TURNAROUND PLAN FOR NATIONAL CASUAL DINING CHAIN

Turnaround Case Study

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. 

OBJECTIVE

Turnaround and restructure operation divisions and increase catering profitability


ACTION

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.

RESULTS

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

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