As the insolvencies of respected operators like craft breweries Grand Ridge and Black Hops demonstrate, even long-standing enterprises can succumb to the perfect storm of compounding economic pressures.
However, the path navigated by the innovative Okami restaurant group highlights how adaptability, professional support and adherence to core principles can facilitate positive outcomes – even amidst daunting headwinds.
The adaptability imperative
For operators like Okami, a willingness to explore new revenue streams, operational models and technologies has proven vital for weathering pandemic and cost-of-living shocks. Innovations like seamless transitions to delivery/takeout, self-serve ordering efficiencies and kitchen automation enabled the Japanese eatery to enhance output while controlling expenses.
Yet astute business leaders recognise that innovation alone provides no panacea. Okami’s strategic investments into excellence—sourcing premium local ingredients, menu creativity, and culinary training—reinforced its brand reputation and customer value proposition. A downturn presents opportunities to double down on core strengths that resonate with loyal patrons.
Crucially, the group’s proactive adaptations were calculated, rather than reactive patches. That foresight and commitment to a long-term vision proved indispensable.
For hospitality business facing make-or-break scenarios, objectively and strategic planning – not emotionally driven decisions – must steer turnaround effects
Panic frequently self-destructive decisions that haemorrhage remaining
value
This prioritisation of proactive, expert-guided approaches underpinned Okami’s resilience and positioned the chain for future growth opportunities. It’s a philosophy AVA Advisory wholeheartedly endorses when advising clients navigating insolvency risks.
Our role is parsing complex situations with strategic foresight to optimise stakeholder outcomes – not facilitate disorderly collapses. We leverage specialised restructuring tools and hospitality sector acumen to formulate plans that preserve optionality.
For instance, our safe harbour advisory services provide a protective framework for proactive turnaround execution. We advise on measures like cash conservation, operational triage, creditor compromises and asset divestments to stabilise positions. This buys time to evaluate all pathways – from solvent restructures to facilitating value-accretive sales processes.
Too frequently, we witness operators delay intervention until control irretrievably
ceded to receivers and creditors. By this crisis stage, value preservation options are overwhelmingly constratined.
Guiding clients towards “best next steps”
Hospitality operators facing crunch points deserve expert counsel aligning with their circumstances and ambitions. For some, an insolvency event may indeed prove terminal, necessitating liquidation plans that maximise creditor returns while mitigating personal liabilities.
For others, our advisory supports ownership/investor objectives for rehabilitating core operations – mapping strategies like non-core asset sales, capital injections, refinances, and operational repairs to stabilise runways. Should owners seek full exits, we structure competitive sales processes to realise maximum business values.
Crucially, AVA’s independent advisory ensures all stakeholder interests are prioritised. We bring impartial examinations of corporate situations, unencumbered by competing incentives. Business owners receive candid assessments of their realistic pathways forward – optimising possible upsides without masking inconvenient truths.
Through this specialised guidance, even the most troubled hospitality operations facing long odds can navigate decisive turnarounds and achieve the next “best step” outcome. Whether facilitating ownership continuity or solvent exits, AVA equips clients with strategies that preserve optionality.
The resilience to endure
As the experiences of hospitality groups like Okami demonstrate, adaptability and a commitment to core principles provide the foundation for surmounting adversity. But supplementing those attributes with specialised expertise is indispensable for navigating pivotal “make or break” scenarios.
Organisations recognising the value of proactive advisory and strategic execution will be best positioned to endure – and capitalise on – inevitable future disruptions facing Australia’s hospitality industry. Prepare your business by engaging AVA Advisory to strengthen resilience and map insolvency contingencies today.
Get in touch with our hospitality industry debt specialists on 1300 181 220 to book a consultation and get ahead of any struggles that may lie ahead.
As the insolvencies of respected operators like craft breweries Grand Ridge and Black Hops demonstrate, even long-standing enterprises can succumb to the perfect storm of compounding economic pressures.
However, the path navigated by the innovative Okami restaurant group highlights how adaptability, professional support and adherence to core principles can facilitate positive outcomes – even amidst daunting headwinds.
The adaptability imperative
For operators like Okami, a willingness to explore new revenue streams, operational models and technologies has proven vital for weathering pandemic and cost-of-living shocks. Innovations like seamless transitions to delivery/takeout, self-serve ordering efficiencies and kitchen automation enabled the Japanese eatery to enhance output while controlling expenses.
Yet astute business leaders recognise that innovation alone provides no panacea. Okami’s strategic investments into excellence—sourcing premium local ingredients, menu creativity, and culinary training—reinforced its brand reputation and customer value proposition. A downturn presents opportunities to double down on core strengths that resonate with loyal patrons.
Crucially, the group’s proactive adaptations were calculated, rather than reactive patches. That foresight and commitment to a long-term vision proved indispensable.
For hospitality business facing make-or-break scenarios, objectively and strategic planning – not emotionally driven decisions – must steer turnaround effects
Panic frequently self-destructive decisions that haemorrhage remaining
value
This prioritisation of proactive, expert-guided approaches underpinned Okami’s resilience and positioned the chain for future growth opportunities. It’s a philosophy AVA Advisory wholeheartedly endorses when advising clients navigating insolvency risks.
Our role is parsing complex situations with strategic foresight to optimise stakeholder outcomes – not facilitate disorderly collapses. We leverage specialised restructuring tools and hospitality sector acumen to formulate plans that preserve optionality.
For instance, our safe harbour advisory services provide a protective framework for proactive turnaround execution. We advise on measures like cash conservation, operational triage, creditor compromises and asset divestments to stabilise positions. This buys time to evaluate all pathways – from solvent restructures to facilitating value-accretive sales processes.
Too frequently, we witness operators delay intervention until control irretrievably
ceded to receivers and creditors. By this crisis stage, value preservation options are overwhelmingly constratined.
Guiding clients towards “best next steps”
Hospitality operators facing crunch points deserve expert counsel aligning with their circumstances and ambitions. For some, an insolvency event may indeed prove terminal, necessitating liquidation plans that maximise creditor returns while mitigating personal liabilities.
For others, our advisory supports ownership/investor objectives for rehabilitating core operations – mapping strategies like non-core asset sales, capital injections, refinances, and operational repairs to stabilise runways. Should owners seek full exits, we structure competitive sales processes to realise maximum business values.
Crucially, AVA’s independent advisory ensures all stakeholder interests are prioritised. We bring impartial examinations of corporate situations, unencumbered by competing incentives. Business owners receive candid assessments of their realistic pathways forward – optimising possible upsides without masking inconvenient truths.
Through this specialised guidance, even the most troubled hospitality operations facing long odds can navigate decisive turnarounds and achieve the next “best step” outcome. Whether facilitating ownership continuity or solvent exits, AVA equips clients with strategies that preserve optionality.
The resilience to endure
As the experiences of hospitality groups like Okami demonstrate, adaptability and a commitment to core principles provide the foundation for surmounting adversity. But supplementing those attributes with specialised expertise is indispensable for navigating pivotal “make or break” scenarios.
Organisations recognising the value of proactive advisory and strategic execution will be best positioned to endure – and capitalise on – inevitable future disruptions facing Australia’s hospitality industry. Prepare your business by engaging AVA Advisory to strengthen resilience and map insolvency contingencies today.
Get in touch with our hospitality industry debt specialists on 1300 181 220 to book a consultation and get ahead of any struggles that may lie ahead.
