Operational improvements for a multi-regional food service operator

The situation

A food service operator based in the UAE comprising both ethnic quick service and casual dining formats, which operated throughout the GCC and India, was facing a number of challenges. Despite strong sales growth, net losses were being incurred. The management team was at odds over growth opportunities. Brand management capabilities were lacking. And whereas sales performance varied across the footprint, high operating costs plagued every store. Strategy& was hired to perform a strategic assessment, valuation, and growth plan project.

How we helped

The Strategy& team began with an analysis of the client’s situation across the food services value chain. We suggested operational improvement opportunities, and determined the most attractive geographies across the Middle East for both quick service restaurants and casual dining restaurants. To help evaluate store and format chain performance and facilitate decision making, we formalized a process and designed a dashboard. We developed a business planning process to determine medium-term development strategies and pilot growth in each market; designed a new organization structure to better accommodate the different markets and different formats; set revenue enhancement initiatives, and developed a valuation model based on a five-year growth plan.

Results

The board approved the strategy and valuation, and asked the Strategy& team for help in finding a potential buyer.