Practus’ CFO Solutions assisted the restaurant chain in creating dashboards on operating indicators resulted in more targeted marketing spending, resulting in a ~3% increase in take-out and delivery food sales.
|Client||Industry||Ownership||Management||No. of Employees||ROI||Size||Project Duration|
|The Restaurant Chain||Food & Beverage (QSR)||Private; PE-backed||Professional||~250||4.8x||~$2 million||30 months|
About The Company
With 50 stores, Indo-Leb is a leading Indo-Lebanese specialty Quick-Service Restaurant (QSR). a mix of company-owned and franchised locations. In the year 2000, Indo-Leb, a seasoned restaurateur, opened his doors. It has a proven track record of developing many restaurant businesses. The company was purchased by a private equity firm.
Practus’ Role in CFO Services
- The end-to-end CFO would be in charge of establishing finance and accounting functions.
- Inventory management and an ERP system were implemented, as well as interaction with the accounting system.
- Creating cross-functional critical accounting policies and thorough SOPs (procurement, supply chain, and finance).
- Developing dashboards for talks with the CEO and PE investors and defining critical indicators to track business performance.
- Assist in the creation of budgets and quarter predictions.
Impact Delivered in CFO Services
- Food cost reductions were a crucial factor in a ~2% increase in profitability
- The average DPO (creditor pay-out period) increased by 40%, resulting in improved creditor relations, longer credit periods, and more favorable pricing negotiations.
- Dashboards on operating indicators resulted in more targeted marketing spending, resulting in a ~3% increase in take-out and delivery food sales.
- Budgeting and tracking business success took 30% less time each month.
- Perishables with a ~50% reduction in DIH (Days Inventory Held) have a beneficial effect on the working capital cycle.