Best Credit Card for Restaurant Owners for 2024

It's true that many of the best business credit cards tend to cater more to companies with budgets built around pens and paper than spices and sporks. But you can still find great credit card options for your restaurant, whether you specialize in fine dining or takeout. Start your search with our guide to the best credit card for restaurant owners.

Can you get a business credit card for your restaurant?

Yes, restaurant owners qualify for business credit cards. Restaurants are businesses. This applies to takeout joints as much as five-star sit-down affairs.

Any size of restaurant can qualify as a business. Have a small food truck you operate yourself? Even sole proprietors are eligible for business credit cards. You can get a business credit card as any of the follow business types:

• Sole proprietor
• Independent contractor
• Partnership
• LLC
• LLP
• S-corporation
• C-corporation
• B-corporation
• Nonprofit

You don't need to qualify for an EIN (Employer Identification Number), either. If you don't have employees, you can simply use your Social Security number (SSN) as your tax identification number when applying for a business credit card.

Small business credit cards vs. corporate credit cards

Another option some restaurant owners may want to consider is a corporate credit card. While the rewards won't necessarily be any better suited to restaurant expenses than a small business card, it might be better for your credit.

Most small business credit cards require a personal credit check when you apply. This is because of the personal guarantee. Essentially, you agree to share liability for your business credit card with your business. If your business is unable to repay the balance on your card, you'll be required to do it yourself.

LEARN MORE: Do Business Credit Cards Affect My Credit Score?

All this means that if you default on a business credit card, it can hurt your personal credit. Corporate credit cards, on the other hand, have nothing to do with your personal credit.

Should restaurant owners get a business credit card?

Many restaurant owners are more reliant on vendor accounts than credit card accounts. For example, most restaurants get their food through specialist vendors that offer larger quantities and greater value than the corner supermarket.

However, some things aren't available on an account -- like that wholesale club run for foil sheets. Those types of expenses are often best put on a reliable business credit card. But that's not the only reason for picking up a business card. There are a number of pros to using business credit cards for your restaurant's expenses.

Pros of business credit cards for restaurants

The ability to earn rewards on eligible purchases is often enough of a reason to get a new credit card -- and it shouldn't be discounted here, either. But there are also other, more specific, reasons to get a business credit card for your restaurant, most of which have to do more with convenience than anything else. Here are a few pros to consider:

• Higher credit limits: Business cards tend to have much higher credit limits than consumer credit cards. Restaurant owners with high food and utility expenses may benefit from a card they won't max out by the end of the first week of each billing cycle.
• Accounting organization: A pillar of good business accounting is separating personal and business expenses. Pairing a business credit card with a business bank account can keep your finances organized and make tax time significantly less stressful.
• Build business credit: As an LLC or corporation, your restaurant can qualify for a business credit score. This can help you get vendor accounts and other forms of business financing. Your card issuer will report to the commercial credit bureaus, so business credit cards can help build business credit when you pay on time and keep your ongoing balances low.
• Employee cards: The business owner isn't always the one making the purchases. Many business credit cards offer free employee cards. You can set individual spending limits for each employee card and track expenses as they happen.

While there are many reasons in favor of getting a business credit card for your restaurant, there is one major con to consider. Read on for more.

Cons of business credit cards for restaurants

The main drawback to getting a small business credit card for your restaurant is that you'll be hard pressed to find one with useful bonus categories. Credit card companies offer plenty of options for spending at restaurants -- just not for them.

Unfortunately, most cards with bonus categories for things like wholesale stores and supermarkets are aimed at individual consumers. But even if you went with a personal credit card, the best grocery rewards cards have caps on how many eligible purchases you can earn bonus rewards on every year.

LEARN MORE: Best Grocery Credit Cards

As a result, the best path for a restaurant owner who wants a business credit card is likely a card with better-than-average flat-rate rewards. For example, a card with a flat 2% cash back rate on purchases will be just as rewarding when you buy new pans at the restaurant supply store as it is topping off your pens at the office supply store.

Choosing a credit card as a restaurant owner

The typical advice for choosing a business credit card is to look at the bonus rewards categories. In this case, however, the rewards are less of a factor since it's hard to earn bonus points on the niche expenses unique to restaurant owners.

LEARN MORE: How to Choose a Credit Card

In the case of flat-rate rewards, the main choice is in currency: rewards points or cash back rewards. Cash back is simpler, as it can be easily redeemed for statement credit or gift cards. Points can be more valuable, especially travel rewards, but they take more work to redeem.

Besides the rewards, here are a few other features to consider when comparing credit cards:

• Cardholder benefits: Business credit cards come with everything from free employee cards to $0 fraud protection. Some even offer things like purchase protection and travel insurance. Benefits vary by issuer and card, so compare your options.
• Welcome bonus: Most rewards credit cards come with some type of rewards bonus for new cardholders. This is usually a lump sum of cash back or bonus points you earn after spending a certain amount after account opening. The best sign-up bonuses can easily be worth $500 or more.
• Annual fee: This is the cost of card membership. You can find great rewards cards with no annual fee. At the same time, some annual fees can be worth paying for extra perks or rewards.
• Intro APR offers: Many business credit cards will come with some sort of intro 0% APR offer. This can give you 12 months or more of interest-free purchasing. These deals are great for paying off larger purchases that may take a few months.
• Foreign transaction fee: Many cards charge foreign transaction fees, which are extra fees you pay on purchases made in non-U.S. currencies or that route through foreign banks. If any of your suppliers fall under these categories, it could be valuable to choose a card without foreign transaction fees.

Business credit cards aren't one-size-fits-all, especially for restaurant owners. Consider your options from the viewpoint of what your business needs -- not what anyone else says is the best card.

Compare the best credit cards for restaurant owners