Industry Data Report - Restaurant Research
Building Bridges between Franchisees, Franchisors & FinanciersIndustry Data ReportFinance & Valuations – 2021linTable of Contentse RR’s Finance & Valuation report is based on survey responses (equally weighted) from 50 finance companiesincluding traditional cash flow lenders, sale leaseback companies, SBA lenders and equipment finance companies. Report highlights: (1) 2020 traditional restaurant financing volume of 7.9 billion represented a -24% y/y decrease,reflecting diminished financing demand driven by government COVID-19 restrictions; (2) 61% of financiers expectto increase 2021 originations resulting in an expected 1.5 billion ( 18% y/y) increase to 9.3 billion; (3) 2020 loanportfolio balance decreased by -5.0% to 55.7 billion as lower net new originations were not enough to off-setprincipal repayments; (4) loan portfolio default rates depend on FSR exposure which fortunately is limited; (5)leverage underwriting ratios have tightened considerably - especially for FSR; (6) 2H:20 valuation survey resultsindicate a broad-based improvement in franchisee EBITDA multiples; (7) the 2H:20 public restaurant companyvaluation multiple doubled on a strong rebound in stock prices in anticipation of normalizing EBITDA levels; (8)cap rates for single-tenant net-leased restaurant properties increased slightly for QSR and held steady for FSR onlimited transaction volume.PagetO2H:20 Valuation UpdateEBITDA Multiples by ChainFactors Impacting ValuationsPublic Company ValuationsReal Estate Cap RatesValuation Methodologyor epRestaurant Finance OverviewOrigination Volume & Portfolio SizeEstimated Franchisee Financing NeedsKey RatesEquity RequirementsLeverage RatiosLoan & Amortization TermsSBA Lending DataPaycheck Protection ProgramFranchisor Royalty SecuritizationsR utFinancing23-45-67891011 – 121314ValuationsSurvey Participants & Contact Listing Survey Participants & Roster Changes Key Finance & Valuation Contacts15 - 16171819 - 2021222324 - 25Copyright: This Restaurant Research LLC document is copyrighted material. Due to the No Electronic Theft (NET) Act of 1997, electronic forwarding orother forms of redistribution, without the express permission of Restaurant Research LLC, are violations of law and could be subject to fines of up to 250,000and up to five years of imprisonment, even when no financial gain or commercial advantage accrues to the forwarder/re-distributor. Copyright 2021Restaurant Research LLC. All rights reserved.
Data, Analysis & Insight for a Stronger IndustryReportOutlineBuilding Bridges between Franchisees, Franchisors & FinanciersIDR: Finance & ValuationsSource: RR EstimatesPage 2
Data, Analysis & Insight for a Stronger IndustryBuilding Bridges between Franchisees, Franchisors & FinanciersOrigination Volumes & Portfolio Size1 line ReportOut 1Portfolio size reflects originations – loan amortization – loan payoffs.IDR: Finance & ValuationsSource: RR EstimatesPage 3
Data, Analysis & Insight for a Stronger IndustryReportOutlineBuilding Bridges between Franchisees, Franchisors & FinanciersIDR: Finance & ValuationsSource: RR EstimatesPage 4
Data, Analysis & Insight for a Stronger IndustryBuilding Bridges between Franchisees, Franchisors & FinanciersEstimated Annual Franchisee Financing Needs ReportOutline IDR: Finance & ValuationsSource: RR EstimatesPage 5
Data, Analysis & Insight for a Stronger IndustryReportOutlineBuilding Bridges between Franchisees, Franchisors & FinanciersIDR: Finance & ValuationsSource: RR EstimatesPage 6
Data, Analysis & Insight for a Stronger IndustryBuilding Bridges between Franchisees, Franchisors & FinanciersKey Rates ReportOutline IDR: Finance & ValuationsSource: RR EstimatesPage 7
Data, Analysis & Insight for a Stronger IndustryBuilding Bridges between Franchisees, Franchisors & FinanciersEquity Requirements ReportOutline IDR: Finance & ValuationsSource: RR EstimatesPage 8
Data, Analysis & Insight for a Stronger IndustryBuilding Bridges between Franchisees, Franchisors & FinanciersLeverage Underwriting RatiosReportOutline Range in 2021 Underwriting RatiosQSRLowHighLowFSRHighFunded Debt/EBITDATotal Debt/EBITDAFCCR (Pre-Distribution)FCCR (Post Distribution)Debt Leases/EBITDARLoan to ValueIDR: Finance & ValuationsSource: RR EstimatesPage 9
Data, Analysis & Insight for a Stronger IndustryBuilding Bridges between Franchisees, Franchisors & FinanciersLoan & Amortization Terms ReportOutline IDR: Finance & ValuationsSource: RR EstimatesPage 10
Data, Analysis & Insight for a Stronger IndustryBuilding Bridges between Franchisees, Franchisors & FinanciersSBA 1B Chain Lending Data ReportOutline SBA Lending Program terestRateMaximum TermsEquity & Collateral504IDR: Finance & ValuationsSource: RR EstimatesPage 11
Data, Analysis & Insight for a Stronger IndustryReportOutlineBuilding Bridges between Franchisees, Franchisors & FinanciersContact Restaurant Research to Purchase Complete 1B Chain SBA 10 -year Data SetIDR: Finance & ValuationsSource: RR EstimatesPage 12
Data, Analysis & Insight for a Stronger IndustryBuilding Bridges between Franchisees, Franchisors & FinanciersPaycheck Protection Program Loans - 1B Chain Summary ReportOutline IDR: Finance & ValuationsSource: RR EstimatesPage 13
Data, Analysis & Insight for a Stronger IndustryBuilding Bridges between Franchisees, Franchisors & FinanciersFranchisor Royalty Securitizations ReportOutline IDR: Finance & ValuationsSource: RR EstimatesPage 14
Data, Analysis & Insight for a Stronger IndustryBuilding Bridges between Franchisees, Franchisors & FinanciersEstimated Franchisee Unit Level Valuations RR’s franchisee unit level business valuations (post G&A EBITDA multiple) are based on estimates providedby 8 leading appraisal firms (responsible for approximately 1,600 store valuations over the last 6 monthsacross 45 national chains). Multiples are generally indicative of deal sizes below 500k in EBITDAand/or 5 units. ReportOutline IDR: Finance & ValuationsSource: RR EstimatesPage 15
Data, Analysis & Insight for a Stronger IndustryReportOutlineBuilding Bridges between Franchisees, Franchisors & FinanciersIDR: Finance & ValuationsSource: RR EstimatesPage 16
Data, Analysis & Insight for a Stronger IndustryReportOutlineBuilding Bridges between Franchisees, Franchisors & FinanciersIDR: Finance & ValuationsSource: RR EstimatesPage 17
Data, Analysis & Insight for a Stronger IndustryBuilding Bridges between Franchisees, Franchisors & FinancierseSource: Restaurant Research LLC December 2020 Valuation Surveyut tO FirmAdvanced Restaurant Sales, LLCAuspex CapitalFranBizNetworkMain Street Florida Realty, Inc.National Franchise SalesNewmark Valuation & AdvisoryPraetorian GroupTrinity Capital LLCIDR: Finance & Valuationsep or RAvailability ofCapitalFinancingTermsUnit LevelEconomicsAvailability ofUnits for SalelinSummary of Valuation CommentsSurvey Participant Contact InformationContactMain NumberSource: RR EstimatesEmailPage 18
Data, Analysis & Insight for a Stronger IndustryBuilding Bridges between Franchisees, Franchisors & FinanciersPublic Company Valuations (EV/EBITDA) ReportOutline IDR: Finance & ValuationsSource: RR EstimatesPage 19
Data, Analysis & Insight for a Stronger IndustryReportOutlineBuilding Bridges between Franchisees, Franchisors & FinanciersIDR: Finance & ValuationsSource: RR EstimatesPage 20
Data, Analysis & Insight for a Stronger IndustryBuilding Bridges between Franchisees, Franchisors & FinanciersMarcus & Millichap Real Estate Cap Rates line ReportOut About the Contributing Firm: Marcus & Millichap which specializes in representing institutional andprivate companies in the disposition of multi-tenant and single tenant retail properties.IDR: Finance & ValuationsSource: RR EstimatesPage 21
Data, Analysis & Insight for a Stronger IndustryBuilding Bridges between Franchisees, Franchisors & FinanciersValuation Methodology line(1) Business Value is determined by using an appropriate multiple of adjusted EBITDA.ReportOutSome typical EBITDA adjustments include:(2) Real Estate Value (land and building) is determined by:-Example - Fee Restaurant PropertyBusiness ValueReal Estate ValueSalesAdjusted EBITDARImplied RentAdjusted EBITDAMultipleBusiness ValueIDR: Finance & Valuations 1,000,000 180,000 75,000 105,0005.00 525,000Implied Rent/salesImplied Rental IncomeCap RateReal Estate Value7.5% 75,0006.00% 1,250,000Total Value 1,775,000Source: RR EstimatesPage 22
Data, Analysis & Insight for a Stronger IndustryReportOutlineBuilding Bridges between Franchisees, Franchisors & FinanciersIndustry Player Roster ChangesNew Entrants IDR: Finance & ValuationsExits Source: RR EstimatesPage 23
Restaurant Research Franchise Finance Contacts - 2021Industries ServedCompanyContactPhone #Type of FinancingRegional FocusRestaurantC&G Other RetailRealEstateEquipmentFinance CompaniesAtlantic Capital BankAuxilior CapitalPartners, Inc.Bank of AmericaBBVA USABMO Harris BankFranchise FinanceBOK FinancialBremer BankBridge FundingGroup, Inc.Cadence BankManufacturers BankMidCap FinancialMUFG Union BankNorthern Bank &Trust Co.Pacific Premier BankFranchise CapitalPeople's United BankPinnacle CommercialCapitalSignature FinancialSterling NationalBankStonebriarCommercial FinanceTCF BanklinuttOorepRCitizens BankRestaurant FinanceCity National BankCustomersCommercial Finance,LLCFifth Third BankFirst Fidelity BankFirst FranchiseCapitalFirst Horizon Bank,Restaurant FinanceFlagstar BankGulf Coast Restaurantand FranchiseFinanceHorizon BankHuntington NationalBankLive Oak BankeCapital OneEnterpriseSBADevelopmentFinancingTypical Deal sizeMinMaxAvgMinimumRequirementsYrs. InUnitsBusiness Owned
Restaurant Research Franchise Finance Contacts - 2021Industries ServedCompanyContactPhone #Type of FinancingRegional FocusRestaurantC&G Other RetailRealEstateEquipmentTD Bank - Restaurant& Franchise FinanceTexas Capital BankThe Northern TrustCompanyVendor AllianceCapital, Inc.Wells Fargo Bank Restaurant FinanceWestern AllianceBankWestern EquipmentFinance, Inc.lineWintrust FranchiseFinanceZions First NationalBankutSale Leaseback CompaniesMarcus & MillichaptOFinancial AdvisorsorAB Advisory &Analytics, LLCPeak FranchiseCapital LLCRPacific ManagementConsulting GroupepC Squared AdvisorsTrinity Capital, adivision of CitizensCapital MarketsValuation Experts/BrokersAdvanced RestaurantSalesAuspex CapitalFranBizNetworkMain Street FloridaRealty, Inc.National FranchiseSalesNewmark KnightFrank Valuation &AdvisoryPraetorian GroupEnterpriseSBADevelopmentFinancingTypical Deal sizeMinMaxAvgMinimumRequirementsYrs. InUnitsBusiness Owned
Visit www.chainrestaurantdata.com or contact us at(203) 829-9005 or info@ChainRestaurantData.com to: Ask us about custom research projects Inquire about RR Thermometer email marketing opportunitiesCopyright: This Restaurant Research LLC document is copyrighted material. Due to the No Electronic Theft (NET) Act of1997, electronic forwarding or other forms of redistribution, without the express permission of Restaurant Research LLC, areviolations of law and could be subject to fines of up to 250,000 and up to five years of imprisonment, even when no financialgain or commercial advantage accrues to the forwarder/re-distributor. Copyright 2021 Restaurant Research LLC. All rightsreserved.Sources: All data represents RR estimates which are derived from various private and public sources.Disclosure: Restaurant Research LLC often sells report subscriptions to concepts under our coverage.Disclaimer of Liability: Although the information in this report has been obtained from sources Restaurant Research LLCbelieves to be reliable, RR does not guarantee its accuracy. The views expressed herein are subject to change without noticeand in no case can be considered as an offer or solicitation with regard to the purchase or sales of any securities. RestaurantResearch’s analyses and opinions are not a guarantee of the future performance of any company or individual franchisee.RR disclaims all liability for any misstatements or omissions that occur in the publication of this report. In making this reportavailable, no client, advisory, fiduciary or professional relationship is implied or established. This report is intended to providean overview of the restaurant industry, but cannot be used as a substitute for independent investigations and sound businessjudgment.
Building Bridges between Franchisees, Franchisors & Financiers Industry Data Report Finance & Valuations - 2021 RR's Finance & Valuation report is based on survey responses (equally weighted) from 50 finance companies including traditional cash flow lenders, sale leaseback companies, SBA lenders and equipment finance companies.
PAGE 5 OF 33 The Market Size (In this section search online for a few statistics that show the industry size.) (Example 1: taken from https://restaurant.org:1 Restaurant Industry Facts at a Glance (always add a source or footnote) 899 billion: Restaurant industry's projected sales in 2020 1 million : Restaurant locations in the United States
RESTAURANT INDUSTRY TRENDS As Synergy celebrates thirty years in restaurant consulting, we want to share our perspective . what we see happening when the clock strikes midnight on New Year's. Menu Development: Driving the Right Value(s) When restaurant sales start to sputter or slide, owners start scrambling for ways to boost sales.
more knowledge on how to start-up a restaurant business. This project focused on restaurant industry analysis, start-up requirements, planning decisions, human resource management and restaurant marketing strategies. A marketing plan has been developed for the purposes of opening Studio Thai in the near future. I iii
the Restaurant Market: An Economic Theoretical Analysis Tin-Chun Lin School of Business and Economics, Indiana University—Northwest, Gary, IN, USA Abstract In this research, we investigated an interesting and important issue: whether restaurant tipping would lead toTheoretical economic efficiency or inefficiency in the restaurant market.
Restaurant Loss Prevention Blueprint 6 Boost Labor Productivity to Control Costs Areas of Importance: Kitchen, Prep Area, Dining Room, Bar, and Point of Sale Much like restaurant food costs, restaurant labor cost is a major operating expense that cannot be pushed to the backburner. Using restaurant data to supplement labor
The new restaurant, like the one it was replacing, was to service." :I ·I "be constructed and operated as a first-class Manhattan Restaurant, with all white tablecloth The Pappas Group invested substantial moneys in the Restaurant and participated in the renovations and other expenses necessary to open the Restaurant. To safeguard this investment,
This restaurant is very busy in the morning and evening after 6 pm because the restaurant is located in a very attractive place, near Godagama expressway interchange. Therefore, the restaurant is always full. Currently customers have to come to the restaurant to reserve a table.
BoatHouse Restaurant Banquet & Conference Information Packet BoatHouse Restaurant 700 Park Avenue Winona Lake, IN 46590 Phone: 574.268.2179 Fax: 574.268.9248 BoatHouse Restaurant Email: banquets@boathouseatwinona.com BoatHouse Restaurant Conference Room Seating Options
