Operational Turnaround & Exit of Quick-Service Restaurant (QSR)
Food & Beverage / Carry-Out & Delivery Pizza
The Challenge
Our client owned an independent carry-out and delivery pizza location that was suffering from eroding margins and operational stagnation. Despite a good location, the business was bleeding cash due to runaway Prime Costs, inconsistent delivery times, and a lack of digital presence. The owner was fatigued and sought to stabilize the business for a quick sale, but the current P&L statement showed a valuation that would not meet their exit requirements.
The Solution
We deployed a comprehensive "Rescue & Revitalize" strategy focused on cost controls, leadership, and digital marketing.
Operational Streamlining & Cost Control: We immediately audited the supply chain and portioning standards. By renegotiating vendor contracts and implementing strict inventory controls, we lowered Food Cost by 5%. Simultaneously, we optimized the kitchen flow to reduce delivery drive times, increasing customer satisfaction.
Strategic Leadership: We identified a gap in day-to-day oversight and recruited an experienced General Manager with a track record in high-volume delivery logistics. This addition removed the owner from daily operations, allowing the business to run as a "turnkey" asset—a key selling point for potential buyers.
Digital & Social Growth: We revamped the marketing strategy to focus on hyper-local social media advertising and email retention campaigns. This drove a 25% increase in online orders and significantly boosted the Average Ticket Size by upselling high-margin sides and drinks at checkout.
The Result
The intervention transformed the business from a liability into a profitable asset in under 10 months.
Financial Turnaround: We successfully reduced total Prime Costs to below 55%, flipping the business from a monthly loss to a healthy 16% net profit margin.
The Exit: With a stabilized management team and a clean, profitable P&L, we helped the client broker a sale to an investment group. The business sold for substantially higher than the liquidation value projected at the start of our engagement.