Cash Flow Guide for Cafes and Restaurants in Australia

Why hospitality cash flow is so brutal

Cafes and restaurants have a unique cash flow profile: high daily revenue but razor-thin margins, high staff costs that can't be cut quickly, perishable stock that must be purchased in advance, and massive seasonal swings. A quiet winter can wipe out the gains from a busy summer.

The biggest cash flow pressures

• Wages: Typically 30-40% of revenue. Paid weekly. Non-negotiable.
• Stock: Perishable goods purchased 2-3 times per week. Suppliers want payment in 7-14 days.
• Rent: Commercial leases in good locations are expensive and paid monthly regardless of revenue.
• Payday Super (from July 2026): 12% of payroll now due every pay cycle. For a cafe with $8K weekly wages, that's $960 extra every week. Learn more.
• Seasonal dips: January (everyone's away), winter (foot traffic drops), and school term gaps hit hard.

The card surcharge ban now takes 8 cents off every $5.00 coffee paid by card. Here is the maths and what to do about it.

How an overdraft helps

A business overdraft acts as a permanent cash buffer. Draw during quiet periods, repay during busy ones. Use it to buy stock in bulk (better pricing), cover wages during a slow week, or bridge the gap when a catering invoice hasn't been paid yet. For a deeper look at financing a cafe, read our dedicated guide.

We recently funded a $50K overdraft for a hospitality business - approved and funded in 24 hours.

How much do cafes and restaurants need?

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