Case Study                                                       Back Next

     Mexican Cafe Restaurant Chain

  $200 Million Revenue, 140 Stores

  Background:

The Company was facing serious issues that were impeding its growth and development.  Cash flow had stagnated.  Only 60% of the stores were meeting revenue and cash flow expectations.  Average ticket price was decreasing company-wide while industry average ticket prices were increasing.

The stock price fell from $20.00 per share to under $4.00 per share.

  Result:

A computer location model was designed and implemented incorporating demographics, psychographics and “available demand” with store sales predictability improving to +/- 10%; 22 unprofitable stores were closed.

A store level operating profit and loss system was implemented to evaluate food, labor and overhead costs of menu items; unprofitable items were eliminated.

A system was developed and installed to measure customer needs to increase visit frequency from 2 per month to 3 per month. 

The stock price rose from $4 per share to $17 per share over the following 6 months