A growing restaurant chain partnered with AdvanceX in May 2023 to improve profitability and expand its presence on Swiggy and Zomato. The brand had 28 outlets and was struggling with high ad costs, customer complaints, and operational inefficiencies.
Challenges
- High advertising costs on Swiggy and Zomato, impacting profitability.
- Difficulty managing online orders across multiple locations, leading to inefficiencies.
- Struggles with menu visibility, offline store issues, and maintaining strong customer ratings on aggregator platforms.
- Lack of adequate support for addressing customer complaints and queries.
These operational and strategic challenges created obstacles to both growth and profitability.
Achievements After Association with AdvanceX
- Growth in Outlets: Expanded from 28 outlets to 38 outlets in just 1 year.
- Increased Contribution Margin: Boosted contribution margin by more than ₹1 crore on total sales of less than ₹12 crore.
- Improved Ad Efficiency: Reduced ad spend as a percentage of sales from 23% to 15%, while improving Zomato ROI from 1.9 to 3.9 and Swiggy ROI from 2.9 to 5.1.
- Optimised Discount Strategy: Decreased discount percentage from 20% to 15%, without affecting sales volume.
Operational Improvements
- Resolved 8,000+ live order issues.
- Reduced downtime from 3% to less than 1%.
- Cut kitchen prep time from 15+ minutes to 12 minutes.
Aggregator Platform Achievements
- Promoted from a City Chain of Accounts to a National Chain of Accounts on Swiggy and Zomato.
- Elevated to Senior Key Chain of Accounts (SAM) status, a higher level of support and visibility.
Why It Matters
This brand’s success story demonstrates the profound impact of strategic partnership and operational excellence. By leveraging AdvanceX’s deep industry insights, hands-on support, and data-driven optimizations, they not only expanded their presence but also significantly improved profitability.
