Specialty Capital’s Post

If you're confused about which business classification or tax model is right for your growing retail bakery, we summarized each business type and their advantages and drawbacks to guide your decision.

I observe many newly financed enthusiastic, considering more the assets and less of liabilities are generally better, but on the contrary practical life doesn't work in this manner. Yes upto some extent more the assets is good for the company like if there is an year on year increase in Fixed assets like plant and machinery, it signifies that company is expanding its business, but increase in assets like debtor and inventory is bad for the company, and increase in creditor is good for the company. Debtor: Sold the goods to customer on credit Inventory: Goods unsold by the company. Creditor: Purchased the goods from vendors on credit. Let me clarify with an example. If you go to any restaurant, you need to pay money first and then you will get order, since the restaurant doesn't sell the goods on credit therefore it's debtor is 0, and let's say the restaurant is able to sell or close to sell all his stuff during the end of the day then inventory is also close to 0, this signify the growth potential of the company. High creditors for the company means vendors are crazy working with that restaurant, and restaurants purchase the goods on credit for a long tenure, they are the market leader. So in that case Net working capital for the restaurant is negative which means the restaurant is blocking others money and uses that money to run that restaurant. Net working Capital= Debtors+ Inventory- Creditors. I agree that industry and economic conditions do also play a pivotal role, but my point is to rectify that High Assets and low Liabilities are generally not always a good sign for the company.

🔴 Administrators are seeking to sell Keelham Food Hall in North Yorkshire as a going concern, following its sudden closure at the end of last year. The business has been in our Warning Area since January 2019. (See comments below ⬇) Its latest filing H-Score® in January 2022 was just 7, versus an industry average H-Score® of 64... Lagging significantly. 📉 Keelham Farm Shop had gone from a high turnover (£20.9m), profitable business in 2018, to a much lower turnover (£8.6m), loss-making business during the course of the pandemic. In a statement, the business said it had not "been able to attract enough regular shoppers to cover the ever-increasing fixed overheads of the store and create a viable business moving forward". - - - - - - - - - - - - - - - - - - - - - - - - We assess risk from multiple angles at Company Watch and our scores are never 'black-box'. 💡 Transparency is at the core of everything that we do, so you can be sure you know the reasons why we score companies high or low. 7 key factors are combined to establish our H-Score®: 1. Profitability 2. Liquidity 3. Stock and Debtors 4. Current Assets 5. Equity Base 6. Current Funding 7. Debt Dependency Our H-Score® is relied on by high street banks, global insurers and many household names to manage risk exposure. 💪 📲 Get in touch today to experience the predictive capability of our analytics for yourself: https://lnkd.in/dmE_Rppq #business #administration #duediligence #financialanalysis #riskmanagement https://lnkd.in/ginTqJAe

Tomorrow, SCOTUS hears argument in Bissonnette v. LePage Bakeries Park St., a case brought by Wonder Bread truck drivers which implicates arbitration agreements for certain employees (here, drivers) of national corporations with interstate shipping operations (here, a corporation in the bread business with shipping operations). The case involves the application of a statutory exemption from the FAA for transportation workers. Specifically, the Court takes up the question: To be exempt from the Federal Arbitration Act, must a class of workers that is actively engaged in interstate transportation also be employed by a company in the transportation industry? https://lnkd.in/gxw9eY2T

Key to continuously calculate the full cost of package elements in customer relationships, and exercise the ‘walkaway’ option when preordainedvlimits are breached..and if enough suppliers do so…

Poor business planning, or CHAPTER 11 plan? If you have not eaten their LOBSTER, you are missing a GOOD meal. They may want to hone in on what they are known for, LOBSTER. Maybe consider providing 1 to 2sides with a LOBSTER meal, that are enticing yet cost effective alternatives . Just saying… #lobster #redlobster

I keep hearing people say and reading that what killed Red Lobster was the unlimited Shrimp. Not true... Typically, when a private-equity firm takes over a company, it finances the acquisition by loading the company down with debt, which makes the deal cheaper for the PE firm but also makes it harder for the company to thrive. While Golden Gate Capital did add debt to Red Lobster’s balance sheet, it also made another move, selling off Red Lobster’s real-estate assets for $1.5 billion, forcing Red Lobster to lease those locations back. I won't even bother you with how The Thai group (a seafood distributor), who bought Red Lobster from Golden Gate, continued to make things a mess https://lnkd.in/efQMBrzE ____________________ #realestate #commercialrealestate #cre #retail #industrial #multifamily #office #1031exchange #investing #dst #realestateinvesting #realestateinvestor #palmbeachcounty #southflorida #soflo #southfloridarealestate #commercialconstruction @expcommercialfl @exp.commercial

Restaurant prices are up more than 4% over the last year thanks to continued inflationary pressures, and the ripple effects across the industry are evident. Case in point: @RedLobster's preparation for Chapter 11 bankruptcy protection. This comes after last year’s attempt to address tighter dining budgets and draw in more customers with a new “all-you-can-eat” shrimp deal. It was so popular, it cost the restaurant $11 million in losses in just one quarter. And that’s just one example — so many restaurants are struggling in this economic environment. Traffic is down and margins tighter than ever… leading many brands, like Red Lobster, to turn to value menus and other promotions that don’t always pay off. The question is not about whether or not to find ways to provide diners with more value – that’s always a good idea. The question is about *how* to provide that value. There’s an inherent challenge in a one-size-fits-all discounting strategy: it’s actually cannibalizing your expected profit if it’s not driving incremental traffic. In other words, unnecessarily discounting items for diners who would have visited without the perk is bad for business). That leaves stores in an even tougher financial position. That’s why I’ll keep talking about personalized, 1-to-1 incentives that adjust based on diner needs and available margin. When customers get just the right promotion to behave differently, restaurants preserve their margin and see more foot traffic — driving more *profitable* dollars. https://lnkd.in/e8yFM5MB   #hospitality #inflation #profitability #redlobster #redlobsterbankruptcy

California's increase of the minimum wage to $20/hr is ground-breaking. But It could reshape the dynamics for quick-serve restaurants. Their response could be critical in driving growth. My colleagues, shared their insights and predictions in the latest QSR Magazine article. You can find our full analysis here 👉 skp.link/lys #SimonKucher #FastFood #Pricing #QSR

𝘿𝙞𝙙 𝙮𝙤𝙪 𝙠𝙣𝙤𝙬 𝙩𝙝𝙖𝙩 𝙬𝙝𝙚𝙣 𝙢𝙖𝙞𝙣𝙩𝙚𝙣𝙖𝙣𝙘𝙚 𝙞𝙨 𝙞𝙜𝙣𝙤𝙧𝙚𝙙, 𝙢𝙤𝙣𝙚𝙮 𝙞𝙨 𝙬𝙖𝙨𝙩𝙚𝙙 𝙖𝙣𝙙 𝙥𝙤𝙨𝙨𝙞𝙗𝙡𝙮 𝙥𝙧𝙤𝙙𝙪𝙘𝙩? Your Refrigeration equipment plays a key part in running an establishment like a restaurant. And, it often presents some of the highest upfront costs to starting a business, refrigerators and freezers are essential for day-to-day operations. Despite their high importance and costs, most businesses neglect this equipment after it is purchased. This lack of proper maintenance is costing business owners with commercial refrigeration a lot of wasted money. Plus, poorly maintained equipment risks negative impacts on customers, employees, and the environment. Independent restaurants and even, Franchisees are under increasing financial pressure. Just reading the latest news, we are seeing companies such as RBI and others filing for Chapter 11. Between July 2021 and July 2022, revenues grew by 87%, yet small businesses’ profits actually dropped by 4%. Many businesses are operating on razor thin margins and constantly looking for ways to cut operating costs to help their bottom line. Often times, unless there is a code violation or similar driving factor, many business owners will wait for equipment to break before replacing or repairing it. Yet, by doing this to try and save money, they actually end up spending more in the long run and often impact business operations as well as customer and employee satisfaction. For more information on how we can help, visit our website at https://lnkd.in/dgTewYQ