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Revenue Growth Management Transformation of a Quick-service Restaurant Chain

Student: Mikhail Larkov

Supervisor: Alexey Poroshkin

Faculty: Graduate School of Business

Educational Programme: Production Systems and Operational Excellence (Master)

Final Grade: 9

Year of Graduation: 2024

The thesis describes a revenue growth management transformation launched within a consulting project for a client — one of the largest fast food restaurant chains in Russia. Given the uncertainty in the Russian public dining market, structural challenges with price accessibility, labor shortages, aggressive actions by competitors, and internal issues (presence in less profitable formats, lack of advantages in online sales channels, and "exhausted" opportunities for organic growth), the client is unable to realize its strategic ambition to become the most preferred fast food restaurant network for Category XX enthusiasts. Consequently, a comprehensive transformation program is required. The project's goal is to formulate the target state of the revenue growth management (RGM) system that will allow the client to increase its turnover by 1.3-1.5x by 2026. The diagnostic proposes a comprehensive approach, combining an analysis of organizational maturity using the McKinsey OEI methodology, detailed analyses of key revenue growth levers (BCG RGM approach), and a panel study of the brand funnel involving several thousand respondents. The diagnostic results have identified a set of development areas, which are then prioritized depending on their impact on turnover (influence on the overall brand funnel conversion and achievable perception ambitions by visitors). The target RGM model can increase retail turnover by the stated amount and consists of 8 blocks: strategic ambition, 4 revenue growth levers, and 3 key enablers. The work details the target state of one of the levers, which is expected to contribute up to 25% increment in retail turnover (RTO) — the loyalty program and management of personal offers. Described are the necessary product improvements in terms of point mechanics and related enhancements, as well as the establishment of a full-fledged customer value management function: it describes the target process, necessary organizational changes, and an approach to managing performance — evaluation of the increment based on pilot and control groups.

Full text (added May 15, 2024)

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