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How we helped
When a $1 billion quick-service chain with a legacy brand came to AlixPartners, the company was underperforming and lacked a clear strategy for future growth. The company had grown significantly (to over 1,000 stores in 12 countries and 15,000 retail distribution points), but a high-cost structure and a lack of a cohesive channel strategy were weighing on the brand. So we partnered with the management team to lay out a go-forward growth strategy and an operational excellence transformation plan.
Our team began by constructing a profitability model using transaction-level data, and validated standard cost data to assess the true profitability of the business by product, customer, and channel. We then leveraged this improved understanding of the company’s performance as a baseline to develop a growth strategy including where to play and how to win.
In parallel, we conducted a comprehensive review of the business’ operations (e.g., demand forecasting, labor management) identifying short-term improvements and driving operational excellence across the business. Finally, we integrated the strategy and operational improvements into an overarching transformation plan that we helped to execute working side by side with the company’s internal team. In total, the transformation plan enabled the company to double EBITDA over the following three years.