Food Service Company Requiring Opportunity Analysis
With three successful restaurant locations in operation, the principals were considering opening two more locations in adjacent towns. In conversations with the owners and management team it was revealed two of the barriers to opening these location were the lack of trained staff and borrowing power for this growing company.
Upon a thorough investigation, Rento Associates and the owners decided a catering service targeted on the local corporate campuses had a better short term ROI than opening additional restaurant location.
Using the synergy of two different businesses and the underutilized capital and kitchen space provided the opportunity for a low investment, quick market entry and high ROI. The new venture is currently 13% of total corporate sales and shows much higher margins than industry averages as a result of utilizing existing capital and human resources.
