Search Funds & Acquistions
Hospitality Stability Fund Process™
Industry challenge
UBS predicts that up to one in five restaurants in the US could close permanently because of the corona-virus pandemic. If one in five American restaurants closes, it would result in about 200,000 locations permanently shuttering. UBS analyst Dennis Geiger referenced the National Restaurant Association saying that about 3% of restaurants in the US have already closed permanently. That would mean 30,000 restaurants have already shuttered, based on the NRA's estimate of more than 1 million restaurants in the US. According to Geiger, the carnage is far from over.
The industry employs 15.6 million people in the US, according to the NRA. A JPMorgan Chase Institute analysis of 597,000 small businesses from February to October 2015 found that half of restaurants had a cash buffer large enough to support more than 16 days of business.
With existing brands, market viability, goodwill in a true economic sense, is an undervalued intangible asset intrinsic to a successful and profitable brand. When a brand establishes its economic viability and purpose, then exponentially the brand can grow unless there are forces beyond its control. By correcting for that impediment, the assumption holds that a well placed brand will resume its potential growth trajectory unabated.
business opportunity
In the advent of the pandemic shutdown, a profitable brand that was forced to close, may be closed permanently. This does not reflect the viability of the brand, but instead reflects the consequences of a “one size fits all” government interdiction that was more destructive than competition itself. AnalysisLAB is promoting a Hospitality Stability Fund for select small businesses that meet a certain operating criteria to participate in a joint venture stabilization program. This program reactivates a dormant business back into a profitable brand.
Program purpose
The Hospitality Stability Fund provides the required capital while maintaining the guest experience and the standards of service to reopen, reposition and stabilize a veritable proof of concept back to a financially profitable brand.
Program eligibility
“Any pundit who thinks that they’re going to use a recent history — and by recent history, I mean the last 100 years, including the Depression — as a template for what is going to go on here? They’re kidding themselves.”