The Situation
An F&B group operates 12 restaurants across the Klang Valley and generates approximately RM35 million in annual revenue. Several outlets are crowded during weekends and delivery-platform orders continue to increase.
Yet operating profit has fallen from approximately RM4 million three years ago to less than RM1 million. Food costs have risen, wages have increased, rents are higher and delivery platforms take significant commissions.
The menu has expanded from approximately 65 items to more than 120. Every proposed solution creates another concern: pricing, portions, manpower, menu simplification, promotions and outlet closures all have consequences.
A busy restaurant can therefore create a powerful illusion of success. The harder question is whether demand is being converted into sustainable economic returns.