RELEVANCE OF THE CONCEPT NOW AND IN THE FUTURE
Methodology: We start every Blink by visiting and experiencing many of the brand’s restaurants in multiple geographic areas. We add visiting the competitions restaurants and adding our experience across the country with what is flourishing in our industry. We always do a “deep dive” into the numbers as they are the report card on how the Brand is viewed by consumers.
OPERATIONAL ANALYSIS
Methodology: The methodology follows much the same pattern as the Brand analysis with what we see and experience as customers. We talk with the staff and try to ascertain their attitude and knowledge of the restaurant, its food and heritage. Additionally, we read online reviews from many sources knowing full well that a broad cross section of reviews paints a better picture.
FINANCIAL ANALYSIS AND DILIGENCE
Methodology: We approach this portion of our Blink focused on several key components on a current and historical basis.
- Sales, sales trends, customer count trends and check average.
- Prime costs and prime margins
- Restaurant level operating profit
- Occupancy cost and or fee properties
- Corporate G&A
- Company EBITDA
- Sales to Capitalization ratio on new restaurants
ORGANIZATIONAL ANALYSIS AND EVALUATION
Methodology: We typically start with an organizational chart with resumes and tenure. We add interviews with key corporate team members. We reference structures of similar sized companies along with the age of the companies. Ownership considerations are applied in the analysis. We couple that with the performance of the company and draw our conclusions.
STRATEGIC ALTERNATIVES
Methodology: Simply stated, we consolidate all the information and draw whatever course is the best or most likely for the company.