QSR - Maine Pointe · proactive source of new value creation. As a result, many restaurant companies have not focused on building a depth of supply chain expertise or transferring

QSR

Breaking through the barriers to better

growth and profitability via enhanced

procurement, distribution, restaurant

operations, and guest experiences.

MainePointe.com

Boston Calgary Schaffhausen Shanghai

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Maine Pointe drives profitable business transformation through

n Operations Excellence

n Strategic Procurement and Distribution

n Logistics

…and uniquely integrated approaches to Sustainability and Organizational Improvement.

A New PathwayA New Pathwayto Competitively Enhanced Guest Experiences, Restaurant P&L, and Corporate EBITDA

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In one client relationship

with a leading seafood chain,

Maine Pointe delivered a new

Procurement Management

Operating System, achieving

annualized savings of $5.1

million and an ROI of 5.7:1.

For many years, Quick Serve Restaurant (QSR) and Casual Dining companies have successfully diversified their guest experiences with a mix of menu offerings, dining atmospheres, and flexible pricing structures to increase traffic and maximize profits.

They strategically acquired and sold brands, with their desired geographic locations, as a method for gaining immediate-term increases in market share and sales volume.

While that approach may have produced the desired outcomes, it just

as frequently risked the value perception of legacy customers along

with causing significant operations, procurement, manufacturing, and

distribution challenges. These essential functions became increasingly

constrained as a reaction to the need to reduce costs rather than a

proactive source of new value creation. As a result, many restaurant

companies have not focused on building a depth of supply chain expertise

or transferring best practices from other industries as a means of gaining

strategic advantage.

As the competitive global landscape is reshaped, QSR and Casual Dining

companies are challenged to think and act differently – on a weekly, daily,

if not hourly basis. Lasting value can be created through a change in the

way the overall organization performs on a restaurant-by-restaurant basis.

By optimizing operations and the supply chain as differentiated drivers of

sustainable growth, company leaders can transform the results of their

continuous improvement initiatives. The menu mix can be better leveraged

toward targeted results in traffic and guest counts, satisfaction scores,

margin improvements, and distribution optimization. Real overall value

chain improvements can reduce operational complexity, enhance the value

perception of customers, and strengthen franchise development.

Restaurant managers become better able to calculate and build capacity

for meeting true real-time demand that significantly lowers costs

while increasing same store sales and securing a more consistent guest

experience. They will no longer be held hostage to reactionary or impulsive

responses to business expectations that are not validated.

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Don’t Be Fooled into Going it Alone

QSR and Casual Dining company leaders know that they need a realistic

plan to increase revenue and lower costs simultaneously – especially as

they penetrate new global markets where the competitive factors may be

less familiar and more complex.

It’s common to underestimate the importance of practical, on-the-ground

supply chain experience as a means for accelerating improvements. After

all, personnel are necessarily focused on meeting the basic day-to-day

expectations of guests and distracted from proactively addressing the root

impediments to sustainable EBITDA improvements. It’s not a capability

issue but a capacity and perspective limitation.

Companies have tended to go it alone but if they do hire an external

resource, they retain one with single, or the same, industry experience.

Trouble is, those options are what everyone else does and the result is

more of the same.

If you want to effectively differentiate your brand as well as convert your

guest population and franchisee network into brand champions, you

need to transform your business with optimized operations and a fully

integrated, sustainable supply chain. This requires the right combination

of strong company leadership, empowered restaurant management, and

a multi-industry external resource. Engaging a resource with wide-ranging

supply chain experience can put the best ‘feet on the ground’ to achieve

bottom-line results more quickly than an internal team can on its own.

At Maine Pointe, our deep knowledge in multi-industry best practices

is rooted in frontline operations experience and executive relationships

across the food industry value chain – from farm and fertilizer,

manufacturing and processing through the dining experience on

premises and off site.

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The Difference We Make

Maine Pointe collaborates with QSR and Casual Dining companies to

dramatically compress the cycle time to greater profitability, higher same

store sales and customer satisfaction, and increased market share.

We help restaurant company leaders confidently re-engineer operations

and the supply chain to transform how the brand actually operates on the

ground. Our teams have consistently delivered an engagement average

of between six to ten times ROI, with a guaranteed 2:1 ROI based on

annualized savings.

Our collaborative approach to working with clients focuses on lowering

internal and external costs, achieving greater predictability, and

strengthening restaurant service relationships. Some of our sector

successes include:

Achieving $6 million in savings from a $1 million investment across all

franchises of the largest U.S. chain of double drive-thru restaurants.

Delivering over $5 million in savings for the #2 U.S. quick-service

Mexican fast food chain along with enhancing their professional

environment through improved planning, execution, and

category leadership.

Realizing multi-category savings in excess of 30%, and annualized savings

in excess of $7 million (a 6.4:1 ROI), by transforming the procurement

focus of a major entertainment complex operator from transactional

to strategic.

In addition, responsible business practices require attentiveness to ‘license

to operate’, regulatory compliance, and risk management concerns. Our

teams integrate a bottom-line approach to Sustainability to strengthen

the sourcing, logistics, and operating standards across the value chain of

all restaurant company assets.

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Our Values-Based Approach

While there are a number of different ways for Maine Pointe to

collaborate with QSR and Casual Dining companies, we typically work

on an aggregation of multiple distribution, procurement, and operational

initiatives to deliver significant impact on the financial performance

of the business.

Implementation

n Identifies and implements operational improvements

n Transforms the global supply chain via the Total Value

Optimization model

n Aligns the company teams with the leadership’s strategic imperatives

and transformation agenda

n Delivers annualized savings, supported by the Maine Pointe guarantee

Continual Value Enhancement

n Implements new approaches and their attendant methodologies,

processes, infrastructure, and behavioral changes

n Perpetuates value creation through cost reduction, revenue

enhancement, and productivity gains

n Integrates the Maine Pointe Sustainability framework to substantiate

and leverage new sources of value creation

Our Approach Emphasizes:

n Alignment with client’s work

flow and organization culture

n Integrity-driven assessments

n Thorough, rigorous

implementation

n Transparent and

accountable results

n Regular progress reports

and meetings

n A bottom-line commitment

to Sustainability

n Collaborative knowledge

transfer

n A focus on the client team

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“We brought Maine Pointe

in to help us review our

key food and beverage

categories, and to identify

cost savings opportunities

along with a sustainable

procurement process.

Their unique approach to

organization and capability

development has driven

significant cost reductions –

including a 6% annualized

reduction in total

food cost.”

Adam NoyesSenior Vice President Supply Chain

Checkers Drive-In Restaurants, Inc.

Analysis

n Utilizes interconnected diagnostic approaches to understand the

company’s strategies and priorities

n Enhances investment decisions through the identification of value

creation opportunities, organizational and productivity improvements,

and guidance on risk areas

n Delivers an objective, action-oriented, and detailed assessment of

the current or potential supply chain – including its functional and

departmental processes

n Identifies and quantifies potential bottom line asset improvements, as

well as working capital risks and opportunities

n Discerns the appropriate value creation opportunities to be factored into

ongoing and future budget decisions

n Maps out a clear pathway for seizing opportunities that will achieve the

projected ROI in a full engagement

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About Maine Pointe

Maine Pointe is an operations management and implementation firm

that is rapidly becoming a leader in sustainable global supply chain

transformation. We help clients maximize profits and improve cash flow

to free up working capital while developing a sustainable approach to

business practices.

Maine Pointe accelerates value creation by leveraging our frontline

operations expertise across multiple industries to break through the

barriers to improved growth and profitability. Our methodologies,

processes, and collaborative knowledge transfer capabilities help

transform how QSR and Casual Dining companies actually operate

on the ground.

Maine Pointe teams work with all personnel to seize opportunities that

drive significant cash, profitability, and EBITDA enhancements to the

bottom line while improving quality, cleanliness, and the overall

guest experience.

Select QSR and Casual Dining clients:

Captain D’s Seafood KitchenCheckers Rally’sDave and Buster’sDel Taco

“Maine Pointe delivered

nine training modules from

‘Supplier Conditioning’ all the

way through ‘Implementing

Supplier Agreements’ and

‘Improving and Building

Supplier Relationships’.

These modules will help us to

monitor current and future

market conditions, maintain

quality and consistency,

and improve the food costs

throughout our restaurant

system.”

Paul Murphy

President and CEO

Del Taco Restaurants

U.S. (Headquarters):

Independence Wharf

470 Atlantic Ave., 4th floor

Boston, Massachusetts 02210

Telephone: 617.273.8450

Fax: 713.467.9921

William (Bill) Forster

Chief Consulting Officer

Cell: 617.894.2838

[email protected]