Discuss the main aspects to consider in respect of the investment in either one of the restaurants. The main aspects consists of:• Costs of acquisition • A synergy• Defining roles• Goals• Proactive planning• Choosing a company • Competition Traditional Home-Style Restaurant (THSR)THSR currently has two restaurants in the Klang Valley catering for the localChinese and Indian vegetarian population. Besides catering for in-housecustomers, THSR also does catering services for functions and events. Itscatering services caters for both small and large functions, with ordersfor 50 to 1,000 pax. While the restaurant has become a household nameamongst vegetarians, it is becoming challenging for the owner, Ryden, tosustain the quality of the food. This is mainly because of the high turnoverof the kitchen staff (chefs) at THSR. Consequently, the quality of the foodhas not been consistent, resulting in declining sales.THSR has an effective front desk team who are courteous and provideefficient service. Nevertheless, the customer numbers have been fallingin the past year. The average sales per day has fallen from RM2,000 toRM1,200. All in-house sales are on cash only basis. However, from hisevent catering services he collects a deposit and the balance is collectedwithin five working days. Ryden is concerned and worried about futurecommitments and the financial challenges of continuing the restaurantbusiness. He is, however, not ready to close down the restaurants. Rydenis keen to sell 50% of his share interest in THSR.Ryden has valued his current business at RM150,000. However,Sandhya feels that the business is overvalued. Moreover, she is unsurewhether to acquire one of Ryden's restaurants or to consider a strategicalliance with THSR.Scanned with CamScannerCase 19 Business Growth Strategies at SM Holistic Living AcademyVillage FusionVillage Fusion is a relatively small semi-fine-dining restaurant located inthe Klang Valley. The business is doing very well and on average the dailyturnover is around RM3,000. This restaurant caters food to a number of otficeslocated around the restaurant. However, this service only operates for 25working days in a month. The payment for this services is collected from thecompanies at the end of each month. Hence, 20% of monthly sales is on credit.Nathan, the restaurant owner, is getting old and is looking for a partner whowill be able to manage the daily operations of the restaurant. He is keen to goon semi-retirement and wants to sell 50% of his business shares to the rightinvestor. He is very conservative and wants to maintain the natural healthyeating vegetarian concept. Nathan values his current business at RM200,000.Nathan is an experienced accountant and therefore he has operated avery conservative policy in respect of the management of the restaurant'sworking capital and daily operational costs. He ensures that - there isno wastage of food at the end of each working day. He assembles theinformation about the company's forecast end-of-year financial outcomes.These are provided in Appendix 2.

In order to invest for allocation the funds along with an expectation of the positive return or…

Discuss the main aspects to consider in respect of the investment in either one of the restaurants. The main aspects consists of: • Costs of acquisition • A synergy • Defining roles • Goals • Proactive planning • Choosing a company • Competition

Discuss the main aspects to consider in respect of the investment in either one of the restaurants. The main aspects consists of: • Costs of acquisition • A synergy • Defining roles • Goals • Proactive planning • Choosing a company • Competition

College Accounting (Book Only): A Career Approach

13th Edition

ISBN:9781337280570

Author:Scott, Cathy J.

Publisher:Scott, Cathy J.

Chapter1: Asset, Liability, Owner’s Equity, Revenue, And Expense Accounts

Section: Chapter Questions

Problem 1A: Why Does It Matter? MACS CUSTOM CATERING, Eugene, Oregon Macs Custom Catering, an award-winning...

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