Turnaround

Industry : Hospitality
Sales (in m€) : 300
Staff : 4 600

Context

  • Flagging market in both volume and value combined with aggressive competition from newcomers in the business
  • Internal disorganization due to a motley portfolio of brands / Thinning profitability per restaurant
  • Cash flow generation falling short of financial requirements of rebranding

Our job description

Phase 1: Diagnosis

  • Financial diagnosis based on historical data and current situation output. Properly assess profitability of each brand/BU
  • Operational diagnosis regarding main flows, internal organization and internal constraints over times of significant change.
  • Design a target organization fit to implement synergies between brands and show responsiveness. The company functioned with two-tiered HQ, one for each of the 5 brands and the central HQ. Financial teams only offered shared services to operations.
  • Cash flow forecast implementation to secure timing for execution
  • Modeling of various scenarios

Phase 2: Implementation of turnaround plan

  • Detailed approach reg. Turnaround plan
  • Carry-out vendor due-diligence to prepare strategic disposals and document by brand the turnaround plan and carve out issues or upsides
  • Cost cutting analysis

Achieved

  • Sped up of decision-making upon approval of diagnosis and possible avenues for turnaround by management and shareholders.
  • Shared our conclusions with lenders in order to secure financing over that specific period of time.
  • A year after forming of the new group, all actions taken and strategic disposals completed

Keys to success

  • 6 months process from diagnosis to decision-making and implementation on the field.
  • Shoring up of company’s situation based on a slow business assumption, with a view to mitigating dependency on market swings.
  • Active involvement of a large number of managers at all levels of
  • Model Transformation Plan from P&L to Cash-flows, related timeline and operational actions.