Marc Mahaffey’s Post

Gain access to a free #metricscalculator to measure your restaurant's: • Inventory turnover rate • Percentage of a strategic category • Franchisee turnover rate + 12 more! 👉 Download today: https://lnkd.in/dsCng7Kv #restaurantmetrics #restaurantoperations

The food and drink industry occupies a large portion of net-leased retail space, and in the coming year restaurant sales are projected to increase 6%. Just over one third of people visited casual dining restaurants at least one a week in 2023. As budget constraints ease post-COVID, another increase of 6% is forecasted for 2024 on top of 2023’s 6% increase. Operators managed inflation through menu price increases from 2021-2023 to account for raising expenses. The article also gives examples of "Top 500" chains looking to expand in the coming years: McDonalds to add 25% more locations by 2027, Qdoba to add 50% more locations by 2033, Portillo's to add 23% more locations by 2026. Operators also expect the use of online applications to increase efficiency and customizability, along with the expanding market of "Ghost Kitchens" which are only available for take-out and delivery. #wisdomwednesday #retail #commercialrealestate The Dumes | Teets | Mullowney Group of Marcus & Millichap

There is a lot of buzz around franchising. And it certainly works for many chains, but it’s not the only way to grow and attain good margins. Some large restaurant chains with a moderate part of their systems franchised have also been able to engineer better-than-average profitability. Some examples of publicly traded restaurants doing this in the U.S. are Dave & Buster’s, Chipotle, and Darden. The three are in different categories: eatertainment, fast-casual, and casual dining. As Einstein said, a problem can’t be solved with the same line of thinking that created it. And while its hard for restaurant chains to maintain margins, many do very well. For those looking to improve their company’s bottom line, rather than just keep track of it, the most powerful lever at their disposal is to act as their own activist. We recommend a holistic approach be applied to looking at the organization, working across functional areas and down individual line items of the restaurant P&L while reviewing factors impacting performance both inside and outside the business — also, some outside help never hurt. #restaurants #finance #EBITDA

RESTAURANT OWNERS: Take note: According to BizBuySell's quarterly insight report... The restaurant sector continues its post-pandemic recovery, as transaction volume remains steady year-over-year, yet 8% lighter than the previous quarter. Buyers focused on higher-priced restaurants, with the median sale price up 9% since last year and 13% since last quarter. Robin Gagnon, co-founder of We Sell Restaurants, comments, “We are seeing deal sizes much higher than last year and more cash buyers which supports that some buyers have simply been holding onto cash and sitting on the sidelines but have now jumped in. We are also seeing existing owners of franchise units much more willing to look at resales versus building from the ground up.” Restaurants that sold in Q1 also show healthy financials as more customers opt to dine out, with median revenue up 11% over the previous quarter and 9% over the previous year. Median cash flow was up 14% over the previous quarter and 4% over the previous year. As Q1 sale prices indicated, buyers are willing to pay more for restaurants with strong financials – those winning some of the toughest challenges around wage hikes and higher food prices. Whether it’s high-volume popular mainstays or high-tech convenience, many restaurants are on the upswing. #companysellers #businessbrokers #sellyourbusiness #buyabusiness #businessforsale #businessvaluations #exitplanning #exitstrategy #businessowner

Friday may not come soon enough if ever. TGI Fridays TGI Fridays closes more than a quarter of its locations as bankruptcy nears. Like many restaurants, changing consumer preferences and lower-cost competition from fast food has left TGI Fridays on the brink. This isn't casual. TGI Fridays has been dealing with declining revenue for years, and its whistling-glazed flat iron steak and churro twists have been unable to lure enough customers back. While dining levels are back up in general to pre-pandemic levels, sit-down dining has continued to languish. And while fast food has certainly gained with consumers, the industry as a whole is facing an inflection point. We're cutting back. According to estimates, one-third of U.S. consumers have cut back on fast food, sit-downs, and delivery alike since the start of the year. Nearly half have been cooking dinner more at home over the same period, while 38% do the same about lunch. That's not what TGI Friday's wants to hear. It's going to require more than 30 pieces of flair. For TGI Friday's, the chain is hoping to seek a buyer and restructure its debt, but that may be a tall order https://lnkd.in/g_2bCGjT #tgifridays #restaurant #fastfood #consumers #food #inflation #economy

Corporate vs. franchise model can impact how a company approaches their supply chain. There are benefits to both models. More below from Michael Halen from Bloomberg Intelligence

While food is the core of any restaurant business, exploring additional revenue streams can provide significant opportunities for growth and profitability. Bradley Saxe, Co-CEO at Goldbergs Group, will join a panel of experts at Restaurant Franchising & Innovation Summit 2025 who will delve into strategies for diversifying your restaurant's income, including: ✅ Merchandise and retail ✅ Catering and event services ✅ Meal kits and delivery services ✅ Partnerships and collaborations #RFISummit #restaurants #strategy #growth

Darden Restaurants (DRI) Q2 2025 earnings - https://lnkd.in/gyqSFPnP Darden Restaurants on Thursday reported quarterly earnings and revenue that met analysts' expectations and better-than-expected same-store sales growth at Olive Garden and LongHorn Steakhouse.Shares of the company closed up 14% on Thursday.Here's what the company reported compared with what Wall Street was expecting, based on a survey of analysts by LSEG:Earnings per

Shake Shack (SHAK), a growing restaurant chain, ended 2023 strongly with successful sales strategies and margin expansion. CEO Randy Garutti highlighted the opening of 41 new U.S. restaurants and 44 international locations, with same-store sales rising 2.8% year-over-year despite inflation. Potential for further expansion in 2024 if Federal Reserve maintains or lowers interest rates. With 518 locations (334 in the U.S.) by end of 2023, significant growth potential remains. Bullish on SHAK above $87.00-$88.00, targeting $145.00-$150.00. Investors should monitor sales growth and expansion efforts. #SHAK #Investing #StockMarket 

When your company changes its logo, how important is it that you retire that t-shirt with the old logo? How about changing that pricey store sign? In Burger King’s case, they thought it was worth a purchasing their largest franchisee (for $1 billion in cash) to ensure brand consistency across locations. They believe that updating their image will help them reclaim their #2 market position from Wendy’s. Another great case study proving that investing in brand consistency has impact on market share. Love to see it. #branding #marketing