Date: March 9, 2021
The global Covid-19 pandemic has been hard on many businesses, but restaurants and the food service business have likely been hit the hardest. Many business owners continue to struggle, partially because they need help and guidance to access government support programs. But with the right knowledge and savvy financial navigation, one restaurant and catering business was able to keep its head above water and even triple its growth trajectory despite the challenging circumstances.
It’s no secret that the hospitality and food service industries have been particularly challenged during the Covid-19 pandemic. In fact, approximately 17 percent of all U.S.-based restaurants have likely permanently closed since the pandemic’s start.
One sole proprietor restaurant and catering business in Texas was struggling due to COVID-19 shutdowns, barely keeping its head above water. The owner found himself facing layoffs and potential permanent closure if they couldn’t find a way to offset the government shut downs and decreased cash flow.
CP&A has spent a lot of time working to understand how to leverage the Coronavirus Aid, Relief, and Economic Security (CARES) Act for our clients, and we were able to apply for and obtain funding opportunities through both CARES and the Families First Coronavirus Response Act (FFCRA). This included paid leave reimbursements and funding to secure over six figures worth of operating capital to help the owner get through the pandemic.
But we didn’t stop there. We also helped to reimagine and implement new internal service and food offerings that could capitalize on the extenuating circumstances. We also implemented tax-savings strategies that defers the restaurant’s taxes on its profits, giving it a much-needed cash boost in a time of need. This strategic financial leadership and guidance helped Andy’s Kitchen to triple their revenues from the prior year, all while the pandemic ravaged the industry as a whole. By pivoting quickly and knowing when to bring in additional help, Andy’s Kitchen captured a competitive advantage that not only helped him to keep all of his employees working full-time, but he even hired 2 new employees and crushed his projected net incomes in the wake of a global disaster.
As a result of the actions we took, the firm achieved a massive 325 percent revenue growth and a 247 percent growth in net income from the prior year. Today, we continue to provide financial oversight and management of the firms’ entire financial functions to ensure delivery of timely and accurate financials to the business owner with strategic guidance and advice. With the finances taken off his plate, the owner can continue growing and scaling his company without second-guessing himself or worrying how he is going to care for his employees during the pandemic and beyond.
It’s been life-changing to have CP&A in our corner, especially during the pandemic. Not only did they help us manage a very difficult situation, but they’ve put us in a position where we can continue to grow, even though tough economic times. I only wish we had sought out their help even sooner.
- Andy Correa, Owner of Andy’s Kitchen