Case Studies
Business Advisory
A prominent food services company was in financial distress. Faced with an average 6% year-on-year decline in earnings, significant liquidity pressure and impending default on bank debt the company needed a turnaround solution.
The Challenge
- A weakening brand
- Unfavourable year-on-year operating results
- Key positions were inadequately staffed
- Poor merchandising
- Weak inventory controls
- Outdated IT platforms
- Key equipment in poor condition
- Below standard food operation conditions
The Solution
- ERG immediately conducted a comprehensive operational review involving executive management, process owners and report users with focus on business stabilization and turnaround
- With an understanding of the company’s short-term financing and cash-flow requirements, we assisted the finance team in implementing short-term cash-flow forecasting and monitoring models
- Aligned product portfolio to target market preferences with focus on variety, price point and margin
- Re-designed shop floor layout to support a widened range of merchandising strategies