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Archive for February, 2010

What a nice restaurant, how much is it worth? We all have to judge the situation, whether a restaurant “cool” or not, depending on its location, its atmosphere, the people, the friendliness of the waiters, the wine list and of course, what we eat and what we pay for it. This article addresses a different type of case: What is the value of the restaurant itself? If you believe that property values depend on the brick and recipes, give a call. For those interested in the evaluation of intangible qualities, not just a glance. (The site is in Rome, Italy, but the names and values have been changed.) Introduction and approach EQS equity studio has recently requested a value on one of the most famous restaurants of Rome, Marcello’s Place. It is located in the center of Rome, exactly where you expect it to be. Believe me, is one of the best places to enjoy a dinner or if you can not afford it can have a cappuccino in the coffee lounge. The first aspect of the task when you start defining what is value. We came to the conclusion that Marcello is the value of the sum of three values: a) There is a value corresponding to run their businesses, Marcello’s is holding an administrative authorization. It is naked and worthless goodwill, a conservative first. b) Then, Marcello has a value because it is an enterprise or funds advanced as both a coffee bar and a restaurant. c) Finally, Marcello is appreciated for its famous brand that captures people around the world. We do not give the properties or assets review: You do not need to read here to understand how to calculate them. The value of administrative approval Marcello is present in the center of Rome, Italy. To conduct its activities as a cafe bar and restaurant we need an official permit issued by the Rome Convention of the Council. Marcello has two licenses for the sale of food and beverages, both acquired from the former tenant and approved by local authorities. The first license to sell food and beverages during the second license to sell alcoholic beverages. The value of permits, changes each year based on market conditions. We asked a local company in Rome, specializing in the sale of licenses for the coffee bar we sell a full license for the same quarter in Rome and we asked the price of € 000 120th, which is one of the prizes the highest in town. With this amount, we can now purchase a full license similar to those of Marcello “and use it in places like: we license value Marcello naked without labels or goodwill of € 120. 000. The value of goodwill In the transmission of a commercial license for the vendor and the purchaser transferred the goodwill of the restaurant. There are several aspects that determine the value of the goodwill value: some are related to the location, others are related to the activity, others to the population. The Place. The center of Rome was in the movie “La Dolce Vita” by Federico Fellini was celebrated in 1960. The film introduces the use of the word “paparazzi” and although the film is about the loss of values in an atmosphere of moral impotence is a huge attraction for all places, the crowd was. the center of Rome has lost its appeal as a shopping area in the years 1990 – 2000 but returned to a place full of cafes and shops in the past years. difficult search for a better location in Rome. Activity. Marcello is a place where glamorous, sophisticated, brand new, the high purpose to make more beautiful place. The coffee bar is open all day long, especially for breakfast, but never too crowded. Undoubtedly one of the most successful cafes in Rome. The restaurant is not so well placed. During our visit at noon, we counted the people outside and inside: use a terrible low at noon, the best in the evening. The restaurant seems obviously not the success it could be in an area so famous. People. Franco Rossi, the current owner and director acquired Marcello’s only five years and has an excellent job both in terms of location and income. There are 40 employees and visitors to Marcello impression on the site they are not bad. The level of service standard of Rome is good, but the location of this restaurant may require a higher class is: say it is a bit much sometimes and server customers, because they were friends and could not be what we expect from a 5 – Stars expect (and expensive) place. evaluation benchmarks and results We appreciate the goodwill method Marcello with the market. Therefore, we have the current market prices for coffee shops and restaurants in Rome studied to obtain a reference to be applied taking into account all peculiarities of the target of Marcello. We display analyzed a range of product offers for “Bar” and “Restaurants” in Rome, published in two newspapers and delivered by local agents with whom we spoke, we consulted the official list price of commercial agents and we also have obtained prices from several transactions recently completed. The price range varies depending on location. Taking into account that the sites leading group, we obtained the parameters of the current market, based on: price per seat is available, the price per square meter, the annual turnover excluding VAT prices, price, revenues from VAT excluded high position, pricing, distribution, price and EBITDA. We then applied our sample many times to data Marcello, so that the evaluation of goodwill of € 6.5 million Marcello. In our assessment against the seats available in the price and price / EBITDA multiple for the benefit of being very high, but we see this as added value in a place known throughout the world. Our assessment is based on an autonomous basis and contains the input data, as they were given to us by the customer. In an auction, including the potential value is higher than the buyer could be held in this place, the final price can be substantially different. Nominal prices and PV When considering the value of a coffee bar or restaurant, consider the nominal price of a transaction differs from the actual prices because of the long term to maintain payments. It is common practice in the industry to pay in cash a percentage of about 20% of the agreed price and pay the difference of 80% monthly rate of up to five years. At a WACC of the current value of 7.50% is 86.54% of the nominal value. Applying this rate to Marcello’s, one obtains: 6 €. 500th 000 x 86.54% = 5 €. 625th 100 Mr. Rossi and the value of man We do not know if what Mr. Franco Rossi and his team continue to run Marcello owner should be the place of luck. Although he is an entrepreneur and a manager and he is not a famous chef, we still consider that part of the success of Marcello is based on the people, where he is today. We are therefore, a reduction of 20% on our assessment of what the people there. The value of Marcello brand Subject assessment We now turn to the hard work: what is the value, if any, of a label such as Marcello’s famous? The task of assessing the economic substance is that the buyer use Marcello mark the economic environment in which it operates, and shoot under the jurisdiction of the Italian patent. Test for value outside the context in which Marcello’s mark is used, There are three basic questions for a first assessment of the value of the brand Marcello: 1) The first question is: Marcello mark or trade name is the product or service with which it connected differentiate? Is it quite unique, to differentiate a product / service? In applying this question to Marcello, you may want to consider whether the brand has a call premium to customers Marcello in Rome compared to other coffee bar and restaurants. We do believe is that Marcello is an elite position among coffee bars and restaurants in Rome, but we can not be sure whether the mark Marcello himself and not to its unique location, its sophisticated look and world-class service. 2) The second question is: is there any other may be interested in the acquisition and use of the mark Marcello in a different context? Marcello’s label would allow the success of a second or third store Marcello’s Café is located elsewhere, in Rome or elsewhere outside of Rome? We have our doubts: We do not expect to open a chain of coffee shops Marcello simply on the basis of the label of Marcello. It may also cafes and restaurants of the same name, without also links to the restaurant Marcello’s located in Rome. 3) The third question: Is this third Marcello in Rome to pay a license or use the name of Marcello either to duplicate their products or to extend its brand into other products? We doubt, Marcello’s is not a concept, there is no specific values attached to the name and trademark protection law is weak: we see no possibility of using this brand in other products to pay license fees to the Society of Marcello in Rome. Consequently, there is no evidence of the value of Marcello brand outside of the context in which Marcello brand is currently used in Rome. So let us concentrate on the business, as it is. Test the value in the context in which the mark is used at present The evaluation of a brand is more of the context in which they evaluated and the value of a trade mark under the additional advantage that they can be brought to the buyer on the basis of possible synergies. Marcello filed the trademark “Marcello” in the Chamber of Commerce of Rome. This registration protects against the misuse of the mark in relation to coffee and restaurants of Rome. The ranking system allows safer use of the trademark by the company, but has no value outside of Rome and other products we use. fundamental considerations when applying the usual methods of brand valuation are trademarks of Marcello’s: 1) The cost approach: Marcello’s mark has not been clearly established by the corporation and no apparent cost incurred for the adoption of this label. The competitive advantages of Marcello’s Coffee Bar are very strong to maintain its strong position in conjunction with and we doubt that this would change Marcello a less attractive place in Rome. We therefore consider the replacement value of the label is irrelevant. 2) the income approach: Marcello price is expensive but not more expensive than other bars at the top end and coffee restaurant in Rome. Obviously not, the high price tag. We also doubt that the company can obtain a large flow of royalties on the sale of the use of the label Marcello’s at the coffee bar or restaurant in Rome. 3) The Market Approach: We believe in the restaurants, the value of the label depends largely on the leader and the people do not work in the restaurant of the label is Marcello. If the leader and the people another place to settle in the value added of the label to disappear and the only value of the site. We see no value in the label of the relevant market Marcello, without regard to its people and its location. 4) The relational approach: the problem is when the mark Marcello allows a retention rate of customers and a rate of attraction of a new label over. This aspect would require a detailed analysis of customers. During our visit, we had the impression that customers Marcello by location rather than the label itself attracted. A final important issue in the context of the valuation of brands is the fact that Marcello Marcello own label and not an asset is the brand concept. We can explain this issue with the two extreme comparisons: MacDonald and Harry’s Bar McDonald’s is not a mark naked is a business concept represented by a label. The concept provides for specific procedures, consistency of experience in quality and service mark in the world a strong legal protection, site selection, the marketing approach. Mac Donald is not a label, is a concept. At the other end of the market, we must mention the Harry’s Bar by Arrigo Cipriani, perhaps. Established in Venice, Harry’s Bar is not only because of Hemingway or Bellini (cocktail known to be similar to hundreds of cafes and restaurants like), but because it has developed a concept of first class. The same customer at Harry’s Bar in Venice, New York and elsewhere, with a customer loyalty and retention very high. This is a club everyone wants to join. Marcello is a great place like a bar and an ideal location for a restaurant. However, in applying the methods of good practice is the value of the label at the end we concluded that the value of coffee and the restaurant is mainly based on its location and its people, and no significant additional value to assess directly dependent brand of bare Marcello. Conclusions Marcello is the place, Glamorous, sophisticated, all new, high target, very cool. We calculated the market value of self is based on the value of their administrative license Naked and the coffee value of goodwill and restaurant, while we doubt that the mark Marcello may have value in a different context. As a restaurant is a people business, it is important for assessing the current CEO and his staff must work or not continued, and we took into account that part of the goodwill Marcello simply removed with the manager, but this aspect should be studied further in a real estate transaction. Carbonchi Cesare, President Equity EQS studio in Milan, Italy About the author: Mr. Cesare Carbonchi is a global investment bank with European experience and U.S. player in the top group of institutions and CEO experience in leading companies. Cesare Carbonchi works EQS equity studio in Milan, Italy. About Equity EQS Studio: Studio EQS Equity Corporate Finance is an independent boutique advisory and financial services transaction to provide its corporate customers in respect of its business in Milan, Italy.

To run a successful catering center business, you need a smooth integration of the various processes involved in your business. You need accurate scheduling, good mechanism for managing workflow and especially automated order processing. Electronic Point of Sale EPOS or software is the answer to all these questions is usually the only owner of a restaurant. Restaurant EPOS software became friendly and robust in nature. In recent years, applications software EPOS Restaurant have developed a new dimension. With the evolution of business concepts is the need today, such a solution, the incomparable combination of features provides easy implementation and customization options to the application. There are many important functions in the software EPOS research. More importantly, if the software with the ability to run detailed reports (queries) at any time be safe. This allows you to make conscious decisions. It should provide staff with reports such as sales (eg, finding the best performer), time and location details (who is selling best and when). informed decisions can be made from this information and the management can plan and develop strategies for the company’s discretion. A restaurant EPOS software consists of several different attributes, such as business intelligence, etc. good EPOS software will not allow your employees to make mistakes and promptly made the flag wrong and potentially dangerous mistakes made by them. A software application such as EPOS POSqx safely and no tolerance for illegal trade, deletions or rebates. It makes companies lose access appropriate information available only. Potentially the most important characteristic of a good software EPOS is the backup schedule adjusted online. The latest advances in application development EPOS produced a new generation of restaurant POS software with a variety of duties great benefits to owning a restaurant. These include management of staff time to help you track your expenses is just the head and the actual generated from your business. In addition, you can manage your priorities and bestsellers other menu items, your bar, kitchen and cash outflow, and detailed reports for your fine dining or casual arrangements and so on.

Commercial Properties is a property that will generate in the position, additional revenue for owners. To put it in commercial real estate generally includes office buildings, apartments, real estate, commodities and the landowner. All types of properties, which drew in a position to generate revenue for owners of commercial property. Commercial Property does not include those who are living as apartments or houses. In the last decade has seen many people who were in their country or are considered commercial investments have been made. People are generating huge revenues of the commercial real estate. There are certain principles of commercial properties. The owner of the building, following the real estate agent and promoter, the same principles. Agents property used for commercial purposes to help provide the best properties to a potential buyer. They also offer the best deals so that the buyer can buy at home and in the process can increase their profits. Agents are useful for commercial property tenants and buyers. The best shopping area should be selected according to their needs. The choice of property in the best places to help the future growth and development of commercial properties. The benefits of a good are enormous as the number of visitors and the purchase of commercial presence, which is high. It must be chosen in such places for greater efficiency. The best places are to choose a commercial property near areas with heavy traffic such as train or bus station. This land could be used for restaurants, shops or hotels. The best way is to generate high returns by investing in such property. It is important to remember that investment at the right time, right place and is the best way to profit more and more. The best way to find a real field for commercial, consulting financial advisor. Even if you invest a small business in Commercial Real Estate is a good way, as a society can be increased by the purchase of such property in a convenient location. In the case of persons with large local commercial businesses, real estate and the best option is to develop business and generate more sales. However, it is important to remember that there are several providers of commercial real estate. Thus, the reputation of the supplier concerned should be reviewed thoroughly. In addition, there are several conditions and interest rates, before signing an agreement should be reviewed to get the best deal. There are several sites that offer the best deals to be in such company. So the best way to get the best prices through online research, he will find much information on agents and financial institutions, the quotations of its properties. By using the online installation, you can save time and money to the knowledge of different games. can be done outside of these benefits compare the services provided.