A well-established catering company in eastern Pennsylvania contacted Ground Floor Partners to conduct a feasibility study for a large restaurant and bar they had been planning. The restaurant and bar were going to be housed in an old building in an historic district undergoing extensive revitalization. However, when renovation began, the project experienced significant cost overruns due to unexpected problems. The catering company wanted to decide if they should continue with the project despite the cost overruns, or take their losses and shut the project down?
Results:
Ground Floor Partners looked at the project from a number of angles, including the detailed plans for the restaurant and bar, the local and regional demographics, traffic patterns, local competition, and projected financials. Our conclusion was that although the investors had definitely experienced a major setback, the long term opportunity was so great that we believed it would be a mistake to shut down the project. The investors agreed and are proceeding with the development.