial documentation. Once engaged with investors, operators must adapt to a new role that involves delegating day-to-day tasks and prioritizing detailed operational documentation.

While the investment can alleviate some burdens, it also introduces new responsibilities. Successful operators must balance their growth ambitions with their mental well-being, understanding that the stresses of scaling can shift rather than diminish. Read Full Article