| What We Found | What We Achieved | $ Impact |
|---|---|---|
| -6% SSS | +2% SSS (18 Mo.) | EBITDA from $100M to $120M |
| Mediocre EBITDA |
200 basis pts EBITDA improvement |
28% increase in free cash Apex Restaurant Group Advisory and Mana |
Project:
Improve an underperforming national QSR chain
What We Found:
• Declining sales in the high single digits
• Missing profit plan for the second consecutive year
• Poor new unit opening performance
• Declining rate of new unit openings
• Moribund limited time offer (LTO) product pipeline
How We Approached It:
• Added LTO activity
• Ramped up franchising
• Ramped up real estate closings
• Streamlined supply chain
• Identified alternative vendors
• Added gift cards
What We Accomplished:
• Improved sales to positive 2%, a trend change of
approximately 8 points
• Exceeded quarterly and full year plan for 18 months
• Streamlined new unit investment and shifted
strategy to significantly improve investment returns
• Opened 1,000 units over 18 months
• Launched 3 new LTO initiatives
• Positioned chain for private investment
| What We Found | What We Achieved | $ Impact |
|---|---|---|
| Declining margins Declining comp sales Negative free cash flow |
500 basis pts margin initiatives achieved 350 basis pt comp sales improvement Positive free cash flow sustained |
$20M free cash flow improvement |
| Excessive G&A cost | 50% reduction to total G&A | |
| Declining EBITA | 37% year 1 EBITDA |
Project:
Turnaround declining heritage brands
What We Found:
• Dramatically decreased number of units
• Negative cash flow
• Customers questioning value proposition
• No “menu news”
How We Approached It:
• Assumed control of operations, finance,
procurement, IT, HR & marketing
• Developed a coherent consumer message
• Systematized royalty collection
• Re-engineered menus
• Developed local store marketing (LSM) campaigns
for all corporate stores
What We Accomplished:
• SSS Improved from -2.5% to +1.0%
• Health insurance and benefit costs reduced by 12%
• Inventories reduced by 12%
• New credit availability increased by 20%
• Franchise network consolidated and strengthened
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| What We Found | What We Achieved | $ Impact |
|---|---|---|
| -6% SSS | Flat SSS | Increased EBITDA |
| Inflated G&A | Reduced 45% | 60% free cash increase |
| Inflated Labor | Reduced 600pts | |
| 8.5% operating Margin | 12.3% operating margin |
Project:
Turnaround a high-visibility regional chain with
declining sales and negative cash flow
What We Found:
• 5-year-old southeast regional pasta chain; 3 years
declining sales
• Fluctuating margins
• Out of control labor
• Confusing consumer proposition
How We Approached It:
• Assumed control of operations, finance,
procurement, IT, HR, and marketing
• Closed inefficient head office; moved all support
functions to consolidated facility
• Re-engineered menu to focus on easily understood
pasta items
• Developed and built new prototype generating full
revenues in less than half the space
• Established national procurement contracts and
systematized HR
What We Accomplished:
• SSS from -6% to flat
• Unit payroll costs reduced 20%
• G&A costs reduced 45%
• 60% increase in consolidated free cash