Andy Wiederhorn the CEO of casual dining chain went through bad times after purchasing this chain in 2003. He tried his best to bring the company into its best but failed in doing so. Performance of the company could not be brought into the same successful position which he wanted. It resulted into bad times, management team was all destroyed. Even there were recessions. In 2009 he finally decided to file bankruptcy for two of the restaurants at west coast subsidiaries.
From that time onwards Fat burger has entered in the list of those rare companies who bounced back from bankruptcy. Behind this there was a huge struggle and hard work of people. Now they have 40 locations in whole of the United States and am $ 82 billion franchise group. Throughout the world they have 120 locations. Wiederhorn shared some of the tips for success of company which are below.
Wiederhorn says that choosing the option of bankruptcy is last one for removal of debts. He entitles it as the most treacherous and expensive way. Only through this the debt can be restructured or reduced. Within four year the company reduced their debts to $ 8 million from $ 35 million. It was a huge success for them.
He also says that through bankruptcy he was able to renegotiate leases and developed new terms with the suppliers. It was not possible otherwise. Many of the terms and agreements were then released easily. Restructuring of his business was only possible through this mean. It helped in the reduction of operating expenses. He explained it very creatively to all the suppliers that working with the Fat burger would give them benefit. He made perfect planning for all the things.
Through suffering from the bad times, Fat burger went through great disadvantages. Their prices were lowered down as compared to the other selling companies in the business. For starting the same business and attracting the entire lovers they started a campaign with the name ‘Bite This Expansion.’
Wiederhorn exactly knew the importance of expansion. He expanded his business overseas. In 2006 he opened his first chain out of United States in the Canada and then later on in China. They have recently made agreement with the Shanghai based investment bank. Through this they will be opening many other chains in China. He proudly says that through these tips he got hold on all other companies.