A Vietnam-based Private Equity Fund was looking to exit its investment in a fast growing restaurant chain in the next 2 years and was looking for assistance to improve operational performance and margins prior to the exit.
We worked closely with the senior management of the restaurant group over a two-week period to assess key value creation levers that could lead to improved store level margins as well as looking at the entire organizational structure. The project included:
Visits to a selection of stores and 2 central kitchens in Hanoi & HCMC respectively
Interviews with all key senior and middle-rank executives in both cities as well as store managers and operational directors
Review of company financials and benchmark against other leading groups in similar emerging markets
Development of KPI’s for each management function to enable better evaluation of performance and tie to company goals
We identified a number of initiatives that eventually improved overall company margins by a minimum of 2%. The organization was restructured to better support front line store managers. The Fund exited 18 months later at a 9x return – one of its top two investments ever.