Excerpt from article by Benjamin Glick in Middle Market Growth April 14th, 2021:
Few businesses were hit harder by the COVID-19 pandemic than restaurants. According to a year-end report from the National Restaurant Association, the COVID-19 pandemic caused restaurant sales volume to drop $240 billion. More than 110,000 food and drink sellers closed temporarily or for good, and 8 million workers were furloughed or let go in 2020.
According to Toby Warticovschi, a partner at St. Louis-based PE firm Millstone Capital Advisors, the overarching theme of its portfolio companies last year was adaptability.
Millstone is heavily invested in the food industry with its Lion’s Choice and Native Foods chain of restaurants. Both brands continue to face supply chain and labor challenges, Warticovschi says.
“These challenges are likely to be with us for some time,” he says.
But the firm’s management teams continue to adapt to evolving market conditions. For example, the companies adopted more efficient labor models and contactless payment systems.
As a result, Millstone’s businesses are ready for the influx of patrons when the pandemic ends, according to Warticovschi.
“I believe the restaurant industry should see a boom over the next 12 months,” he says. “After all, eating is a social activity, and I believe a meal is always better when shared around a table with family and friends.”
For the complete article, please visit: https://middlemarketgrowth.org/investors-see-rebound-one-year-into-pandemic/
