What costs come with reopening?
Payroll for staff returning before full sales, restocking perishables that were discarded, cleaning and inspections, and catching up on bills that came due during the closure.
Staff who were out of work may have taken other jobs. Bringing them back quickly, with clear communication, helps the restaurant reopen at full strength.
What about insurance?
Business interruption coverage may reimburse some lost income and expenses, but claims take time. Funding can bridge until insurance pays.
Document everything: dates, losses, repairs and payroll. Strong documentation supports a faster claim.
Check vendor relationships before reopening. Vendors who were not paid during the closure may require payment before delivering again. Calling them in advance, explaining the timeline and agreeing on a payment plan keeps deliveries flowing for opening day.
Consider a soft opening with a reduced menu. It lets the team get back into rhythm, reduces waste while traffic rebuilds and keeps the first week’s food costs predictable.
How do I bring customers back?
Announce the reopening, update online listings, reach out to regulars and consider a reopening event.
Customers may assume you are still closed; clear communication across channels matters.
| Item | Timing | Note |
|---|---|---|
| Staff recall | Before reopening | Clear dates |
| Restock perishables | Days before | Discard affected items |
| Inspections | Before reopening | Schedule early |
| Customer outreach | Opening week | Listings and social |
Worked example: reopening after a kitchen fire
A restaurant averaging $92,000 in monthly deposits reopens after a two-week closure from a kitchen fire and needs $24,000 for payroll, restocking and overdue bills while its insurance claim is processed. Using an illustrative factor rate of 1.21, $24,000 would mean $29,040 repaid over roughly 5 months: 105 daily payments of about $277.
That works out to about $5,808 a month, or 6.3% of the $92,000 this business deposits monthly, and the total cost of the money is $5,040. Sales return over the following weeks, and the insurance claim, when paid, can help with the remaining costs.
For comparison, repaying the same $29,040 over 3 months would lift the monthly outlay to about $9,680, or 10.5% of deposits, and because shorter terms often carry a lower factor rate in practice, it is worth asking to see both before choosing.
| Average monthly deposits | $92,000 |
|---|---|
| Amount funded | $24,000 |
| Factor rate (illustrative) | 1.21 |
| Total repaid | $29,040 |
| Cost of the funding | $5,040 |
| Term | about 5 months |
| Daily payment (105 payments) | $277 |
| Payments as a share of deposits | 6.3% |
Who this fits
Usually a fit
- Restaurants reopening after a closure
- Owners awaiting insurance claims
- Operators recalling staff
When another route makes more sense
- Closures fully covered by quick insurance payments
- Owners with reserves
- Restaurants that may not reopen
What you’ll typically need
- Recent business bank statements
- Closure documentation
- Business details
Frequently asked questions
Can funding bridge an insurance claim?
Yes; it can cover costs until the claim pays.
Will a closure hurt my application?
Explain it; funders look at history before and after.
How quickly can money for a reopening arrive?
Most restaurant files get a same-day decision once bank statements are uploaded, and approved money for a reopening often lands within one or two business days.
What credit score do I need to fund a reopening?
For a reopening, owners with scores from 500 can be considered because recent deposits carry the most weight, and stronger credit usually earns a lower cost and a larger offer.
Reopening soon?
Apply and restart strong.
Updated October 6, 2026