Restaurant Management

Join Our Newsletter and Get...

Restaurant Growth Kit

We’ve put together a collection of our best resources to help you grow and market your restaurant.


Restaurant Margins are Shrinking in the Middle East. Here’s How to Respond.

The foodservice industry is a game of inches. With average restaurant margins falling between 3% and 5% profitability, chain leaders face incredible pressure to increase revenue, optimize costs, and make their operations more efficient. This is a skill GCC foodservice companies will soon have to master. Even though these foodservice markets are some of the fastest growing in the world,…read more →Read more...

Restaurants Are Investing Less in CAPEX

Two of the more important metrics in understanding how a restaurant operation functions are the CAPEX-to-revenue and CAPEX-to-operating cash flow (Op.CF) ratios. These figures allow us to compare companies regardless of size, determine their long-term growth potential, and recognize their spending priorities. Capital expenditures, which describe any one-time cost, from property and equipment purchases to remodeling initiatives and the expense of…read more →Read more...

Foodservice Companies Prioritizing Stock Buybacks over CAPEX Investments

Ten years after the global financial crisis, America’s restaurant companies continue to sit on large sums of cash. Yum! Brands, to name just one, had a stockpile of $1.5 billion in 2017. Restaurants chains with capital reserves this large have a few options: they can buy back shares (which increases the value of the outstanding stock), boost dividend payouts to…read more →Read more...

How Multi-Brand Portfolios Compare to Single-Concept Companies

One of the easiest ways for foodservice groups to increase revenue is to make new acquisitions, but our analysis shows that restaurant portfolios with fewer than four brands tend to reach higher total sales growth than those with four or more. Data for the top 100 foodservice groups in the US shows that those with up to three brands have…read more →Read more...

Stunning Examples of Restaurant Enterprise Value Enhancements

Restaurant enterprise value (EV) is easy to calculate: market cap + debt – cash.  It’s much harder to understand what causes EV to rise and fall. To help unravel this mystery, we examined EV enhancements among publicly traded restaurants over the past 20 years, looking for trends that produced long- and short-term gains. We found that most of the big,…read more →Read more...

How Domino’s Turnaround Gained Nearly $12b in Enterprise Value

Any pizzeria owner or chain executives who keeps up with the business news is likely more than a little green with envy (by now, probably emerald). The reason: Domino’s is killing it online. While over 75% of the US restaurant industry is still struggling to get its act together and launch an app that actually works, Domino’s has leapfrogged the…read more →Read more...

Starbucks Racial Bias Training: Why It’s So Important

On Tuesday, May 29, Starbucks locations all over the United States closed for a mandatory, all-hands training. The company distributed multiple iPads to each store, which, along with a personal notebook for recording reactions to the training and a team guidebook, took small groups through the four-hour training. The iPads came loaded with videos that included messages from high-ranking Starbucks…read more →Read more...

How to Prepare for A Private Equity Restaurant Investment

The private equity world is currently a sellers’ market, but this won’t last long. High asset prices, intense competition among bidders, and ongoing geopolitical instability have made deals harder and harder to come by, meaning that there’s lot of dry powder looking for safe — and profitable — homes. (In fact, our consultancy has been approached by $3–$4b in buy-side…read more →Read more...

Private Equity Investment Overview for Restaurant Operators

How could you grow your business with a $50m private equity investment? Would you expand into new markets, roll out the prototypes you’ve been dreaming of, or deploy new technology to make it even easier for diners to get your food? We’re predicting a lot of activity in the lower middle-market segment, where strong valuations and solid growth are attracting a…read more →Read more...

Darden & Texas Roadhouse Grow Sales By Adapting to Consumer Preferences

In early May, 2018, the largest Applebee’s franchisee in the country, RMH Franchise Holdings, filed for bankruptcy. Though its story offers another cautionary tale for those following the decline of casual-dining restaurants, two chains have projected sales growth and earnings-per-share increasing, proving our maxim that, even when everyone is down, someone is still up. The following case studies show how…read more →Read more...