The landscape for restaurant brands is evolving at a rapid pace. With so much to keep up with and not enough quality infrastructure to support the business, it is prudent to work with a partner who has the expertise to customize a winning approach to addressing your brand’s opportunities and then developing strategies which increase profitability and set you up to move forward successfully. Kinetic12 can help.
Areas of Opportunity for Your Brand
Your needs may be small or large, but regardless, they are important to you. Kinetic12 takes a customized approach to what your brand needs by asking these questions:
- Are you struggling with the quality and quantity of labor?
- Are your managers focused on your guests or putting out fires?
- Are you falling short of your revenue projections?
- Is your average check below where it should be?
- Is Customer engagement and repeat business an issue?
- Do your customers have a great experience each time they come in?
- Is your staff fully engaged and wanting to make your brand great?
- Are your food and labor costs where they should be?
- Is there optimal productivity in your restaurants?
- Is your technology strategy aligned to your business goals and do you have a clear understanding of the technologies available?
- Do you have underperforming locations?
- Is there more competition in your markets that is causing you pain?
- Is your supply chain positioned for the future of your business or is it stuck in the past?
- Are you positioned for growth?
Operations Brand Assessment
Kinetic12 believes that every brand needs to evaluate how they see their current business and where the pain points are.
An on-site assessment of your operation will identify gaps and opportunities which lead to the development of solutions that will improve your business results.
Some of the key areas that we look at:
- Front of House (FOH) and Back of House (BOH)
- Employee Engagement and Culture
- Customer Engagement and Experience
- Integration, Data Evaluation and Reporting opportunities
- Processes (SOPs)
- Productivity & Efficiency
Assessment Deliverables – Where do you stand?
You now have a clear snapshot of where there are issues and opportunities. In most cases, the majority of what is happening in your restaurants is positive, but that alone will not get you where you need to be in both the short and long-term.
A Kinetic12 Operations Brand Assessment will improve your business.
Operational Efficiencies & Labor Productivity
Greater efficiency and improved productivity will make a positive impact on your brand. The end result is that your guest and employees will be more engaged and your financials will be improved.
Supply Chain Procedures & Adjustments
Brands always assume that they are buying well, their distribution agreement is the best it can be and that their supply chain partners are totally loyal to them. In reality, there tends to be significant opportunity to make improvements. Much of this is due to the fact that supply chain has become much broader in scope making it difficult for a small team to be able to make all the right decisions.
Choosing the right technology comes from understanding your brand and how the operations run. Investments in technology need to result in increased sales, decreased costs and improved profitability. With technology moving so fast, a specialist is needed to help you make the right decisions.
Growth used to mean “cookie cutter”. In today’s restaurant landscape, each market is distinctively different with a wide array of competition and consumers who want different things. Your footprint needs to be adjusted and your menu needs to be well thought out.
Do you have the expertise on your team to deliver the right message about your brand? It is difficult in any organization to have a marketing team that is specialized in all areas. Differentiation in a competitive marketplace is crucial to a brand having success.
Culinary and Product Innovation
Your brand is under pressure to be bigger, better and faster than your competition. Handling everything internally, for most organizations, can result in rolling out products that you thought were cutting edge, but ended up being quickly out dated. There needs to be a structure and process to drive innovation and, in most cases, support from outside the brand, including from suppliers.
Bad decisions can be avoided by having a clear understanding of the details of your business. Data analytics can provide this. This involves data analysis before an investment as well as evaluating previous investments.
Financials are important, but it’s often what’s “behind the P&L” where the real opportunities lay. For instance, you could have underperforming locations or markets and assume that it is either a bad location or it has poor management. In most cases it is a combination of things which requires an on-site deep dive to fully understand.
Whether you are buying, selling or simply looking to maximize your investment, the financials alone will not tell the story. In most cases, investments are done strictly by the numbers and by people who may not have a deep understanding of the restaurant industry. Looking “behind the P&L” will identify essential information to help you make more educated decisions.
Kinetic12 helps investors by doing a data-driven evaluation of potential brand investments as well performing on-site assessments of key markets to better understand how the brand is performing and what the future looks like from an operational standpoint. We use our proprietary methodology and tools to assess your units to cluster and map them in a way that more clearly identifies opportunities for improvement.
Market positioning and competitive landscape assessment (above)
We help you understand the market demographics from consumer behavior to business trends. The result is up-to-the-minute data and insights that help you know where to play and what to avoid.
Understanding how businesses stack up to industry standards and what is considered best in class is critical when it comes to investment decisions. We’ll help you review how the company compares with leading competitors. We’ll also identify key strengths and weaknesses to help you make the best decision on investing as well as have a roadmap for future business improvement.
Business strategy evaluation
There’s a big difference between a strategy that only exist for the benefit of potential investors and one that is grounded in fact and can be effectively executed. To make the best judgment for your future investment return, it takes a thorough analysis that will help you know if the strategy is solid and actionable.
Through whitespace analysis we’ll help you pinpoint a plan for organic growth and identify new acquisition targets. We will conduct a thorough analysis of the organizations route to market, product and brand relevancy and positioning, and financial situation with a focus on topline growth and margin leakage.
Financial analysis & forecasting
Kinetic12 understands the importance of financial modeling in assessing the value of a potential acquisition. Kinetic12 has completed financial modelling projects including valuation models and “what if” scenario planning models. We can act as a resource to help support the valuation by validating food industry specific assumptions and benchmarking against others in the industry.
Business strategy design and implementation
Once the investment has been made, the focus shifts to maximizing the return of that investment. Often that necessitates a shift in an organization’s business strategy. Kinetic12 helps organizations not only create a new business strategy but also ensure that it is executed. From implementing a new customer strategy to helping launch a new business platform, Kinetic12 has the experience to ensure success.
Organization design & process improvement
It is critical that investment companies are organized appropriately to deliver optimal results for investors. The right strategy can be quickly derailed if the company does not have the right capabilities, resources, processes and organizational structure. We help companies build the optimal operating model to thrive in the competitive marketplace and over deliver the return on your investment.