Freshly Does It is a fast food business that now operates four Subway franchises in Greater Manchester. But when the company first came to Champion for help with their accounts, there were just three franchises within the group and the company’s accounts did not differentiate between the three locations, making it difficult for Freshly Does It’s management team to analyse the true commercial performance of each branch.
To provide improved commercial clarity and planning, our expert team ensured that the accounts for Freshly Does It separated each branch as individual profit centres, preparing the franchise operation to scale up to more branches. This meant that the management team could track profitability for each franchise and implement any operational changes required to improve margins or cut costs.
Detailed management information, including data on sales, purchasing, wages and margins, is now provided for each of the franchise locations on a monthly basis.
To help the client understand their monthly financial reporting and make commercial decisions based on this information, we hold monthly face-to-face meetings that coincide with when the client is visiting the local branch. Here, the monthly financial pack is discussed and we’re able to advise the client on adjusting forecasts and any cost savings or expenditure required, whilst delivering proactive tax advice.
More recently, online food ordering through third-party providers such as Deliveroo and Uber Eats has complicated Freshly Does It’s accounts. While each branch’s in-store activity can be monitored for profitability, aligned to sales performance, purchasing and wage costs etc., payment through third-party online ordering is received up to two weeks later.
At Champion, we adjusted our service to accommodate this additional layer of complexity and ensure we continue to provide real-time, accurate information within the monthly management accounts. We’ve also completed an analysis of the profitability of online ordering through third-parties for each branch, which concluded that, despite the additional costs involved, there is sufficient additional profit in online ordering to justify this element of the business model.
To find out more, contact your local Champion Accountants office: www.championgroup.co.uk/contact-us/