Acclaimed restaurant corporation hired Makowksy Group to assess and fix underperforming new concepts within their restaurant portfolio of brands. They required outside counsel and guidance to better understand their sub-optimal performance.
Turnaround and restructure operation divisions and increase catering profitability
Evaluate & Address:
- We surveyed all GMs and evaluated direct and indirect competitors.
- Fully evaluated catering operations and surveyed the entire chain and operations structure: general knowledge, pricing, delivery, product, personnel, and superstars.
- Evaluated and assessed in-store and online marketing, including Facebook, Twitter, and Instagram outreach. We conducted a full assessment of catering online presence and Yelp reviews. We compared the findings and found areas for improvement using our competitive benchmarking process.
- Utilized a proprietary rating system to compare within the chain and amongst other chains.
Develop & Sustain:
- Created a catering model to improve profitability from 7% to 43% in one quarter.
- Created a model market and enrolled other operations areas based on results.
- Designed a bonus program where everyone wins.
- Aligned accounting, operation, legal, executive, and field operations.
- Verified food cost with airtight processes; increased prices.
- Separated catering P&L.
- Using LEAN principles, eliminated all non-value adding activities.
- Revamped the entire fleet, with an emphasis on training and safety precautions.
- Empowered A-players.
- Managed catering division on an ongoing basis.
The catering plan developed reduced operating costs by $750,000 and improves operations efficiencies by $160,000 annually.
- Enhanced customer value perception
- Consolidated vehicle infrastructure
- Reduced insurance costs through training standards
- Reduced the number of catering stores and transferred catering sales to performing units
- Reduced all non-profitable stores