This restaurant concept has a number of successful locations in the Pacific Northwest.  It unsuccessfully attempted to develop a unit in the Southeastern part of the United States.  The southeast operation was closed.  We were retained to franchise one unit to recapitalize the business.  The owner approached his Vice President of Operations to become the first franchisee.  This person stepped up to the opportunity.  We were able to develop a fair, but effective, franchise agreement and to assist the prospective franchisee in sourcing financing to make the purchase.

Prior to the franchise sale, the owner and one of his operators completed development and opened a new concept.  That concept has been very successful since opening.  Unfortunately, over a recent two-year period, both management problems and shrinking operating margins brought about in part by the Boeing and Dot.com implosion necessitated making personnel changes.  A new operations manager was appointed in mid-2001.  He brings solid multiple-unit operations management experience to the company.  He set procedures and policies in place to get costs back in line. 

As a result of the shrinking operating margins during this two-year period, we subsequently franchised two additional restaurants to further recapitalize the business.  We were intimately involved in the operations and personnel discussions.  We were also instrumental in helping the next two franchisees obtain financing to facilitate the process.

September 11, 2001 happened and like all dining establishments in the Pacific Northwest, the revenues declined substantially.  Each unit has remained profitable, but profits would not support the corporate infrastructure and debt service requirements.  The company was forced to file for bankruptcy protection under Chapter 11 for reorganization.  Early in 2002, business volumes started to correct.  With the cost controls that were in place, margins started to return so that eventually by franchising one or two additional restaurants the company could retire all outstanding obligations.  

In our consulting capacity, we formulated the franchise approach, assisted potential franchisees to locate financing, assisted the company in developing its plan of reorganization and continue to provide ongoing services to assist this client with cost controls, personnel decisions and financial planning. 

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Last Modified:  April 17, 2006