Watching some restaurant franchisee network acquisition efforts underway currently, a number of common issues seem to be emerging. The need to get to the price right is enormous. Buying more restaurants is as final of a decision as is picking a site, signing a franchise agreement or building a new unit. You’ve got only one change to get it right.
All five of the points below have been noted in restaurant acquisition efforts underway currently.
Compose cross checks on the…Continue
Limitations of EBITDA as a Meaningful Financial Metric
In the restaurant finance world, the big number is the EBITDA—EBBADABADOO as some call it. EBITDA is earnings before interest, taxes, depreciation and amortization, and is really a sub-total to the income statement. It is earnings without any charges for cost of funds, taxes or capital spending.
EBITDA’s use began popularized as a credit metric, used in the 1980s M&A and credit analysis world—to…Continue
Fast Casual the Rush To The Middle Driving Non-Traditional Meal Occasions
By Steven Johnson Grocerant Guru, at Tacoma, WA based Foodservice Solutions® and John Gordon
Restaurant Customer Migration Expanding
Five years from now chain restaurant leaders will be attending the National Restaurant Show in Chicago networking, learning and…Continue
The restaurant space will be interesting in 2013. Sales issues, cost issues, expansion issues, franchisee issues. There are still too many restaurants in the US and x-US markets sales increases have slowed. The two industry leaders, McDonald’s (MCD) and Darden (DRI), are both somewhat in the penalty box and under pressure. Here are our thoughts on 2013 issues and opportunities.
Comps Cliff Coming: In looking at 2013, its likely restaurants will get off to a bad start. In Q4…Continue
Restaurant sector challenges of negative same store sales comparables, consumer unease, rising food commodity costs and some magnitude of increased heath care costs emanating from Obama Care appeared in 2012. The same issues will be present in 2013.
But all is not lost. There are initiatives that can offset the negatives. Here are thoughts of what restaurants, both chain operators and independents, of all stripes, simply have to fix in 2013 operationally to meet these…Continue