qsr - maine pointe · proactive source of new value creation. as a result, many restaurant...
TRANSCRIPT
QSR
Breaking through the barriers to better
growth and profitability via enhanced
procurement, distribution, restaurant
operations, and guest experiences.
MainePointe.com
Boston Calgary Schaffhausen Shanghai
2
Maine Pointe drives profitable business transformation through
n Operations Excellence
n Strategic Procurement and Distribution
n Logistics
…and uniquely integrated approaches to Sustainability and Organizational Improvement.
A New PathwayA New Pathwayto Competitively Enhanced Guest Experiences, Restaurant P&L, and Corporate EBITDA
3
In one client relationship
with a leading seafood chain,
Maine Pointe delivered a new
Procurement Management
Operating System, achieving
annualized savings of $5.1
million and an ROI of 5.7:1.
For many years, Quick Serve Restaurant (QSR) and Casual Dining companies have successfully diversified their guest experiences with a mix of menu offerings, dining atmospheres, and flexible pricing structures to increase traffic and maximize profits.
They strategically acquired and sold brands, with their desired geographic locations, as a method for gaining immediate-term increases in market share and sales volume.
While that approach may have produced the desired outcomes, it just
as frequently risked the value perception of legacy customers along
with causing significant operations, procurement, manufacturing, and
distribution challenges. These essential functions became increasingly
constrained as a reaction to the need to reduce costs rather than a
proactive source of new value creation. As a result, many restaurant
companies have not focused on building a depth of supply chain expertise
or transferring best practices from other industries as a means of gaining
strategic advantage.
As the competitive global landscape is reshaped, QSR and Casual Dining
companies are challenged to think and act differently – on a weekly, daily,
if not hourly basis. Lasting value can be created through a change in the
way the overall organization performs on a restaurant-by-restaurant basis.
By optimizing operations and the supply chain as differentiated drivers of
sustainable growth, company leaders can transform the results of their
continuous improvement initiatives. The menu mix can be better leveraged
toward targeted results in traffic and guest counts, satisfaction scores,
margin improvements, and distribution optimization. Real overall value
chain improvements can reduce operational complexity, enhance the value
perception of customers, and strengthen franchise development.
Restaurant managers become better able to calculate and build capacity
for meeting true real-time demand that significantly lowers costs
while increasing same store sales and securing a more consistent guest
experience. They will no longer be held hostage to reactionary or impulsive
responses to business expectations that are not validated.
4
Don’t Be Fooled into Going it Alone
QSR and Casual Dining company leaders know that they need a realistic
plan to increase revenue and lower costs simultaneously – especially as
they penetrate new global markets where the competitive factors may be
less familiar and more complex.
It’s common to underestimate the importance of practical, on-the-ground
supply chain experience as a means for accelerating improvements. After
all, personnel are necessarily focused on meeting the basic day-to-day
expectations of guests and distracted from proactively addressing the root
impediments to sustainable EBITDA improvements. It’s not a capability
issue but a capacity and perspective limitation.
Companies have tended to go it alone but if they do hire an external
resource, they retain one with single, or the same, industry experience.
Trouble is, those options are what everyone else does and the result is
more of the same.
If you want to effectively differentiate your brand as well as convert your
guest population and franchisee network into brand champions, you
need to transform your business with optimized operations and a fully
integrated, sustainable supply chain. This requires the right combination
of strong company leadership, empowered restaurant management, and
a multi-industry external resource. Engaging a resource with wide-ranging
supply chain experience can put the best ‘feet on the ground’ to achieve
bottom-line results more quickly than an internal team can on its own.
At Maine Pointe, our deep knowledge in multi-industry best practices
is rooted in frontline operations experience and executive relationships
across the food industry value chain – from farm and fertilizer,
manufacturing and processing through the dining experience on
premises and off site.
5
The Difference We Make
Maine Pointe collaborates with QSR and Casual Dining companies to
dramatically compress the cycle time to greater profitability, higher same
store sales and customer satisfaction, and increased market share.
We help restaurant company leaders confidently re-engineer operations
and the supply chain to transform how the brand actually operates on the
ground. Our teams have consistently delivered an engagement average
of between six to ten times ROI, with a guaranteed 2:1 ROI based on
annualized savings.
Our collaborative approach to working with clients focuses on lowering
internal and external costs, achieving greater predictability, and
strengthening restaurant service relationships. Some of our sector
successes include:
Achieving $6 million in savings from a $1 million investment across all
franchises of the largest U.S. chain of double drive-thru restaurants.
Delivering over $5 million in savings for the #2 U.S. quick-service
Mexican fast food chain along with enhancing their professional
environment through improved planning, execution, and
category leadership.
Realizing multi-category savings in excess of 30%, and annualized savings
in excess of $7 million (a 6.4:1 ROI), by transforming the procurement
focus of a major entertainment complex operator from transactional
to strategic.
In addition, responsible business practices require attentiveness to ‘license
to operate’, regulatory compliance, and risk management concerns. Our
teams integrate a bottom-line approach to Sustainability to strengthen
the sourcing, logistics, and operating standards across the value chain of
all restaurant company assets.
6
Our Values-Based Approach
While there are a number of different ways for Maine Pointe to
collaborate with QSR and Casual Dining companies, we typically work
on an aggregation of multiple distribution, procurement, and operational
initiatives to deliver significant impact on the financial performance
of the business.
Implementation
n Identifies and implements operational improvements
n Transforms the global supply chain via the Total Value
Optimization model
n Aligns the company teams with the leadership’s strategic imperatives
and transformation agenda
n Delivers annualized savings, supported by the Maine Pointe guarantee
Continual Value Enhancement
n Implements new approaches and their attendant methodologies,
processes, infrastructure, and behavioral changes
n Perpetuates value creation through cost reduction, revenue
enhancement, and productivity gains
n Integrates the Maine Pointe Sustainability framework to substantiate
and leverage new sources of value creation
Our Approach Emphasizes:
n Alignment with client’s work
flow and organization culture
n Integrity-driven assessments
n Thorough, rigorous
implementation
n Transparent and
accountable results
n Regular progress reports
and meetings
n A bottom-line commitment
to Sustainability
n Collaborative knowledge
transfer
n A focus on the client team
7
“We brought Maine Pointe
in to help us review our
key food and beverage
categories, and to identify
cost savings opportunities
along with a sustainable
procurement process.
Their unique approach to
organization and capability
development has driven
significant cost reductions –
including a 6% annualized
reduction in total
food cost.”
Adam NoyesSenior Vice President Supply Chain
Checkers Drive-In Restaurants, Inc.
Analysis
n Utilizes interconnected diagnostic approaches to understand the
company’s strategies and priorities
n Enhances investment decisions through the identification of value
creation opportunities, organizational and productivity improvements,
and guidance on risk areas
n Delivers an objective, action-oriented, and detailed assessment of
the current or potential supply chain – including its functional and
departmental processes
n Identifies and quantifies potential bottom line asset improvements, as
well as working capital risks and opportunities
n Discerns the appropriate value creation opportunities to be factored into
ongoing and future budget decisions
n Maps out a clear pathway for seizing opportunities that will achieve the
projected ROI in a full engagement
8
About Maine Pointe
Maine Pointe is an operations management and implementation firm
that is rapidly becoming a leader in sustainable global supply chain
transformation. We help clients maximize profits and improve cash flow
to free up working capital while developing a sustainable approach to
business practices.
Maine Pointe accelerates value creation by leveraging our frontline
operations expertise across multiple industries to break through the
barriers to improved growth and profitability. Our methodologies,
processes, and collaborative knowledge transfer capabilities help
transform how QSR and Casual Dining companies actually operate
on the ground.
Maine Pointe teams work with all personnel to seize opportunities that
drive significant cash, profitability, and EBITDA enhancements to the
bottom line while improving quality, cleanliness, and the overall
guest experience.
Select QSR and Casual Dining clients:
Captain D’s Seafood KitchenCheckers Rally’sDave and Buster’sDel Taco
“Maine Pointe delivered
nine training modules from
‘Supplier Conditioning’ all the
way through ‘Implementing
Supplier Agreements’ and
‘Improving and Building
Supplier Relationships’.
These modules will help us to
monitor current and future
market conditions, maintain
quality and consistency,
and improve the food costs
throughout our restaurant
system.”
Paul Murphy
President and CEO
Del Taco Restaurants
U.S. (Headquarters):
Independence Wharf
470 Atlantic Ave., 4th floor
Boston, Massachusetts 02210
Telephone: 617.273.8450
Fax: 713.467.9921
William (Bill) Forster
Chief Consulting Officer
Cell: 617.894.2838