Capital squeezeCapital squeeze

Sarah E. Lockyer

Bank of America and GE Capital are currently running TV commercials touting their lending partnerships with clients — Pink’s Hot Dogs and Wendy’s franchisee Bridgeman Foods, respectively — but ask most operators today whether they can easily secure a loan, and the answer will be no.


Annual chain restaurant loan originations are still below 2008 levels, according to Restaurant Research LLC, a restaurant data analysis firm in Redding Ridge, Conn. Loan originations totaled about $7.1 billion in 2007, then fell to $4.5 billion in 2008, and have since then dipped even further, hitting $3.0 billion in 2009. During 2010 and 2011, total originations showed an uptick — to $4.0 billion and $4.3 billion, respectively — but are still...