Restaurant Group Turns-the-Corner on Post-Pandemic Slump

COVID recovery was not good for an iconic restaurant operator who went from $4M+/yr to just under $2.5M/yr in sales revenue. We dove right in to analyze their P&L’s in order to figure out how they could recover. We found many problems, including a severely bloated labor spend (with over 30% of each payroll being dragged down by FOUR managers being paid full-time salaries) and establishment operations only going for limited hours.

Based on my recommendations, ownership made an executive decision to pivot away from their bloated marketing and payroll spends in order to prioritize more control on tightening overhead expenses. They also made significant changes based on our discussions (including opening up for lunch hours and establishing a loyalty rewards program) and confirmed that the establishment reflected profitability with sales performance returning to their pre-COVID numbers.

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