The new major shareholder of the well-known restaurant chain with 27 shops existing 8 years in Moscow and St. Petersburg became one of the largest Russian banks. According their strategy they planned to open 5-7 new shops annually.
What did the client want:
After an opening several new shops, some of which proved itself operationally unprofitable with no return on investments, the shareholders decided to reorganize investment process.
In the course of the analysis it had been found that the main reason for operational losses was the incorrect, and sometimes extemporaneous footfall estimations for a new shop. To overcome the problem the new method for traffic and footfall prognosis and estimation was designed, which was verified on the existing shops. The method was embedded into the investment process, which in turn was re-engineered: the decision tree and decision making procedures were modified and the method for a drafting of a business plan was corrected as well.
As a result of re-engineered investment process the investments errors were minimised, which allowed to successfully proceed with the early approved strategy. The new method not only proved itself feasible by opening a new shop, but also allowed to reduce the costs for the selection of a new shop location and to shorten time for a business plan calculation.