Business Case: Multi Unit Restaurant

Multi Unit Restaurant

Result: Added $500K to $2M in profit by standardizing unit economics per location

The situation
Multi unit restaurant groups often manage by total sales instead of per location performance. Industry data shows average profit margins for multi unit operators hover around 9 percent, largely due to inconsistent food and labor economics across locations.

What we did
We applied the CFO Practice unit economics framework by location.

How it worked step by step

1. Calculated contribution margin per location after food and labor

2. Compared each unit against the same economic model

3. Identified locations that were busy but structurally unprofitable

4. Isolated drivers such as food waste, staffing inefficiencies, and menu mix

5. Standardized targets for food cost, labor per shift, and sales per labor hour