Multi-Unit Ghost Kitchen Rollup
Capital structures for operators consolidating 3, 5, or 10+ ghost kitchen sites into a single portfolio. $500,000 to $1,500,000+ financing layer, often combining senior debt, revolving credit, and earn-out tranches.
What does multi-unit rollup financing actually fund?
Rollup financing funds portfolio acquisitions (multiple sites in one transaction), revolving credit secured against combined portfolio cash flow, mezzanine financing in PE-backed plays, and earn-out tranches where part of the purchase price is tied to post-close performance. Most rollups blend two or three of these structures — see multi-unit rollup economics for how operators stack the capital.
What loan size should I expect for a 5-site rollup?
The financing layer for a 5-site rollup typically runs $750,000 to $1,500,000, against a total deal value of $1.5M to $4M depending on per-site cash flow. Senior debt covers 60-to-70% of deal value; the rest is operator equity, seller financing, or mezzanine.
Which lenders fund rollup plays versus traditional restaurant lenders?
Rollup-comfortable lenders include alternative business lenders, equipment lenders with portfolio underwriting capability, and a small set of SBA brokers with ghost kitchen experience. Traditional restaurant lenders often pass because rollups lack the dining-room collateral signal they underwrite against.
How is portfolio cash flow underwritten?
Lenders aggregate trailing-12-month P&L across all sites being rolled up, apply a haircut for transition risk (typically 15 to 25%), and size senior debt to a target debt-service coverage ratio of 1.25x to 1.50x. Strong portfolios with consistent per-site economics underwrite faster than uneven portfolios.
How do mezzanine and earn-out structures work?
Mezzanine financing fills the gap between senior debt and operator equity at a higher rate (typically 12 to 16%) and longer term. Earn-outs tie 10 to 30% of the purchase price to post-close performance, paid to the seller over 12 to 36 months based on revenue or EBITDA thresholds.
Can I bundle existing units and acquisition targets under one revolving line?
Yes — operators with 3+ producing sites often qualify for a revolving line that funds both existing operations and future acquisitions, drawing against the combined collateral pool. Each new acquisition gets added to the borrowing base after a 30-to-60-day stabilization window.
Frequently asked questions
- What does multi-unit rollup financing actually fund?
- Rollup financing funds portfolio acquisitions (multiple sites in one transaction), revolving credit secured against combined portfolio cash flow, mezzanine financing in PE-backed plays, and earn-out tranches where part of the purchase price is tied to post-close performance. Most rollups blend two or three of these structures.
- What loan size should I expect for a 5-site rollup?
- The financing layer for a 5-site rollup typically runs $750,000 to $1,500,000, against a total deal value of $1.5M to $4M depending on per-site cash flow. Senior debt covers 60-to-70% of deal value; the rest is operator equity, seller financing, or mezzanine.
- Which lenders fund rollup plays versus traditional restaurant lenders?
- Rollup-comfortable lenders include alternative business lenders, equipment lenders with portfolio underwriting capability, and a small set of SBA brokers with ghost kitchen experience. Traditional restaurant lenders often pass because rollups lack the dining-room collateral signal they underwrite against.
- How is portfolio cash flow underwritten?
- Lenders aggregate trailing-12-month P&L across all sites being rolled up, apply a haircut for transition risk (typically 15 to 25%), and size senior debt to a target debt-service coverage ratio of 1.25x to 1.50x. Strong portfolios with consistent per-site economics underwrite faster than uneven portfolios.
- How do mezzanine and earn-out structures work in this context?
- Mezzanine financing fills the gap between senior debt and operator equity at a higher rate (typically 12 to 16%) and longer term. Earn-outs tie 10 to 30% of the purchase price to post-close performance, paid to the seller over 12 to 36 months based on revenue or EBITDA thresholds.
- Can I bundle existing units and acquisition targets under one revolving line?
- Yes — operators with 3+ producing sites often qualify for a revolving line that funds both existing operations and future acquisitions, drawing against the combined collateral pool. Each new acquisition gets added to the borrowing base after a 30-to-60-day stabilization window.
- How does a PE-backed rollup financing layer work?
- PE-backed rollups typically use a senior secured facility (50-to-60% of deal value), mezzanine debt (10-to-20%), seller financing or earn-out (10-to-20%), and PE equity (20-to-30%). The senior lender expects audited financials, a defined integration plan, and a holdback for first-year working capital needs.
- What is the difference between senior debt and mezzanine in this market?
- Senior debt sits first in the capital stack, secured by equipment and operating entity, priced at 9 to 13%, typically 5 to 7 year amortization. Mezzanine is unsecured or second-lien, priced at 12 to 16% with warrants or success fees, used to bridge the gap when senior debt + operator equity does not cover the full deal.
See what you qualify for
Soft credit pull first — no impact to your score. Compare matched lenders in about 2 minutes.
See financing options