Troubled recently opened family restaurant
Recently opened business (6 months) with an excellent marketing campaign and a very, very good new concept is doing significant business, but can’t pay its bills to the point that the owners keep sinking more and more of their limited personal funds into the business.
Analysis of the business as it was operating.
- Food and labor costs.- too high.
- Bookkeeping lacking in information
- Operations analysis – inefficient and counter-productive
- Communications breakdown.
- .Rent and Debt service acceptable
With continual oversight, addressed all problems with owners and strategize the solutions.
- Menu updated to increase efficiency and profitability.
- Restructured management organization and communications to be more responsive to costs of doing business.
- Reorganized operations for greater efficiency.
- Developed. budgets within the framework of the operations and the menu.
- Organized relief from new vendor debt.
- Coordinated a re-structuring of the debt service with the lending institution.
Four years later restaurant is expanding to its second location.