Three invented restaurant cases: a prep-station machine package on equipment financing, a smallwares restock drawn on a credit line and set beside a six-month loan, and a card-sales advance at a counter that also takes cash. Hoods, walk-in coolers and gas lines are building work and stay outside this site.
At a glance
- Full-service restaurants, Jackson County, MS
92 employer establishments (CBP 2023)
- Limited-service restaurants, Jackson County, MS
99 employer establishments (CBP 2023)
- Restaurants with fewer than five employees
18 full-service and 10 limited-service (CBP 2023)
- Restaurants with a ZIP 39567 address
11 full-service and 21 limited-service (ZBP 2023)
Equipment financing for a Pascagoula, MS restaurant prep station: a mixer, a vegetable processor and a vacuum sealer
Take an invented case: a sit-down restaurant in Pascagoula, MS that makes its own bread and sauces sets up a second prep station with a 60-quart mixer quoted at $10,240, a vegetable processor at $3,260 and a chamber vacuum sealer at $2,390, so the invented package costs $15,890.
Spread over 42 months of equipment financing priced at 12.15% a year, the invented prep station runs $466.34 a month. By the 42nd invented payment the restaurant has paid $19,586.28, of which $3,696.28 is interest. The three machines carry serial numbers and a dealer quote, so a funding partner may treat them as the collateral for the agreement.
A mixer of this invented size may need its own electrical circuit. The machine is equipment; running a new circuit or a dedicated outlet to it is property work outside this site, so the dealer quote reads more clearly when the unit, delivery and setup are listed apart from any electrician's bill.
Replacing broken china in batches: a credit line draw for a Jackson County, MS restaurant
In a second invented case, the same restaurant replaces chipped plates, glassware, sheet pans and hotel pans in one order of $6,740. Smallwares wear out and get replaced in batches, which suits a revolving limit better than a machine loan.
Drawn on a business line of credit at a 14.45% annual rate, the invented china order shrinks by $1,200 of principal each month, plus interest on what is left, and the last of it goes in the sixth payment. Interest over those invented months comes to $270.21, starting at $81.16 in the first month and ending at $8.91 in the last.
The same $6,740 on a six-month working capital loan at a 15.6% annual rate would cost $1,175.00 a month in this invented comparison, with six payments totaling $7,050.00 and $310.00 of interest. In this invented comparison the draw costs $39.79 less in interest because the principal falls in even steps; the loan trades that for one fixed payment.
Cash sales and card sales at a Pascagoula, MS quick-service restaurant on a merchant cash advance
A merchant cash advance is collected from card sales only; the cash drawer stays out of it. In an invented case, a quick-service restaurant in Pascagoula, MS takes $12,900 at a 1.23 factor, so the funding source collects $15,867.00 in all and the invented advance costs $2,967.00.
Say invented daily sales run $2,600, with 75% on cards ($1,950.00) and the other $650.00 in cash. An 11% holdback on card sales takes $214.50 a day in this invented example, which reaches the full amount in about 74 days of card sales at that level.
If every invented sale went through a card reader, the same holdback would take $286.00 a day and finish in about 56 days. The total collected stays $15,867.00 in both invented versions; the card share only changes the daily amount and the number of days. An advance is a purchase of future card sales, so it carries a factor rather than an interest rate, and the agreement sets how any reconciliation works.
Jackson County, MS restaurant counts: full-service and quick-service restaurants, staff size and ZIP 39567
Restaurants with a payroll in Jackson County, MS split almost evenly in County Business Patterns 2023: 92 full-service restaurants (NAICS 722511) and 99 limited-service restaurants (NAICS 722513). Their payrolls listed 1,825 and 2,212 employees, which works out, by our division, to about 19.8 and 22.3 people per establishment.
Under-five staffs were rare among the county's restaurant employers: 18 full-service restaurants (19.6%) and 10 limited-service restaurants (10.1%) fell in that size class. That leaves 74 full-service and 89 limited-service restaurants with five or more employees on the payroll.
Counting by street address instead, ZIP Code Business Patterns 2023 found 11 full-service and 21 limited-service restaurants in ZIP 39567.
Restaurants run without paid staff appear in a different file, Nonemployer Statistics 2024: 27 full-service and 26 limited-service in Jackson County, MS. The Pascagoula, MS page has the city and ZIP 39567 figures, and the industries page groups restaurants with the other trades.
Restaurant work on the building that stays outside a Pascagoula, MS request
Deerbrook Lenders leaves these restaurant costs out, because each one is work on the building:
- Hoods, fire suppression, make-up air, grease interceptors and the ductwork that ties them into the structure.
- Walk-in coolers built into the space, new gas lines and new electrical circuits.
- Construction on a dining room, a patio or a second building, and any purchase of land or real estate.
- Costs for a restaurant that has not opened yet; the kitchen needs to be operating before it calls.
Repairs on existing kitchen equipment are an operating cost that can go into a working capital request, and countertop and plug-in units count as equipment along with the prep machines above.
By Deerbrook Lenders · Updated
