KROST CPAs & Consultants – RestaurantAccountants.com was recently published in the July 17, 2017 edition of the Los Angeles Business Journal as part of the Food & Beverage Roundtable. The article features our very own Jean Hagan, Principal, and explores a series of timely, industry relevant issues regarding the food and beverage industry.
As a leading expert in the region, Jean has her fingers on the pulse of the Southern California restaurant scene. Jean leads a thoughtful discussion on the industry as it continues to grow and face challenges such as new regulations, keeping up with modern trends, meeting consumer demands for experience-based dining and social responsibility practices, and assessing business valuation.
What are the main challenges and opportunities facing food and beverage companies doing business in California compared to other states?
“The main challenges of restaurants doing business in California are labor costs because of minimum wage increases and over saturation/competition in the market place. The opportunity is that millennials are spending more money on experiences than consumer goods (Harris Group study 2016) and innovative operators that focus on creating a great overall dining experience will flow into a large market of people willing to spend their money. According to the Food Institute’s study (2016), millennials will spend 44% of their food dollars on eating out. Chain restaurants will have to reposition themselves to compete with the unique solo establishments or trendy food trucks that offer these types of experiences and attract these diners. To cover all assessable guests, restaurant operators must position themselves through service concept models that offer guests different options within one operation—quick casual, full-service, take-out, and delivery.”
KROST CPAs & Consultants – RestaurantAccountants.com is a leading provider of restaurant operations services in California including business accounting, restaurant consulting, tax consulting and compliance, financial reporting, and audit and review services.
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Read the full article – 2017 Food and Beverage Industry in Los Angeles: A Roundtable Discussion