This PE-owned restaurant business has 200 locations specializing in coastal inspired seafood and tacos. The restaurant industry is facing increasing pressure on margins due to sluggish growth, changes in guest expectations and demand, increased labor costs and legislative pressures. In response, the client challenged itself to dramatically improve the way it purchases goods and services and manages supply chain activities in order to reduce costs and be more competitive in the marketplace.
Based on Maine Pointe’s highly successful track record helping similar companies drive efficiencies and cost improvements through strategic sourcing opportunities, the PE owners and client executive leadership team selected us to help achieve their goals.
In an industry where margins are slim and competition furious, the company had little strategic sourcing experience and was largely unaware of industry best practices. It lacked people, process, information, tools and templates, was reliant on largely manual process and the supply chain team tended to handle procurement opportunities through day-to-day tactics.
The company had more than 170 individual suppliers with many items under contract. Executives valued long- term supplier relationships and viewed their commitments to them as a key attribute of their culture. This had led to an environment where long-term suppliers felt entitled and resistant to innovation and internal stakeholders were unwilling to consider either revisiting these contracts or to begin negotiating within the contract cycle, regardless of potential savings.
Maine Pointe designed an implementation plan to achieve cost savings across a wide range of categories and equipped the company with the ability to negotiate itself away from a captive distributor. Applying a ‘guest first’ approach, we:
As a result of the work we did, the company has embraced the need to implement best practices. The PE firm has since introduced Maine Pointe to another restaurant organization that is in need of specialist support.
Transforming procurement and introducing a ‘guest first’ approach helped our client: