The Evolution Of Will Restaurant Investment Group: A Culinary Journey

Will Restaurant Investment Group is a premier restaurant management company that was established in 2010. The group focuses on acquiring and reviving local restaurant concepts, which has led to the ownership and operation of brands like Central City Tavern, The Tavern House, The Derby Sports Bar, and Cantina Loca. The group was founded by Brian Will, who has spoken publicly about the impact of inflation on the restaurant industry. Will Restaurant Investment Group aims to grow its restaurant concepts in newly developed, local downtown communities in Alpharetta, Buford, and Sugar Hill.

Will Restaurants Investment Group's founder and CEO, Brian Will

Will Restaurants Investment Group founder and CEO, Brian Will, has extensive experience in the bar and restaurant industry. After spending a decade in the industry, Will decided to shift his focus to developing his own restaurant concepts. This decision led to the establishment of the Will Restaurants Investment Group in 2010. The group is a premier restaurant management company that aims to acquire and revitalise local concepts, with a particular interest in newly developed, local downtown communities.

Under Will's leadership, the group has successfully owned and operated multiple brands, including Central City Tavern, The Tavern House, The Derby Sports Bar, and Cantina Loca. With a strong vision and no plans of slowing down, the group continues to expand and explore new opportunities.

In a 2024 interview with Fox Business, Will discussed the impact of inflation on his businesses. He highlighted the challenges of rising costs and how they have affected the pricing of menu items. For example, the wholesale cost of a BLT sandwich is $5, but with operational expenses included, the selling price has increased to $15.99. Will also shared his monthly expenses, including rent, utilities, labour, and food costs, providing insight into the financial challenges faced by restaurant owners.

Will's appearance on "Varney & Co." shed light on the economic challenges faced by restaurants, particularly in the post-COVID era. He emphasised the contrast between the fixed increases in his lease agreements and the fluctuating economic landscape, which has included rising labour, insurance, and rent costs. Will's honest account of his struggles with inflation offers valuable insight into the complex financial realities of the restaurant industry.

Restaurant management

Will Restaurant Investment Group is a premier restaurant management company that was established in 2010. The group focuses on acquiring and developing local restaurant concepts, particularly in downtown communities in Alpharetta, Buford, and Sugar Hill. Their portfolio includes brands like Central City Tavern, The Tavern House, The Derby Sports Bar, and Cantina Loca.

Effective restaurant management is essential for the success of any restaurant business. It involves various aspects, from team-building and employee satisfaction to operational efficiency and customer experience.

Team-building and company trips are vital for fostering a positive work culture and employee satisfaction. This is reflected in Will Restaurant Investment Group's emphasis on quarterly team-building events and company trips, understanding that a happy and cohesive team is essential for the success of their restaurants.

Operational efficiency is another critical aspect of restaurant management. This includes optimizing labor costs, improving quality and productivity, and enhancing the customer experience through technology. For instance, technology investments can streamline operations, reduce friction and redundancies, and enable staff to perform at their peak levels.

Lastly, restaurant management requires putting the guest and employee experience first. This can be achieved through investments in convenience engineering, satisfaction and sentiment measurement, and loyalty and retention programs. By prioritizing the people at the heart of the restaurant—both guests and employees—management can create a positive and engaging environment that fosters success.

Restaurant acquisition and ownership

Restaurant mergers and acquisitions are having a significant impact on the global foodservice industry. Big companies are expanding their reach by consolidating chains across categories, cuisines, and technologies. This trend is driven by various economic factors, including liquidity crises, emerging brands and markets, and technological advancements. The availability of capital and the potential for high valuations make the restaurant space attractive to investors.

The process of restaurant acquisition involves due diligence, valuation, and integration. Due diligence entails a comprehensive analysis of legal, financial, operational, and commercial aspects. Valuation methods consider cost, market, and discounted cash flow approaches to determine a fair price. Post-acquisition integration is crucial for optimizing operations and enhancing enterprise value.

The benefits of restaurant acquisitions include dramatic top-line growth, expansion of market share, entry into new markets, integration of innovative products and technologies, and enhancement of brand value. Acquiring distressed assets or investing in high-growth chains can provide opportunities for optimization and market dominance.

Restaurant ownership brings with it the responsibility of managing operations, marketing, finance, and human resources. Owners must continuously adapt to evolving consumer behaviors, technological advancements, and competitive dynamics. They play a crucial role in shaping the guest experience, driving growth, and maximizing returns for investors.

In conclusion, restaurant acquisition and ownership is a complex and dynamic process that shapes the global foodservice industry. Will Restaurant Investment Group has successfully navigated this landscape, acquiring and operating multiple brands. By focusing on local communities and integrating acquired concepts into their portfolio, they have positioned themselves for future growth and success.

Restaurant financing and real estate

Will Restaurant Investment Group

The Will Restaurant Investment Group is a premier restaurant management company that owns and operates brands such as Central City Tavern, The Tavern House, The Derby Sports Bar, and Cantina Loca. With over a decade of experience in the bar and restaurant industry, the group has shifted its focus to acquiring and developing new concepts, particularly in the heart of downtown communities in Alpharetta, Buford, and Sugar Hill.

Restaurant Financing Options

Financing is a critical aspect of the restaurant business, whether for starting a new venture, expanding existing operations, or renovating a current location. Here are some common financing options available to restaurant owners:

• Traditional "Brick-and-Mortar" Bank Term Loans: These loans are offered by traditional banks and typically involve a lengthy application process, collateral requirements, and compounded interest. The loan repayment terms can be flexible, ranging from 3 to 10 years.
• Alternative Loans: Alternative loans are provided by bank and non-bank lenders, often utilizing more advanced technology to determine eligibility. They offer more flexibility in repayment options and may be more accessible for newer restaurants or those without a strong credit history.
• Small Business Administration (SBA) Loans: SBA loans are backed by the U.S. Small Business Administration and are available for working capital or fixed assets. They usually require significant collateral and have a lengthy application process, but they offer flexible repayment terms and higher funding amounts.
• Merchant Cash Advance: This option provides a lump sum of money upfront in exchange for a percentage of future sales, typically collected through daily deductions. It is suitable for businesses that accept credit or debit card purchases.
• Business Line of Credit: Similar to a credit card, this option provides a line of credit with a spending limit. It offers working capital and flexibility to business owners while helping improve their business credit score.
• Crowdfunding: A trendy option, crowdfunding involves pitching your business idea to the public and offering benefits in return. It provides access to a broad investor base and can generate buzz through social media. However, it may require significant marketing efforts and navigating complex regulations.
• Friends and Family: Borrowing from friends and family can be a reliable and quick way to gain funding without the formalities of a traditional loan. However, it blends personal and professional relationships, which may lead to conflicts or strained ties if not properly managed.
• Commercial Real Estate Loans: With rising real estate costs, these loans can help finance the purchase or renovation of a restaurant location. Lenders focus on the financial health of the restaurant, and the loan terms can significantly impact cash flow and flexibility.
• Equipment Financing: This option provides funding for purchasing or upgrading essential restaurant equipment. The lender may sell the equipment directly or provide funds for the purchase, with repayment made in monthly instalments, potentially with low-interest rates.
• Purchase Order Financing: This short-term financing option helps restaurants fill large orders or restock inventory without paying upfront. It improves cash flow and enables growth but relies on timely customer payments for repayment.

Real Estate Considerations

When it comes to real estate, there are a few key considerations for restaurant owners:

• Location: Selecting the right location is crucial for the success of the restaurant. Factors such as foot traffic, visibility, and proximity to the target customer base should be considered.
• Zoning and Permits: Ensuring that the desired location is properly zoned for a restaurant and obtaining the necessary permits are essential steps in the process.
• Lease or Purchase: The decision to lease or purchase the property depends on various factors, including capital availability and long-term business plans. Leasing may offer more flexibility, while purchasing can provide stability and potential for equity growth.
• Renovations and Construction: Renovating or constructing a restaurant space can be costly. Proper planning and budgeting are necessary to ensure the space meets the required specifications and local regulations.
• Working with Real Estate Agents: Engaging the services of a commercial real estate agent can be beneficial. They can help navigate the market, identify suitable properties, and negotiate favourable lease or purchase terms.

Final Thoughts

The Will Restaurant Investment Group exemplifies the importance of financing and real estate decisions in the restaurant industry. With a clear vision and strategic financing choices, the group has successfully expanded its portfolio. Restaurant owners should carefully evaluate their options, considering traditional loans, alternative funding sources, and the unique aspects of the real estate market, to support their business goals and ensure a sustainable future.

Restaurant investment risks

Investing in the restaurant industry comes with a unique set of risks that potential investors should be aware of. Here are some key points to consider when evaluating the risks associated with investing in restaurants:

High Startup and Operational Costs

Restaurants typically require a significant amount of capital to start and maintain. The average startup cost for a new restaurant is $375,500, and that's before factoring in the cost of rent, insurance, common area maintenance, and taxes, which can amount to a substantial sum, especially in places like New York City. The high costs involved in opening and running a restaurant can put a strain on finances, and if not properly managed, can lead to cash flow issues and even bankruptcy.

Low Profit Margins

The restaurant industry is notorious for its slim profit margins, with the average sitting at around 3% to 11% for full-service restaurants (FSRs). This means that restaurants often have limited financial cushions to fall back on during tough times. As a result, they may struggle to survive unexpected expenses, economic downturns, or periods of slow business. This also means that investors will see a smaller return on their investment.

Fierce Competition

The restaurant industry is highly competitive, with over 1 million foodservice establishments in the US alone. This saturation can make it difficult for a new restaurant to establish itself and attract customers, especially when competing against established brands. The competition also extends to attracting and retaining talented staff, which is crucial for the success of any restaurant.

Impact of Economic Factors

Economic factors such as inflation, changing consumer habits, and shifting trends can significantly affect the performance of restaurants. For example, the recent surge in inflation has impacted the cost of ingredients and supplies, squeezing profit margins even further. Restaurants may also be vulnerable to changes in consumer behaviour, such as a shift towards more health-conscious or plant-based dining options. Keeping up with these changes can be challenging and may require additional investment.

Regulatory and Legal Compliance

Restaurants must also navigate a range of regulatory and legal requirements, including health and safety standards, employment laws, and licensing agreements. Failure to comply with these requirements can result in fines, lawsuits, or even the closure of the business. The regulatory landscape is also subject to change, and restaurants must be agile enough to adapt to new rules and regulations.

Due Diligence

Conducting thorough due diligence is essential before investing in a restaurant. This includes evaluating the business plan, financial projections, occupancy costs, and the projected rate of return. It is crucial to look beyond the romanticized view of the industry and make investment decisions based on robust analysis and a clear understanding of the risks involved. Due diligence should also extend to the operational, commercial, legal, and technological aspects of the business to identify potential risks and areas for improvement.

Frequently asked questions