Case Study: How One Texas Eatery Turned a 1% Loss Into a 4% Gain—In Just Four Months
For many years a family-owned restaurant in Texas had been a cherished destination for both locals and travelers. But after the pandemic, everything changed. Food prices soared, labor costs rose, and fewer customers came through the door. Month after month, the owners watched their net margin slip into the red, losing 1% on every dollar. With each shift, uncertainty grew: not just for the owners, but for everyone on the team.
In the restaurant world, when business suffers, everyone feels it, from the kitchen to the dining room. Fewer guests can mean quieter nights, fewer shifts, and smaller tips. But when the restaurant thrives, so do the people who make every meal and every guest experience memorable.
That’s when the owners turned to our KAC advisory team for a new way forward
A Story of Small Changes, Big Impact
When we began working together, the restaurant’s challenges were clear: razor-thin margins meant that every penny mattered. Instead of promising dramatic overhauls (no, we didn’t tell them to put avocado toast on the menu), we focused on a simple philosophy: tiny gains in multiple places can add up to major results. And when the numbers increase, the whole team benefits.
What We Did: Step by Step Recovery
- Know the Numbers:
We helped the owners dig deep into their financials, closer than a line cook eyeing the last slice of pie. Together, we tracked food and labor costs, delivery fees, insurance, and reviewed even the smallest line items. By reviewing these numbers line by line, we revealed where small, strategic cuts could be made. More importantly, we emphasized knowing the true cost of each plate (not just a gut feeling, but real, comforting data). Suddenly, decisions about what to promote or adjust became a lot less stressful—and a lot more profitable.
- Adjustments for smart wins:
One surprising discovery: letting guests swap fries for other vegetables—without an upcharge—was quietly draining profits. The solution? A reasonable upcharge for those substitutions. It was like fixing a leaky faucet; a simple change that finally plugged a slow, steady drip from their margins.
We also spotted another culprit: inconsistent portion sizes. Those “generous” extra handfuls were costing more than anyone realized. So, we encouraged the team to “wow” guests with exceptional service and ambiance, not just more fries. And for those on the floor, we supported server training to help boost check averages and promote higher-margin items—after all, bigger checks can mean bigger tips, making every upsell a win-win.
- Consistency:
Monthly advisory meetings kept everyone focused and accountable, ensuring those small victories didn’t get lost in the daily rush or the usual kitchen chaos. Instead of drowning in details, the owners could finally breathe and keep an eye on the big picture.
The Results
After four months of close collaboration, the numbers told a new story:
Before advisory services: 1% monthly net loss
After 4 months: 4% monthly net gain
That’s a 5% positive swing in net margin, a monumental difference in an industry where a single percentage point can mean the difference between closing and surviving. This turnaround gave the owners the breathing room, stability, and hope they needed to keep the doors open. The best part? When the business does better, everyone—from the kitchen to the dining room—gets to share in the success.
We’re still working with them, aiming for even bigger wins (and maybe a little more sleep at night).
How much money are you leaving on the table?
Step 1: Book a free advisory session today and get ready to reignite your restaurant’s profits.
Step 2: Download our Menu Cost and Profit Analysis tool
