In the fast-paced world of fast food and casual dining, timing is everything—and when opportunity knocks, quick-service restaurants (QSRs) need the capital to scale fast. Whether it’s opening a second location, upgrading kitchen equipment, or launching a delivery app integration, smart financial planning is critical. That’s why QSR owners increasingly turn to business loans for expansion.
In this guide, we explore how QSRs use different financing strategies to grow efficiently and stay competitive in a saturated market.
Quick-service restaurants have a unique advantage: scalability. With streamlined menus, repeatable processes, and strong branding, it’s possible to replicate success across new locations or channels. Expansion can help you:
Capture new market segments
Increase revenue with higher volume
Improve economies of scale (e.g., bulk food purchasing)
Enhance your brand’s regional visibility
Add value to your business for future franchising or resale
But rapid growth comes with a hefty price tag—and that’s where financing comes in.
Before exploring loan options, it’s important to understand what you’ll be financing. QSR growth often requires investment in:
Leasehold improvements and buildouts for new locations
Commercial kitchen equipment
Hiring and training staff
POS systems and digital ordering platforms
Marketing and advertising campaigns
Working capital for early operational costs
Depending on your growth strategy, these costs can range from $100,000 to $1 million+ per location.
Backed by the Small Business Administration, SBA 7(a) loans are popular among restaurant owners due to their long repayment terms and low interest.
Loan amounts: Up to $5 million
Interest rates: ~7%–9.5%
Terms: Up to 10 years for working capital; 25 years for real estate
Use for: Equipment, renovations, expansion, or acquisitions
Learn more at SBA.gov
QSRs often need high-volume fryers, grills, or refrigeration units. Equipment financing helps spread the cost of large purchases.
The equipment serves as collateral
Fixed monthly payments
Ideal for drive-thru buildouts or digital kiosks
A line of credit offers flexibility to cover fluctuating needs, from staff payroll during expansion to new inventory purchases.
Revolving credit; reuse as you repay
Only pay interest on the amount you use
Perfect for unpredictable or phased expansion projects
If you're expanding a QSR franchise (like Subway, Domino’s, or Chick-fil-A), some lenders specialize in franchise lending.
Streamlined approval due to proven brand model
Use funds for franchise fees, buildouts, and operating capital
Terms vary by lender and brand
For QSR owners buying a location or building a new unit, a commercial mortgage may be ideal.
Longer terms (up to 25 years)
Competitive rates
Real estate acts as collateral
Create an expansion plan with detailed cost projections
Identify location(s) and secure preliminary site approvals
Estimate your funding needs for buildout, labor, and marketing
Research and compare lenders that work with QSRs
Prepare your business financials and apply for the right loan
Execute your build and hiring plan in phases
Monitor ROI and performance metrics from the new unit
A regional sandwich shop in Texas used an SBA loan of $350,000 to open two new locations in high-traffic areas. Funds went toward leasing, equipment, hiring, and local marketing. Within six months, each store turned profitable, and the brand leveraged that success to secure a second round of financing—this time using a business line of credit—to launch a food truck and test new markets.
Underestimating soft costs: Don’t forget licenses, insurance, and training
Overleveraging debt: Only borrow what your revenue can realistically repay
Expanding too quickly: Prove the model before replicating
Neglecting digital upgrades: Today’s QSRs must offer delivery, mobile orders, and contactless payment
SBA Lender Match Tool
Score.org Business Mentors
America’s SBDC for local expansion support
Expanding your quick-service restaurant is one of the most exciting moves you can make—but it requires careful planning and smart financing. With the right business loan, QSR owners can unlock new locations, boost production, and meet modern consumer expectations without cash flow strain. Whether you're launching your second store or your fiftieth, strategic financing ensures your growth is both scalable and sustainable.