Supply chain review yielding $14M for a restaurant chain
- Location
- Florida, USA
- Year
- 2023
- Engagement
- Profitability Improvement: Supply Chain & Logistics
A 800-store drive-thru restaurant chain was experiencing financial challenges due to changing consumer preferences. Previous attempts to reduce food and distribution costs were met with challenges due to heavily franchised network.
Our team analyzed 18 months' spend to identify key categories, items and unit prices. We compared prices paid to 70+ indices and developed 20+ "should-cost" models for processed items and for distribution cost drivers. We conducted preliminary network optimization for stores / DCs.
Measurable impact
$14M
Identified $9-14M savings opportunity based on food costs (protein, dairy, packaging)
Food and Beverage
Measurable impact
4:1
Savings would be achieved over 20 week project with 3 FTEs, generating an ROI of 4:1
Food and Beverage
Case snapshot
Lower delivery fees from distributors
Food and Beverage