CASE STUDY #1
A well-known and long-established Italian restaurant near the Jersey Shore
This restaurant with a strong brand has been providing outstanding Italian dishes to its loyal patrons for many years. Over time, this restaurant has become more popular, which has put stress on the staff. Of note, there is a limited capacity to the volume the kitchen can handle, and there was no option to expand the size of the kitchen.
The restaurant owners felt “stuck” and engaged with CFO on Demand when they could not find a solution to improve their business model and improve profitability.
The CFO on Demand team engaged with this restaurant and as a first step and closely examined its kitchen operations. The team also reviewed the menu, and determined there were ways to streamline the kitchen by shedding similar menu options and consolidating menu choices.
With guidance from CFO on Demand to strategically cut the menu by 15%, the restaurant was able to more efficiently and cost-effectively serve its patrons. Importantly, the restaurant improved its profitability by 20% over a 6-month period and will sustain this improvement into the future. Another benefit: customer satisfaction has improved with a 13% increase in 4- and 5-star reviews since management implemented the changes.
NOTE: the results obtained by the CFO on Demand team for this client carry across various industries, including manufacturing.
CASE STUDY #2
A New Jersey-based junk and waste removal company with an inventory of dumpsters
This junk removal company has two main lines of services that it offers customers: (1) on-demand junk removal, where a customer contacts the company to have items removed from a home, office, or other location and then properly disposed of; and (2) dumpster rental, where a customer rents a dumpster for a period of time, and once full or no longer needed, relies on the company to remove the dumpster and dispose of its contents.
In the bookkeeping and accounting, this company did not break out the two services and thus did know if junk removal or dumpster rental was the more profitable part of the business, and did not have an understating of which division was the main driver of revenue.
The business owners engaged CFO on Demand when they felt their business had plateaued and there was not a clear solution to further grow the business.
The CFO on Demand team worked with company management and analyzed the business and its books. By pulling apart the projects and associated numbers, it was decided where and how to invest in the company for the future.
The client company was able to confidently and strategically develop a business plan for the future to drive business growth, and determine which divisions warranted short- and long-term investment. The company made decisions as to how many dumpsters to have in its inventory for rental, as well as the size of the staff needed for junk removal. The result has been a 10% increase in revenue and a 15% boost in profitability.