At J.H. Cohn, we blend our technical expertise with our industry knowledge to assist restaurants, food service companies, and hotels in meeting their financial, operational and reporting objectives. We help our clients address the challenges of developing a competitive advantage and growing profitably.
We offer full audit, tax, and advisory services to franchisees, independent restaurant companies, caterers, and specialty gourmet shops, including emerging concepts. Additionally, we provide large, national chains with effective solutions to their corporate governance, real estate, employee benefits, and tax concerns.
Our value-added insight on operational and management issues covers:
- Cash flow planning and budgeting
- Computerization
- Corporate structuring
- Cost segregation studies
- Incentive plans and employee benefits
- Internal financial controls
- Inventory and purchasing
- Prime costs
- Real estate transactions
- Strategic growth and joint ventures
- Strategic tax planning
Restaurant Industry Snapshot
The restaurant industry is facing many interesting trends, some which are predictable. Since "eating out" is more expensive than preparing food at home, restaurant traffic is typically slower during economic slowdowns. In addition, competition is increasing from supermarkets and convenience stores that are selling more take-out items that can be easily re-heated at home with minimal trouble. These meals are less costly than eating out, but are easier to prepare and taste more like restaurant food than home-cooking.
The profitability of an individual restaurant depends heavily on volume because of high fixed costs. Chains enjoy some economies of scale as they can make bulk purchases and leverage their marketing costs, but smaller restaurants compete by offering superior service and quality.
Trends and Risks
- Baby boomers have high discretionary incomes, and therefore spend more time and money eating in restaurants
- There is an increase in take-out meals
- Casual dining is becoming more popular
- The continued issue of high employee turnover must be addressed in this labor intensive industry
- There is a growth in mega-franchisees, with many restaurant companies owning more than one franchise
- A concern over recycling and other environmental issues affect the disposal of paper products, take-out containers, and used ingredients, such as cooking oil
- Increased litigation is rising over liability for drunk drivers, obesity lawsuits and liability for grease disposal