Case study
Reducing spend to save the dough
Struggling National Pizza Chain saves $2M in G&A expenses and improves operational efficiency with a detailed analysis and new strategic prioritization, implementation timeline
Situation
A $300M national pizza chain had recently emerged from bankruptcy and was continuing to struggle to grow the top line. Cost cutting initiatives implemented during Ch. 11 did not lead to desired outcomes. In fact, in the 2 years leading up to this engagement, G&A expense increased from ~8.5% to ~11% of sales. Our team was brought in to review corporate G&A spend and identify areas for additional savings.
Candela's Role
We completed a detailed review of Corporate G&A spend at the line-item level and identified a complex/expensive organizational design and the absence of common IT processes/infrastructure as the key drivers of inflated G&A spend. The review process included trend analysis, benchmarking, collaboration with functional subject matter experts and interviews with key leaders in the organization. As part of this process, the team also developed an opportunity prioritization and implementation timeline.
Impact
Ultimately, $2M of G&A savings were identified. Additionally, the team uncovered opportunities to reduce spend within the store portfolio through SKU rationalization, revisions to field manager spans of control, tighter controls on procurement and a shift in marketing spend to generate higher ROI.
$500k
Finance & Accounting Savings
$700k
IT Savings
$400k
HR Related Savings
