Industry characteristics
- Multiple outlets running in parallel with markedly different cost structures;
- Scattered ingredient purchasing across changing suppliers, making documentation difficult;
- Labour and rent dominate costs and are relatively fixed;
- Revenue structures are complex where franchising and partnerships are involved.
Key exposures
- A group ledger with no per-store accounts, so you cannot tell which outlet earns;
- Undocumented or non-compliant ingredient purchases, distorting costs;
- Unclear timing for recognising franchise fees, deposits and brand royalties;
- Cash and online receipts mixed together, with no traceable route for funds.
How we work
- Build a per-store accounting system aggregating revenue, ingredients, labour, rent and amortisation;
- Review purchasing channels, favouring suppliers able to provide compliant documentation and phasing out scattered buying;
- Separate the accounting rules for directly operated and franchised business, fixing recognition points for each revenue type;
- Unify collection channels and the route for concentrating funds so cash flow is traceable.