National Restaurateur Consolidates Vendors to Save Big $
Client is a casual dining chain with more than 1,000 restaurants across the United States. Over 500
of the locations are corporately owned and together have annual sales of over $1.5 Billion.
Challenge/Opportunity
Getting a handle on maintenance, repair, and operational costs of assets and finding comprehensive
cost-effective, quality services for multi-location, geographically dispersed restaurants has always plagued
the restaurant industry. Solutions are typically fragmented and limited in their ability to truly capture useful
data and deliver results. Client had long struggled with finding comprehensive and effective solutions.
The company had limited ability to track and understand the true or total cost of maintaining and operating
their assets. They lacked consistent and accurate data with which to make decisions. Each region was managed
independently and there was no sharing of best practices or identification of scalable solutions.
They relied on a network of “low-cost” inconsistent small owner/operator, single-trade vendors in individual
markets to perform facility maintenance work. Additionally, Client knew they were losing revenue due to
insufficient facility and equipment service, not performing preventative maintenance completely and consistently,
and continuing to incur escalating capital expenses year after year.
Solutions
FRG surveyed Client’s locations and identified significant opportunities for improved performance and
operations savings. FRG began by bar coding and electronically collecting service history data on thousands of
individual assets. Data was collected from a consistent and comprehensive preventative maintenance program along
with consolidated multi-trades services. Analysis of this data provided the information necessary for FRG to
recommend and implement improved equipment, optimized systems and innovative design solutions to maximize
capital expenditures and reduce energy consumption.
Client has been using FRG’s services— including extensive PM programs, mechanical, electrical, and
general trades services; project management, capital rollouts, asset data collection and management, electronic
invoicing, building and equipment commissioning, energy management programs, facilities audits, as well as
systems diagnostics and design—since 2002.
"FRG’s multi-trade capability has been a real blessing when it comes to large scale rollouts of replacement
capital equipment, retrofits and facilities upgrades. Their comprehensive “turnkey” support has resulted in
substantial savings and seamless coordination with my restaurant property teams.”
- Facilities Director for Client
Results
The impact and savings were significant. In its first full year using FRG, Client saw total facilities
cost reductions of over 20%. Over a two year period, costs were reduced by an additional 10%.
- Number of vendors in one region were reduced by 75% "and we’re accomplishing more work and of a higher
quality," commented a Regional Facilities Manager for Client.
- The company has seen a 20% reduction in replacement capital equipment spending, an energy consumption
reduction of 25%, and a 30% reduction in major repair & maintenance expense.
- Client experienced "significant savings after the implementation of energy savings programs.
We have also realized a real partnership in working to resolve long-term mechanical systems challenges in
our buildings. The effectiveness of the joint effort has also resulted in substantial savings from thorough
and pro-active preventive maintenance on the facility and equipment. My market alone compared to historical
company averages had nearly 50% fewer equipment failures.”
- Regional Facilities Manager for Client