In a challenging environment where continued concept proliferation has given consumers countless choices and fragmented their spending, winning in the restaurant sector requires standing out and truly connecting with consumers on a level that builds differential loyalty. To achieve this, our leaders and experts work with clients to design and implement strategic programs based on market insight and in-depth analytics. We have a strong track record of creating significant value for our clients in both their company-owned and franchised operations, resulting in comp sales and average unit volume (AUV) growth, improved efficiencies and cost reduction, and higher returns on capital.
Key Questions and Challenges
Our experienced professionals have a deep understanding of marketplace dynamics and issues facing restaurants. Some of the areas where our clients are turning to us for guidance include the following:
- How do we keep our concept fresh and relevant in today’s competitive marketplace?
- How can we drive growth among key consumer segments, such as millennials and baby boomers?
- How can we better manage our pricing and promotional strategies to mitigate margin pressure while still conveying a positive value perception?
- How do we evolve our marketing mix to align with consumers’ changing purchase criteria and how they consume media? Is a loyalty program right for us?
- What is the best deployment of capital, given strategic priorities and target return levels?
- How can we better work with our franchise base to be as productive as possible?
- What is the opportunity for incremental store growth within existing and new markets (domestic and international)? What is the right strategy to realizing this growth and mitigating the inherent risks?
Examples of Our Work
To learn more about how we help clients create value in the restaurant sector, please refer to these insights and case examples:
- L.E.K.’s clients benefit from our leading-edge insights. For example, our research has revealed important differences in how consumers make restaurant choices across generations and how restaurants can more effectively identify in which consumer groups they generate more and less affinity. Read more
- For a private equity firm considering an investment in a casual dining restaurant chain, L.E.K. performed commercial due diligence to validate the investment thesis and provide an objective view of the growth potential for the target business. The result was a successful acquisition, with store count and operating profit up by double digits.
- L.E.K. assisted a quick-service restaurant differentiated by its fresh and quality ingredients at low prices in assessing its procurement strategy and approach. With our help, the chain identified opportunities to potentially save millions annually. Read more