What do you do when you're in the midst of expanding your family-owned restaurant business and a black swan event like Covid plummets sales by 80% and forces unanticipated layoffs?
You convert all your excess cash reserves into Bitcoin, of course.
That's what Tahinis, a small restaurant chain in Canada, did in August 2020 when prices for ingredients to make staple Middle Eastern dishes like shawarma began soaring due to supply chain bottlenecks and the devaluation of fiat currencies.
According to Tahinis co-founder Aly Hamam, poultry shot up by 45%, beef is up 25%, imported goods and spices are up 65%, and oils are up 110% since March 2020.
Meanwhile, Tahinis is up 460% on their initial Bitcoin investment (Bitcoin traded under $12,000 in August 2020; it's currently trading at about $54,000). That investment has allowed them to expand to 8 locations, with a total of 29 locations expected by 2022.
The Macro Strategy (by MicroStrategy)
Tahinis is following the Bitcoin corporate playbook laid out by MicroStrategy CEO Michael Saylor. They keep a few months of working capital in cash and save whatever is left over (their profit) in Bitcoin.
When asked about Bitcoin's price volatility after their initial Bitcoin purchase in August 2020, Aly calmly responded, "I believe we are in for a bull market that will shock the world. Even when we hit a bear market in a few years, it (Bitcoin's value) will be massively higher than today. And because my conviction in Bitcoin is so high, I doubt we will ever sell them".
As a matter of fact, Tahinis continues to sweep profits into Bitcoin. They're buying Bitcoin month after month regardless of price. In other words, they're stacking sats.
"Our cash reserves swelled and business was booming again (as a result of the government stimulus). But it was apparent to us that cash didn't have the same appeal. That eventually, with all the excess cash circulating, it would be worthless."
"This is a generational invention and I learned from Saifedean to have a low time preference," adds Ali. "We plan on passing on this company and its wealth to our kids."
Recommended Reading: This twitter thread by Tahinis Restaurants explaining why they chose to invest profits in Bitcoin.
