Business-wide cost reduction for a UK restaurant group
For one of UK’s largest casual dining chains, we identified efficiencies of £20-40m, and supported the resulting transformation.
Our work covered multiple brands, regional and head office functions and all restaurant operations. We rapidly identified savings to be achieved through labour scheduling, operational process improvement, head office cost-cutting and reducing complexity. We went on to support the client to detail, trial and implement the plans, including running the transformation PMO.
Context
For the new CEO of this UK casual dining group, whose financial performance was rapidly deteriorating, we conducted a business-wide cost review.
Everything was in scope across multiple brands, restaurant operations, regional management and head office functions, including both pay and non-pay elements. And we would need to deliver findings both quickly and rigorously, enabling the client to stem the losses and rapidly turn things around.
Approach
Bringing deep knowledge of the restaurant space and urgent turnarounds, our project director and team delivered a robust diagnostic at speed.
We identified £20-40m of annual cost savings, based on taking a new approach to labour scheduling, redesigning restaurant operational processes, restructuring regional management, slimming down head office costs, and reducing the overall complexity of the business.
Our team went on to detail the plans and to support their trialling and implementation, including running the transformation PMO.
Impact
The work delivered significantly reduced head office costs and rationalised sites, as well as a reprioritisation and streamlining of brands.
It was the foundation for a dramatic transformation and turnaround that is still underway.