News & Insights

Preserving Value Through COVID-19: Restaurant Industry

November 17, 2020

The Restaurant Industry has been disproportionately impacted by the COVID-19 pandemic, creating significant liquidity constraints and operational uncertainty. Management teams are forced to continually amend their operating models and navigate mounting debt obligations to remain competitive. Mackinac Partners has leveraged its deep operational and restructuring experience within the restaurant sector to successfully guide companies through this pandemic. Mackinac Partners’ senior leadership drives efficient processes, stabilizing companies and providing stakeholders with a path to recovery. In 2020, Mackinac Partners has successfully led five out-of-court restructurings and two in-court restructurings of national brands. In each case, the combination of our operational and restructuring expertise has been essential to preservation of value.

Mackinac Partners’ experience within the restaurant industry encompasses every aspect of the business. Coupled with the firm’s extensive restructuring and turnaround expertise, our team has been well positioned to assist restaurant companies facing Covid-related, market/concept and business cycle challenges:

  • Understanding of restaurant operations, having advised numerous distressed and challenged clients in various segments of the industry;
  • Collaborating with key constituents to assess the business operations, develop and implement strategic alternatives and manage liquidity to bridge to a transaction/restructuring;
  • Ability to work collaboratively with management to creatively modify the strategy to provide liquidity without jeopardizing long term value; and
  • Long standing relationships with strategic and financial participants in the industry at the senior executive level, thereby creating and facilitating the execution of strategic alternatives.

We provide a broad range of services to franchisors/restaurants, franchisees, lenders and equity stakeholders, including:

  • Interim C-level and executive management positions including CEO, COO, CFO, CRO;
  • Strategic assessments, unit performance assessments, valuations, viability analysis and Business and Turnaround Plan development;
  • Financial and operational restructurings;
  • Turnaround management / Implementation of operating and strategic initiative focused on improved efficiencies, cost reduction, sales and marketing improvement, and EBITDA/profit improvement;
  • Acquisition, disposition and liquidation of assets/under-performing units;
  • Capital advisory services including negotiations of: debt and placement, amendments and covenants and management of stakeholder interests;
  • Supply Chain reengineering, operations management and supplier/vendor/lease negotiations.

To learn more, please Contact Us here.


2020 Notable Engagements:

Board Roles: