Case Studies & Success Stories
Mediterranean Restaurant on the Peninsula
“The BOSS system is really all about tangible results!”
In 2005 this Mediterranean Restaurant had been in operation for 5 years. The sales had reached $1,800,000 the third year and pretty much dwindled since then. With very little growth the business was stagnating. When the owner contacted the consulting firm he was working about 60-65 hours every week. His efforts were mainly centered on putting off fires. He was striving on lowering the restaurant’s food cost while trying to maintain high customer satisfaction. The owner was still very passionate about his business. The quality of the dishes was not equaled anywhere in the neighborhood. The dining room, the kitchen and the toilettes were immactulately maintained. The priority was set on satisfying the cutomers. In 2003 the owner had taken home about $ 100,000, but his revenue had since shrunk to about $65,000.
Although a lot of efforts had been made on lowering the food cost percentage to about 34%, no standard procedures were in place. Therefore management had to apply constant efforts in the kitchen to maintain a low food cost. At the end of the first week of the project the consultant had created a complete Standard Operating Prcedure (S.O.P.) manual. Recipes and kitchen processes were standarized. The next week training was organized with the kitchen staff.
An inside action team was created using the dormant talents of some of the restaurant staff. Clear goals were set to improve Efficiency and propel the business.With the help of the consultant, the team developed an action plan for the next 12 months. The roles of each other were delineated and duties were allocated.
The consulting efforts were aligned with the goal of distinguishing the business from all its inferior competitors. Clear growth objectives were set, new targets market were identified, the business model was adapted and the front of the house (FOH) staff was trained and indoctrinated. Then, computer software was installed to serve as a database and to manage all clients names and contact inormation.
Satisfied customers were interviewed to help highlight distinctive characteristics. The comments of the customers were used to prepare a direct result marketing
campaign. Key prospective clients were targeted.
Inventory level was reduced by 11% and the food cost percentage dropped 1.5 points immediately following the standardization of all kitchen procedures. The money saved from the inventory was later re-injected in the marketing campaign. Read about what our clients have said.
Moral of the employees skyroceted. Turnover rate dropped signifacntly.
Foot traffic increased by about 20%, but even more importantly the average customer started to patronize the restaurant more frequently.
With added sales training, the average check went up 8% from $15.23 to $16.50 while the customer satisfaction has also been going up.
Restaurant is currently in line for closing its 2006 financial calender with sales in the range of $2,500,000.
Business owner is now working only about 35-40 hours per week and recently came back from a 4-day cruise with his partner.
Music North of the Border
“We are very satisfied with the work of both consultants.”
This was really a multi – facet business. Next to the store that retailed guitars, pianos and drums of all sorts, the owners also owned a music school with over 300 students attending classes. Annual revenue was in the $2,000,000 range. The couple who owned the business had been at the helm for 20 years. They “were” the sore! Without them the store couldn’t operate. When the contacted the consultants, they wanted to streamline their operation to prepare an eventual exit.
Mainly the project was designed around the re-organization of the business and all operation. But because of the large implication, and inventory system, and other
management financial tools were also developed.
In the first phase of the project the Functional Organization Chart was designed, and roles and tasks were allocated. The objective being to remove certain responsibilities from the owners, two key staff members were selected and promoted to managerial positions. Job descriptions were drafted along with an attractive incentive plan. Complete management training was also organized for the owners and the new managers to help everyone adjust to their new roles and positions.
Target markets were segmented along with certain sales objectives.
The company’s vision, mission and annual strategy were drafted and a Gantt chart was also developed to help schedule the activities for the coming months.
The transition was for from easy. Emotionally one of the owners simply didn’t accept to reduce her implication; while logically striving to create a turn-key business for the future buyer. The emotional transition and acceptation took several weeks, but now she is very well in her new reduced role as Executive Organization
The new organization structure was also used as a spring board to increased the sales of the business.
The inventory system put in place allowed to reduce the inventory significantly – down by 40% in one particular department. With reduced stress levels and responsibillities the owners (early fifties) are enjoying their job even more, Plans to sell the business have been put on hold, but one of the new managers has signified her intention to eventually take over the store and school!
Veterinary Clinic in Peril
“After months of not talking to each other, no one could have predicted we would reach an agreement in such a short period of time.”
When the consultants were introduced to the business partners, the atmosphere was somber. The partners weren’t on talking terms any longer.
About ten years before the consultants were invited to into the business the senior partner of the Veterinary Clinic had sold half his company shares to a younger and more technology driven verterinarian. The association was one made in heaven. The two were very complimentary and were able to allocate the roles and responsibilities of each for the success of the company. In ten years the company, mainly driven by the knowledge and enthusiasm of the junior partner, had acquired other verterinary clinics and was doing very well… until the younger partner hurt his back so badly that he couldn’t work more than a few hours a week in the business.
Luckly, during the creation of the partnership, ten years before, the two very intelligent professionals had the foresight to draft a partnership agreement with a dissolution clause in case one of the two was to be injured. Now, based on the sad occurrences and the stipulation of the clause, the non-injured party had to buy out the other, no later than September 30th 2006. The partnership paid for an insurance policy all those year to help in the future acquisition of one partner by the other. But $50,000 policy covered far less than half the value of the business.
The challenge of this consulting project was three-fold. Number one; assess the current value of the business stock to decide how much the acquiring partner had to pay. Secondly, the young veterinarian whom had completely devoted his life to the business didn’t want to sell – he knew he was forced to, but simply didn’t want to let go of a business with a high potential that he had built himself. Both partners agreed that the success of the firm was highly due to the coming of the junior veterinarian. Thirdly, even though the original partner had made his mind, and there were no coming back, about his decision to buy-out his partner, he didn’t either want to lose him, fearing the business might go down without the judicious management style of the younger partner.
The first phase of the project consisted in a review of the insurance contracts and of the partnership agreement, an in-depth analysis of past financial statements of the business, and thorough interviews with each of the partners.
Then the consultants assessed the value of the business using a tested method used by business brokers, wrote a report and a recommendation highlighting three potential solutions and one preferred.
A long negotiation meeting with the parners ensured.
No one, not even the partners could have foreseen a positive outcome to this problem. Their views of the situation were diametrically opposed. Yet, within only 35 billed hours the two consultants were able to assess the value of the business to a level deemed satisfactory by both veterinary partners, and make them agree on future dissolution plan. After the project all that was left to do was to call the business lawyers and ask them to draft a Buy-Sell agreement. All potentially litigious arguments had been negotiated. The senior veterinarian rated his overall satisfaction with the outcome of the negotiation to be 100% while the junior partne said his satisfaction was about 70%, but he also agreed that he never thought he would be so much satisfied. The consulting project was rate 100% successful.
Tractor Company gets back on Track
“Before you guys showed up here I was on the verge of closing down my $12M per-year-company and get myself a sales rep.job.”
The consulting client was a well-known American tractor dealership company. The owner of the business was a visionary. Many years before, when employed by the owner of what is now HIS dealership, he had single handedly pioneered a new way of selling farm machinery. Not only had his new approach changed the way the tractor industry sold its products nation-wide, but he had made himself a fortune in the process. So when the previous owner retired, he was the perfect candidate
to buy the business.
When he look over the dealership, about 12 years before we showed up, he was already doing well financially. But his new mehtod of selling helped him propel the sales from $3,000,000 to more than $12,000,000 in less than a decade.
The problem: Even though the sales had skyrocketed and the business was now employing about 40 local people in its four departments (Parts, Service, Sales, and Administration), the lack of orgranization and lack management expertise at the helm of the operations had made it impossible for the business to turn in a positive financial income card in the last couple years. The company’s net annual loss was always in the range of $50,000 to $75,000. This loss was largely subsidized by the salaries of the owner and his wife – about $150,000 all together. So their net take-home income at the end of the year, between the two of them was only about $75,000. The owner was working harder and longer hours to make up for the lack of productivity and the in-efficiency of his staff. His health
started to deteriorate.
He was working about 70-80 hours a week as the most successful sales represntative of the company. About 40 to 50% of all revenues were directly attributable to his efforts. The wife’s role wasn’t clearly defined. Aside from being the Boss Wife, her functions were not specifically identified – she had her nose in the most aspects of the administration/management of the business. Very smart and well educated woman, but not a good corporate administrator.
The scope of the consulting project was primarily based on the re-organization of the company’s 3 most important departments; Parts, Service and Sales. The
management of the company needed help to re-organize the positions, tasks and roles of all employees. The number one goal of the project: Make Money!
In the Parts Department we used the point of sales system to track the inventory and create par levels. We also re-arrange the job description of one of the clerks to make him more available to the service department.
In the Service Department we created an incentive program to increase the productivity, we also helped re-organized the layout of the garage for maximum efficiency in the use of all mechanic’s working days.
In the Sales Department we organized a series of sales tracking boards and reporting toold designed to reduce the duplication of efforts between sales representatives. We agreed on new profitability goals and objectives. We created a completely new commission system aimed at increasing the collaboration between the representatives
but also primarily to make sure that the company made a profit first. Also we standardized the rental process and created an appraisal tool to ensure that equipments were always reented at the same rate and all appraisals were done scientifically. Then we re-attributed the roles of rental agent and used equipment appraiser to people outside the sales department.
We also provided the Office Manager with financial tools and worksheets to ensure a better control over the operation…in foresight not only in hindsight.
Lastly, we completely overhauled the business Functional Organizational Chart to clearly delineate the lines of authority.
Well, first of all the business became profitable overnight. There was never a lack of revenue simply a lack in the administration and control.
The increased profit was used to hire General Manager to oversee the positions of Parts Manager, Office Manager, Sales Manage, and Service Manager and to maintain the profitability of the business.
The owner reduced the time he spent as a sales representative and assumed the role of Sales Manager. He started to focus more on coaching and monitoring the sales staff. He’s now working only about 40 hours a week.
The owner’s wife reduced her involvement in the business to the minimum.
The relations between the different departments employees became more cordial with everbody now fully aware of its place in the organization.