Orchard Restaurant Group Secures Growth Capital

Dallas-based Orchard Restaurant Group used a $225K working capital loan to optimize inventory management and expand operations across three locations, achieving 28% revenue growth within 12 months.

Roslyn Katherine Martinez, Chief Operating Officer & Co-Founder of Orchard Restaurant Group a hospitality business in North Texas standing with an open, professional stance

Executive Summary

Orchard Restaurant Group, a three-location upscale casual dining operator in North Texas, faced significant working capital constraints that limited growth potential and operational efficiency. The organization secured a $225,000 working capital loan to strengthen inventory management, extend vendor payment terms, and fund expansion initiatives during peak seasons.

The Challenge

Seasonal revenue fluctuations created cash flow gaps during slower months, limiting ability to maintain optimal inventory levels
Inconsistent supplier relationships across three locations resulted in higher food costs and variable quality standards
Insufficient capital reserves prevented investment in point-of-sale upgrades and kitchen equipment needed to increase table turnover

The Solution

Orchard Restaurant Group selected a working capital loan as the ideal financing solution because it provided flexible, unsecured capital without requiring collateral or equity dilution. Traditional equipment financing was unsuitable since the company's primary needs centered on operational liquidity rather than fixed assets. The $225,000 loan enabled immediate implementation of a centralized procurement strategy across all three locations, negotiating better vendor terms and reducing food costs by 12%. Additionally, funds were allocated toward hiring a full-time inventory manager and implementing restaurant management software to optimize purchasing cycles and reduce waste.

The capital injection also facilitated strategic staffing during peak seasons, reducing customer wait times and improving table turnover rates by 18%. Management reserved $45,000 as an emergency reserve fund to weather future seasonal downturns, fundamentally changing the company's operational resilience and financial planning capabilities.

Roslyn Katherine Martinez, Chief Operating Officer & Co-Founder
"This working capital loan was exactly what we needed to bridge the gap between seasonal fluctuations and maintain consistent quality across all three locations. We immediately reinvested in our supply chain and saw remarkable improvements in both cash flow and customer satisfaction."

The Outcome

Revenue increased 28% year-over-year to $3.58M, exceeding initial projections by 8%
Food cost percentage decreased from 31% to 27% through centralized procurement and waste reduction initiatives
Customer satisfaction scores improved 23%, with repeat visit rates increasing from 34% to 47%

Conclusion

The $225,000 working capital loan transformed Orchard Restaurant Group's operational capabilities and financial stability. The investment in supply chain optimization and strategic staffing generated compound returns that far exceeded the loan's cost, positioning the company for sustainable growth.

Looking Forward

Management is evaluating a second location expansion in Arlington, targeting 2025 opening. The company has already repaid 40% of the principal through improved cash flow management and plans to explore additional financing options for the proposed fourth location.