Operational and Financial Analysis

SITUATION
Well established restaurant that appears to be a smooth-running operation and massively successful financially.

PROBLEM
Reality is the location on multiple fronts – staffing (quality and execution), consistency (experience – food and service), financially (COGS, labor, other operating expenses). The location management lacked the ability to identify and correct core deficiencies.

SOLUTION
Perform an operational & financial analysis to identify known and unknown core deficiencies. The process included blind mystery shops, known observation, interviews with staff, menu dissecting and analysis as well as a deep dive on the financial health of the restaurant.

BENEFITS
The owner was provided a 60-page report that identified and outlined every deficiency with a recommend course of action to correct. The report identified the following:

  • Training was non-existent
  • Hiring lacked the in-depth questions and review (hiring warm bodies)
  • Excess inventory that negatively affected cash flow
  • Cost of Goods Sold (COGS) could be reduced by over $60,000 annually
  • Labor Cost could be reduced by over $50,000 annually
  • Total increased profitability based on existing revenue that could be recognized is over $200,000
  • If lost revenue was captured and recorded, increased revenue of over $175,000 would provide additional profitability

For more information, contact Mark G. Moeller at (203) 513-2432 or [email protected].

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