Industry : Hospitality
- 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
- 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.