Industry Focus: Food & Beverage
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INGREDIENTS MATTER (TM)
We understand that operating a restaurant, franchise or brewery isn’t easy. The key ingredient for your success is to surround your business with advisors who have a depth and breadth of experience. That’s where we come in. Whether you are starting at the drawing board or have an existing business, we’ll leverage our team’s varied experience to help you implement a sound strategy and to guide you through future growth. Some of the services we offer for companies just like yours are: planning and
development, tax services, general accounting, business valuation, consulting, benchmarking, assistance with financing, and overall operations. Check out some of our success stories below and we hope to be an ingredient in your success.
Food & Beverage Production & Distribution
- A craft brewer was starting to grow their sales abroad. The team setup a IC-DISC entity for the client that resulted in an approximately 15.8% tax savings by converting export net income into qualified dividend net income. In addition the IC-DISC entity provides flexibility to the client by allowing for deferral on tax of export net income as a way to cheaply fund working capital versus tapping into traditional loans.
- Having a thorough understanding of MA alcohol excise taxation, the team indicated to a client they were inadvertently paying excise taxes on beer produced at another facility that had ultimate responsibility for paying of MA alcohol tax. A retroactive review of certain sales indicated that approximately $30,000 of excise tax was overpaid and needed to be recouped. The team assisted
and worked with the client in obtaining the refund.
Food & Beverage Franchises
- A family-owned restaurant franchisee needed help improving their profitability and annual cash flow. Using internal industry benchmarking developed from over 30 years of experience in the food and beverage industry the team was able to identify problem areas with labor costs, rent and general and administrative expenses which resulted in saving the client hundreds of
thousands of dollars in the following years.
- A family-owned retail restaurant franchise client needed to refinance its existing debt structure with a local bank. The team helped the business secure a new loan with a better interest rate and better loan terms, which saved the client approximately $200,000 in annual cash flow.
Bars & Restaurants
- A restaurant needed assistance in determining the best location for their new concept. The team was able to work with the client to determine expected revenues and profits at a particular location. Using these figures it was determined that the location under review did not make financial sense based upon the structure of the lease and the set-up of the kitchen and bar. The analysis prevented the client from making a mistake which could have cost hundreds of thousands of dollars over
the life of the lease.
- Edelstein’s valuation department analyzed several restaurant / bar locations owned by a well-known Boston restauranteur. The upscale establishments were valued for litigation purposes working on the side of the restauranteur and his attorneys. To date, no opposing expert has been disclosed as refuting the team’s work.
Contact us to learn more about how we can help you.
Restaurant, Franchises and Distribution
Bob DiBari, firstname.lastname@example.org or 617-478-3482
Bob Babine, email@example.com or 617-478-3478
Jesse Gillett, firstname.lastname@example.org or 617-478-3468