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The Ä Bar

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How to get out of the restaurant business without going West?

  • Branch

    Restaurant

Background

Laduchi Consult was approached by a partner of the “A bar” restaurant with a problem: debts are piling up, no profit, partners do not trust each other, no single vision of a recovery strategy. Meanwhile, the restaurant has all it takes: a good traffic location, expensive and stylish interior design, an imported chef.

Mission

Assess the situation and introduce crisis management and recovery strategy in the restaurant business.

Reservation

The client maintained that the salvation process cannot be trusted to an outsider.

Solution

  1. After a month of monitoring of the staff performance, it became apparent that the business owner is running the project in a wrong manner that drives the restaurant into continuing expenditures.
  2. We convinced the client that the founder needs to be replaced – to save the time and money. And for the sake of peace of mind.
  3. A temporary manager was appointed.
  4. A marketing strategy was devised.
  5. The suppliers’ pricing system was optimized
  6. Digitalized income and expenditures for better transparency to the founders

Result

According to the audit of the business, the owner has committed three most common mistakes:

  • No target audience analysis
  • No marketing strategy
  • No financial plan

It took us 9 months to bring the business back to break-even point. The restaurant became self-sufficient as we helped it stop generating the loss. Through application of the marketing strategy, we secured a traffic of loyal clientele to the “A bar” restaurant.

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