Publications + Presentations

Kegler Brown Hill + Ritter joined ORHA Legal Center LIVE for a panel discussion on growth in the restaurant and hospitality industry. Jacob Dobres, who leads the firm's Workers' Compensation practice, moderated the discussion, drawing connections between financing, franchising, and employment as the conversation moved between panelists. Steve Barsotti, Kacie Davis, and Brendan Feheley addressed financing, franchising, and employment considerations, respectively, organized around a single framework: Control, Discipline, Growth.

Growth Without a Plan Is the Risk

Restaurant operators face constant pressure to expand, whether through new locations, new markets, or franchising. That pressure often pushes decisions ahead of the infrastructure needed to support them. The panel was direct on this point: there is no effective middle ground between staying put and committing to growth. Partial investment in infrastructure tends to produce the same inconsistency and strain that disciplined growth is meant to prevent.

Capital Structure Decisions Precede the Raise

Steve outlined what needs to be in place before a business takes on outside capital, whether through a bank loan or an equity partner. The financing decision is not limited to securing funds. It determines what the resulting capital structure means for control going forward, and whether the terms match what the business can realistically support. Capital taken on without a defined plan for its use remains one of the more common causes of stalled or derailed expansion.

Franchisee Selection Carries Brand-Wide Risk

Kacie explained what "ready to franchise" means in practice and how to evaluate prospective franchisees, including operational skill sets and financial readiness. Franchising introduces a distinct risk profile because brand reputation now depends on operators outside the original ownership group. A single underperforming location under a franchise model can affect how customers perceive the business as a whole, not just that location.

Employment Risk Scales Faster Than Expected

Brendan covered the employment exposure that comes with adding locations and headcount. Risk in this area does not simply increase with scale, it compounds: more employees mean more variability in how policies are applied, more potential for inconsistency across locations, and more exposure where HR practices have not kept pace with the business itself.

Evaluating Whether an Opportunity Is Worth Pursuing

Jacob closed the discussion with a practical question: how does an owner distinguish a sound growth opportunity from growth pursued for its own sake? Disciplined growth requires the same level of scrutiny at every stage. Owners who evaluate timing, readiness, and capacity before committing are better positioned to avoid the pitfalls that most often catch less prepared operators off guard.

For guidance on financing, franchising, or employment matters related to your business's growth, contact Steve Barsotti, Kacie Davis, Jacob Dobres, or Brendan Feheley.