Putting out Fires in the Kitchen!
It’s a fragile industry defined by low profit margins and tight cash flow. Rely on our distressed business experience in the food service industry.
The Spectrum of our Food Service Engagements:
Serving up sound advice and services to struggling restaurants
Assisting in operational and financial shortcomings.
Putting Our Expertise to Action:
Serves for Dallas-based Restaurant Franchisor and associated enterprise stores across 3 distinct concepts in 90 locations. Resolute reviewed, vetted, and evaluated monthly and quarterly financial reporting; as well as advising and assisting in crucial fiscal matters including projected income statements, cash flows, and financial covenant levels. In addition, Resolute is evaluating and developing restructuring strategies.
Engaged as Financial Advisor for a Franchisee of an 11-unit scratch kitchen/bar in Southern California. Developed detailed cash flow model and forecasting tool to understand unit profitability and performance. Guided owner for sale of stores back to Franchisor.
Court Appointed Engagements
Extensive business acumen and fiduciary know-how in the food service industry
Stabilization, rehabilitation, or wind-down of existing operations; as well as Secured and Unsecured Creditors Committee, Financial Advisor to Debtors, and Trustee responsibilities.
Proven Experience in the Restaurant Industry:
Senior Managing Director Nathanial Curtis participated and contributed to interim executive management in a restructuring bankruptcy of 155 Carl’s Jr. / Hardees restaurants and 15 Pizza Patron locations in seven different states with $176 MM in annual revenue and 3,300 employees. Prior to engagement, the company had sustained negative cash flows each month. In the first full month of operations under new interim leadership, the company was cash flow positive. When company was returned to the minority investors three months later, the operating cash flow remained positive with 98% of employees retained.
In addition to being responsible for the day-to-day operations, a comprehensive forensic investigation into the management and financing of the company that ultimately resulted in the termination of several C-level and senior management employees.
Enterprise owned and operated 15 franchise restaurants in three states, including Chili’s, On the Border and Moonshine Grill. Franchisee utilized predatory cash advance lenders to continue cashflow in failing operations. Individual stores were neglected to the point of being unable to keep with brand standards and team members were demoralized. Resolute asserted control, staved off the predatory lenders, and restored stability to operation. Reliable management allowed staff of over 700 employees to thrive and led to improved quality of service.
After operations were successfully managed, Resolute administered the sale of the business enterprise of 11 Chili’s restaurants and related properties for nearly $12.5MM.
Finances were in a state of disorganization. Enterprise was delinquent on payroll and sales taxes. The nature of the family-owned enterprise led to complex and contentious disputes over how to properly run the business. Resolute stepped in and assumed day to day control of all business and staffing operations. Provided critical managerial services, including preparing and analyzing 13-week cash flow operating budget, calculating outstanding trust and sale tax liabilities, and negotiated repayment plans with taxing authorities. Navigated challenging inter-family politics and recapitalized the company for an exit.
Engaged as a Financial Advisor for Secured Creditor in pre bankruptcy and post petition environments. Enterprise had complicated and intertwined structure involving a Franchisor model with 25 nationwide locations as well as 7 corporate owned and operated stores in Southern California. Counsel was provided to assess risk and create a go-forward plan to include operational and financial concerns for unwinding Corporate stores from Franchisor for potential sale.
Restaurant Employees Managed
Annual Revenue of Restaurants Assisted
Restaurant Locations Managed
Trusted Source for Restaurant-Related Business Management Needs