Gift card sales bring cash in now—but you owe the value when customers redeem. Here's how it affects cash flow.
How Gift Cards Affect Cash Flow
You receive cash at sale; liability sits until redemption. Redemption can spike after holidays. See restaurant cash flow management. Don't treat gift card cash as free—reserve for redemption. Restaurant cash advance or restaurant working capital can bridge gaps when redemption spikes. See restaurant funding options.
Frequently Asked Questions
How do gift cards affect restaurant cash flow?
You get cash at sale; you owe value at redemption. Don't treat gift card cash as free—reserve for redemption.
When do gift cards get redeemed?
Often after holidays. Plan for redemption spikes. Reserve cash or know your funding options.
Can restaurant funding help with gift card liability?
Yes. Restaurant funding can bridge gaps when redemption spikes and cash is short.