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Profitability Coaching

Overview

Seven years into owning the business, Rally’s owner needed to take a step back to pursue other endeavors. This meant an increase in labor costs to be able to delegate more responsibilities, but the business lacked the profitability to do so. I was charged with improving overall profitability and empowering the management team so that my client could be more hands-off.

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Approach

Instead of just raising prices across the board, we did a menu pricing analysis and strategically raised prices, removed unpopular/unprofitable items, and added new items with better profit margins. I worked with the management team at Rally to compare pricing from existing vendors, and to explore new vendors with better pricing and delivery terms. I then worked with the management team to implement systems to track and budget prime costs on a weekly basis, reporting back to the owner. After reviewing various incentives aimed at increasing sales and staff retention, the owner opted for an annual bonus to all employees based on profitability.

Results

Rally sales increased 25% the following quarter, which remained steady throughout the entire year. We reduced prime costs by more than five points and improved the net profit margin nearly 300% compared to the year before. A year later, the management team is still in place, staff turnover is 0%, and the operation is running smoothly.

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Client Review

"Angela was super insightful and a pleasure to work with. If you are a small business owner ( in F&B) looking to audit, implement or create new operational systems to help sustain or grow your business, look no further!"

- Meredith Waldman, Owner, Rally

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I'm here to help!

Opening a new restaurant or keeping one going can be tough. I know – I did it for 12 years.
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