Developing a value-enhancing business design for a UK hospitality chain
Laurel Pub Company was formed following the sale by Whitbread of 2,100 pubs, comprising 1,500 leased pubs and 600 managed directly. In early 2002 the 1,500 leased pubs were sold. This left the original head office with a significantly reduced income and workload, meaning that a redesign of the corporate function was required. Reliable information was needed quickly to make and implement critical business decisions.
A complication was that the future strategy of the company was far from clear. Possibilities varied from being acquired by another company, to growth through a major acquisition or merger by our client. The HO requirements would change significantly under these scenarios.
PA analysed the current strengths, weaknesses and challenges facing the organisation, and subsequently determined what future structure would best fit with a possible sale of the business at any time. PA reviewed current processes and organisation culture in defined processes to identify where and why procedures were failing.
A second project aimed to increase compliance with standard procedures, improving efficiency and ensuring legal compliance. This also achieved large cost savings by, for example, having pubs using the correct suppliers and making correct payments to pub staff. The bonus structure and KPIs used were also reviewed and recommendations for improvement made.
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