Starting in the 1970s, the management contract approach to operating hotels (covering hotel rooms and hotel restaurants) gained widespread acceptance. Today, few national hotel companies actually own the properties they operate. Although the application of management contracts to restaurants is relatively new, the fundamentals of the relationship are the same.
Under our management contract one of our experienced operators will take over a restaurant or hotel to increase profits and reduce stress on the ownership. Owners that use Big Plate Services management contracts enjoy the benefits of knowing they are no longer responsible for day to day operations, hiring, and staff direction.
Temporary Walk-in/Take Over
Other candidates for using Big Plate Services management contracts are institutional stakeholders who may unintentionally find themselves in possession of a restaurant. Landlords faced with a defaulting tenant may, under certain circumstances, find it beneficial to bring a management company in to keep a restaurant space operating. Many commercial leases allow the landlord to step in and run a business in the event of tenant default (it could raise a host of concept-related intellectual property issues if not addressed specifically). If, for example, other tenants in a shopping center or office complex expect a restaurant nearby, or if foot traffic will be reduced by the absence of a restaurant, the landlord may contract with an outside management company to keep a space operating. They elect to generate some cash flow to replace lost rental income, often while attempting to re-lease the space.
Receivership Management Contract
In the event a restaurant is placed in receivership, it is highly likely that the court-appointed receiver will not have any experience whatsoever in running a restaurant. The receiver is often faced with the task of replacing management (and key employees) that caused problems serious enough to warrant the appointment of a receiver. Outside management companies are perfect for this scenario because they are experienced and have no ties to ownership.
For more information or a free consultation contact: