Byron Hamburgers Are Getting Smaller

Pomanda takes a look at Byron Hamburgers’ recent restructuring of their business

– and how it shows that a company may have to shrink before it can grow.

Upmarket burger chain Byron has just announced its intentions to restructure the business as it considers the closure of underperforming outlets. Despite revenues exceeding £80m for 2016, profits before tax were a skinny £194k due to a combination of increased competition, higher wage bills and increasing business rates.

The group has hired the advisory services of KPMG to assist with its plans to cut costs and to develop new growth opportunities. Rather than be critical, we should give Byron credit for this move: it takes bold management and a parking of egos to make such a public decision.

Growth is not simply about reinvestment. Sometimes a business has to shrink before it can grow profits. Offloading underperforming assets and avoiding investments where earned returns are less than the cost of capital are essential considerations for any CEO.

Pomanda have created a platform where business owners can confidentially monitor key metrics for their firm and their competitors, value their business and should the need arise, identify advisers and consultants who can help when the difficult decisions have to be made.

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