I am often asked what is the best legal structure for a multiunit operator. The answer can vary in a number of ways, especially if you have more than one concept which can necessitate a specific structure. Normally if it’s a franchise, the franchisor requires its concept be in its own entity. The structure may […]
I really don’t want to write another article about what we learned from the pandemic, you probably don’t want to read one. But, I would be remiss if I didn’t point out a few things that are important in terms of your business’s economic value and soundness going forward. These are six key things I […]
While revenue is still the biggest issue affecting the restaurant industry, recruiting, securing and retaining employees are all tied for second place. To be considered an employer of choice, restaurant owners need to use creative and aggressive compensation techniques. I have divided compensation techniques into four categories: 1. Direct compensation: If you haven’t already, develop […]
Let’s start with the obvious, but often overlooked: Controlling your real estate in some form of ownership, especially in today’s restaurant market, is preferable to leasing. Control gives you the option of converting your investment into cash using a variety of tools, such as a sale-leaseback. More importantly, real estate can be a lucrative investment. […]
Two words come to mind for the anatomy of a deal the last few years: flexibility and creativity. Those two words were the hallmark of deals completed during the height of the pandemic and are still appropriate for 2022 deals. Let’s look at some basic controlling factors affecting deal pricing. First, since deals are normally […]
As we start the new year, I’ve been receiving a lot of questions about how companies can differentiate themselves in compensation planning. This afternoon I’ll be presenting a series of creative techniques to the Private Directors Association, the only national association dedicated to using governance strategies as a means of growing and sustaining private companies’ […]
If it’s December, that means I’m thinking and writing about yearend tax planning. Being a tax lawyer, it is always one of my most enjoyable articles to write. This year, however, is the hardest tax article I have written because of all the uncertainty. So, I am going to start off with what we know […]
At the recent Restaurant Finance & Development Conference, I had the good fortune of moderating a real estate panel with three experts: Victor Calanog, a Moody’s economist renowned in the real estate sector; Glen Kunofsky, a sale/lease back expert; and Bill Lenehen, CEO of Four Corners Property Trust, a major restaurant real estate investment trust. […]
When clients and fellow restaurateurs ask what their restaurant is worth, my general reply is that it’s worth a multiple of your cash flow, or EBITDA (earnings before interest, taxes, depreciation and amortization). Next, I look at what that multiple is based on whether it is a growth concept, an early-stage company or a mature […]
