Investor Support
Investment decisions should be based on an in-depth understanding of the foodservice industry.
There are times when investment firms need specialized help before investing debt or equity into a foodservice company. Technomic can provide your firm with industry-specific data, solid observations, opinions, and conclusions regarding the real strength of a concept, its management team, and their growth plan. Technomic's investor support services focus only on industry-specific issues and may include the following areas:
- Industry trends
- Competitive positioning
- Recent performance in terms of sales trends and unit economics
- Operating system benchmarking
- Site selection process and strategy
- New unit development rate
- Consumer research
- Marketing programs
- On-site inspection of operating units
- Management's business plan
- Franchisee relationships and quality
- Supply chain systems
Regardless of which issues you need to explore, Technomic can help. With over 40 years of experience, we have long been recognized as the leader in this industry–providing assistance to chain restaurant operators, suppliers and the businesses that interface with them. Given the extent of our experience, we have accumulated substantial insights as to what separates the winners from the also-rans.
Consider some of the other ways we can be of assistance:
Financial institution support
There are times that financial institutions need specialized help when dealing with clients in a particular industry.
When a restaurant chain's diminishing EBITDA, for example, starts to weaken the quality of a loan or the return on
equity, it is critical to quickly take the correct actions. History has shown that restaurant chains are difficult
to turn around; even successful turnarounds often take considerable time.
Providing investor support services
In those cases where financial institutions or investors have senior-level debt or other capital invested in an
underperforming foodservice chain, Technomic can provide valuable marketing and operations advisory services in
formulating and evaluating various alternatives. We deliver advice on management's "stand-alone" programs
and plans, and compare them to those of potential buyers.
Formulating or evaluating turn-around programs
In many cases, a chain with deteriorating financial performance needs help in developing and implementing a
pragmatic business plan that will enhance EBITDA with a minimum of capital infusion. Technomic has worked with
numerous restaurant chains in helping them develop and implement workable business plans to improve top-line
sales and bottom-line performance.
Our due diligence engagements are individually designed to meet your needs and circumstances. Following are a number of clients that have already utilized our services in assessing various chain restaurants and food suppliers:
| Client | Subject of Engagement |
|---|---|
| ACI Capital | Qdoba |
| American Securities | El Pollo Loco |
| American Securities | Burger King franchisee in Puerto Rico |
| American Securities Capital Partners | Equipment supplier to manufacturers |
| BHF Capital | Souper Salad |
| Brockway Moran and Partners | Multi-unit Wendy's franchisee |
| Caxton-Iseman | Capital Buffets, Inc. |
| ICV Capital Partners | Frozen Asian foods supplier |
| ICV Capital Partners | Coffee equipment supplier |
| JP Morgan Capital Partners | CO2 systems to restaurants |
| Levine Leichtman Capital Partners | Two franchised restaurant chains |
| Levine Leichtman Capital Partners | Processor of value-added meats |
| Levine Leichtman Capital Partners | Frozen dessert manufacturer |
| Madison Dearborn Partners | Burger King, Inc. |
| Thomas Weisel Partners | New World Restaurant Group |
| Three Cities Research | Casual dining chain |
| ValueAct Capital | Southwest restaurant chain |