Pressure-Test Your P&L

Pressure-Test Your P&L

by Aaron Allen
Restaurant Consultant, Speaker & Industry Analyst
Aaron Allen & Associates

Every restaurant bleeds — it’s simply a question of where and how much.

Just as banks and governments occasionally conduct stress tests to model scenarios and validate the stability of their systems under pressure, restaurant chains (and their investors) should endeavor to objectively pressure test their P&L — with increasing rigor and frequency.

By performing a gap analysis and applying industrial engineering practices across functional areas, it’s possible to uncover areas of opportunity and quantify where value is trapped or hidden in a business. We look at major cost drivers (historically, current-state, and future-state) to determine how those can be made more efficient. While the aim is to improve profitability and ensure a business is as productive as possible, it’s also about being confident in the blend of what the concept, brand, and consumer needs.

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