Case study
Struggling restaurant chain reverses revenue decline with targeted marketing strategies
Interim CMO stabilizes sales while delivering a 30% reduction in marketing expenses in under three months
Situation
Following a chapter 11 reorganization, a PE firm's distressed debt team inherited a pair of bar and restaurant brands with ~100 locations across the US. While the company's balance sheet was strong, marketing had been reduced to two FTEs, and same-store sales were on a 10% decline - pointing toward a potential second bankruptcy process. Reversing the revenue trajectory and rebuilding a sustainable marketing function were critical components of turning the company around.
Candela's Role
A Candela partner assumed an interim Chief Marketing Officer role and began the process of rebuilding a sustainable marketing function, including reviving advertising campaigns, measuring performance, and doubling down on the most effective strategies. Consolidating agencies, renegotiating technology vendor contracts, and hiring in-house resources to replace lower-skilled agency labor reduced operating costs, while a new website and streamlined menu improved customer experience.
Impact
Within three months of assuming the interim role, year-over-year sales stabilized, reversing several months of declines in excess of 10%. Non-working marketing spend decreased by ~30% during the same period. The company was sold the following year to a private equity investor.
10%
Revenue Increase
$6M
Working Spend Managed
30%
Marketing Expense Reduction
