TMAD Embraces Change To Emphasize Franchisee Profitability
The Fast Casual Teriyaki Shop Concept is rolling out a new menu pilot and packaging to reduce costs for its franchisees!
With the impressive growth that the fast casual teriyaki shop concept has seen in 2019, the need to support the profitability of the rising number of franchise owners entering the system was top priority. And as rising labor costs across the country continue to affect restaurants and businesses of all kinds, TMAD has made it a priority to explore all available ways to reduce prime costs system wide.
“We need to be as proactive as we can to reduce costs wherever we’re able to effectively combat these kinds of external forces that are beyond our control.” – Jodi Boyce, Executive VP of Marketing
With EVP of Logistics Joe Gordon spearheading the initiative, the fast casual Teriyaki Shop concept has begun exploring everything from new packaging to refining its recipes to uncover areas where the brand can be nimble without compromising on the quality or taste of its food in any way. This company-wide analysis spans across TMAD’s finance, analytics, operations and marketing teams, with the entire company working together toward a goal of reducing prime costs by 5-10% of sales. The brand has also been able to leverage its rapid growth to find economies of scale with production and explore establishing more all-encompassing contracts with larger vendor partners.
“Every business decision we make at Teriyaki Madness is done with our franchise partners in mind. That’s the best way to make our business grow,” said Gordon. “Reducing cost of goods sold and prime costs is a win-win for all parties – shop owners become more profitable faster and can then open their next shop sooner, which lends to the overall growth of the brand, bringing about more profit and success for all.”
