Background
Allister Restaurant, envisioned to be a neighborhood gastronomic haven in the heart of Mercer Island, was taking shape under Sara and Ian McAllister’s passionate stewardship. While the design and construction were in full swing, they faced a critical challenge – working through the economics of the lease. Utilizing our feasibility study, the McAllister’s aimed to navigate this hurdle and solidify the restaurant’s financial groundwork.
The Challenge
Beyond the aesthetics and ambiance, for Allister Restaurant to thrive, its financial foundation needed to be robust and sustainable. Sara and Ian recognized the significance of a sound lease agreement, and thus sought our expertise for comprehensive financial guidance.
The Solution
1. Initial Consultation:
We began with a detailed consultation with the McAllister’s, dissecting the crucial economic factors influencing their restaurant. From potential guest volume and spending to seating capacity, Cost of Goods Sold (COGS), monthly sales forecasts, and overheads, we gathered a 360-degree view. This groundwork was especially vital for addressing the complexities surrounding the lease agreement.
2. Financial Model:
Drawing from our initial discussions, we developed a bespoke financial model for Allister Restaurant. In our subsequent session with Sara and Ian, we delved into this model’s intricacies, especially focusing on the lease economics, and fine-tuned it to align with their aspirations.
3. Restaurant Pro-Forma:
To facilitate day-to-day financial navigation, we introduced the McAllisters to our custom Restaurant Pro-Forma template. This empowered them to steer clear of potential pitfalls and make informed decisions, crucial for the lease negotiations and the eventual sustainable growth of their enterprise.
Results
Equipped with our comprehensive financial insights and the feasibility study’s findings, Sara and Ian successfully navigated the lease negotiations. Their understanding of the lease’s economics, backed by our expertise, ensured a mutually beneficial agreement. With the lease in place, Allister Restaurant transitioned from the planning phase to an exciting reality, as design and construction commenced with renewed vigor.
Conclusion
Allister Restaurant’s journey from a conceptual dream to the cusp of its grand opening showcased the power of informed financial planning. With Sara and Ian McAllister’s vision and our financial expertise, the restaurant was poised not only for culinary acclaim but also for long-term success and stability.
