Soup and Sandwich Chain

The Situation

  • Privately held, soup and sandwich chain with 200 company-owned units and 100 franchise units
  • EBITDA has been declining for several consecutive years due to both internal and external factors despite stable or higher sales
  • Company had inconsistent performance from different configurations and expansion to non-core markets
  • Company underperformed relative to projections during an eight-month extension from lender

Role(s)

  • Financial Advisor

The Work

  • Retained by company to assess business plan and strategic store footprint review as part of forbearance effort with lenders
  • Performed cohort and correlation analysis, analyzed modeling impact of third-party delivery services, and identified growth sales opportunities within each unit
  • Provided recommendations for tactical, short-term efforts, including lease negotiations and non-core market evaluations
  • Provided additional recommendations for strategic, long-term efforts to improve guest experience, aligning company‚Äôs family-oriented value and reconfiguring store format
  • Business plan enables short-term profitability improvement through third-party delivery and store closures
  • Due to COVID-19, assisted with management of short-term liquidity and negotiation of short-term forbearance with lenders

The Results

  • Updated strategic plan resulted in positive same-store sales growth and an increase in store-level EBITDA
  • Negotiated a three-month extension with its lenders, allowing management to focus on restarting operations and engaging in cost-saving measurements

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Overview

  • Restaurant
  • Finanacial Advisory

Engagement Team