Working Capital
The cash reserves needed to cover operating expenses during the initial months before a restaurant reaches profitability, typically 3-6 months of operating costs.
Related Terms
Total Investment
The complete financial commitment required to open a franchise, including franchise fee, build-out, equipment, initial inventory, working capital, and pre-opening expenses.
Ramp-Up Period
The initial months after opening during which a new restaurant builds customer awareness and sales volume before reaching mature operating performance.
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