Mergers and Acquisition in restaurants- Is a possibility
Coronavirus wave has been felt strongly by almost every industry and like every other thing the devil lies in the details, it is important to revisit the definition of your restaurant. According to a MarketWatch article A British International Law Firm, the HoganLovells (HL) says that “restaurants among others as sectors that would be a fertile ground for mergers and acquisitions.”
Delivery Delivery Delivery!!!
In order to survive your business model now largely should depend upon delivery, most dine-in restaurants don’t have their own delivery system and that is a huge problem at this point. This a time where working together will help everyone, having conversations with other restaurant owners and assisting each other is the key.
- Teaming up with a restaurant as a delivery partner.
- Sharing the kitchen with your partner restaurant reduces the delivery distance hence delivery cost.
- Combining resources to develop a delivery platform.
- Helping each other by sharing relevant data with each other.
Eliminating/Reducing commissions
Aggregators were enjoying a hefty commission even before the coronavirus outbreak. These are large corporations and they would like to use the situation to their advantage, right now the restaurant’s biggest challenge is to stay in business and make at least working cash flows from the business. In the present scenario, restaurants cannot afford to let anyone else take a piece of their pie. If restaurants are to cut these commissions they have to work together and make sure they combine their resources to provide a seamless experience to consumers just like before.
Restaurants belonging to family groups
Such restaurants should try by combining forces to come out with a concept and show the world how it is done. Big restaurants taking the charge and leading with an example will give motivation and a straight well-tested path to smaller restaurants and this can be very good for the industry.
There has always been a reason to believe that in the arms race of doctors and germs, doctors run faster! So putting your trust in doctors for a vaccine is not wrong but these M&A might lead to stronger and reliable partnerships in the restaurant industry.
