Insights and Strategic Planning The nature of the Hospitality industry is cyclical on a short (annual) and long term (industry) basis. It presents the main challenge to all Hospitality operators. Driven by seasons and events, from the 2008 Financial crash to Brexit and Covid, strategic planning and adapting is an ongoing process. As part of Moore’s holistic offering developing insight is the first step to managing uncertainty and cycles. Understanding and assessing the structural, management and financial aspects of hotels, bars and restaurants help set a knowledge base. From here establishing insights into strengths and the challenges facing it are documented. Our purpose is to help you plan effectively for the recovery period post COVID-19. We focus on the whole business and specifically on the financial requirements or issues facing the business to provide tailored solutions. We advise on the finance function where necessary. Our approach always has a ‘banking’ focus – taking the perspective of a prospective funder or creditor. This approach will suit all plans whether it is a growth and acquisition focus, a refinance, or a restructure. What we do Our approach is to initially carry out a viability review and gather insights on your business from which we can provide further advices: Market: Examine current market, and competitor conditions Operations: Examine current management and operations structures Finance: Assess liquidity and Balance sheet Review performance; Review current financing arrangements and bank covenants; Review legacy creditor and bank debt; Review working capital management; Assess current assets and balance sheet; Review KPIs of the business Insights: Present key insights Options: Examine options relating to e.g. trade, acquisition, expansion, restructure and/or agree plans to meet challenges in these in the short and medium term horizons Forward Plan: Provide realistic financial projections commensurate with these plans and horizons. Steps to delivery: Develop step plans to achieve these aims. Examples We have recently carried out several assignments involving a number of hotels and bars of varying sizes. We did a full financial assessment on a hotel group with a view to writing providing key information in a report for their bank which ultimately resulted in important funding being made available. In 2020 we were Government appointed business mentors to a number of bars, restaurants and other hospitality groups. We brought our knowledge of margins, general costs and industry standard staff ratios to examine their efficiencies. We assessed where savings could be made and suggested changes in models to achieve higher margin and profitability. We also integrated the expertise of our wider team to ensure the correct subsidies were claimed and redundancy costs minimised. We brought this together into a forward looking business plan. This accompanied with carefully devised financial projections to show the potential profitability in the medium term was used to seek creditor forbearance and new finance to aid required investment. We have worked with two bar groups to bring down their key costs through vertical integrations. We did this by devising a step plan to replace product outsourcing with in house production and services, whilst minimising the equity investment required by the group. We have worked with companies expanding their offering by seeking to bring new concepts to market. We developed a strong business plan and associated materials to demonstrate potential of the new business for the purposes of raising finance. We did a full viability analysis on a bar group as part of the FBD COVID 19 insurance claim which resulted in key insights for the group to take on board as regards their costs and profitability. Client Testimonial Among the feedback was Cork County Council whose comments on our work was as follows: “This is by far the most comprehensive and most considered report I’ve received in relation to any of our business clients to date, and the LEO got excellent value for money on the client’s behalf.”