This company is a seafood restaurant with locations across the world.
A food contamination led to the sickness of many individuals after they consumed food served at a seafood restaurant. The restaurant was one of several owned by the same organization. Though not all restaurants received complaints of illness, many were closed by local food safety regulators and the company was named by the media in its reporting of the event.
Following the consumer complaints and other reports of illness, local health officials ordered the closure of many restaurant locations operated by the owner in a particular region. The business owners disposed of products, closed certain locations, and suffered a significant loss of profits over the months that followed. Additionally, legal claims were brought against the business.
Analysis of the sales data showed that the sales at various locations fell significantly, with a period of no sales during the closure period, then reduced sales for many months as a loss of confidence and a competitive market meant sales levels at the restaurants were slow to return to normal. In all, the business loss spanned almost two years, with some restaurants never returning to pre loss operating levels. Additionally, expansion plans for restaurant upgrades and modernizing the food service delivery were delayed.
Baker Tilly’s Forensic, Litigation and Valuation Services team set out to analyze and prepare financial damages reports to get a better understanding of the situation at hand for the case. Our professionals became an extension of the legal team handling this matter for their clients. Furthermore, our team:
As a result of the work provided by Baker Tilly, the clients were able to establish the financial impact felt by the restaurant as a result of the loss event, and the case reached a favorable settlement before trial.
