Given rising interest rates, lingering inflation concerns, global tensions, financial instability in China, and a looming commercial real estate downturn in the U.S., the prospects for economic growth are significantly jeopardized. Consequently, foodservice CEOs find themselves under immense pressure to enhance sales and sustain margins. To find your own best way through, remember: “The better the question, the better the answer.” Here are some of the questions the best C-suite executives we know are asking of themselves and their organizations.

1. 10 Questions
for Restaurant CEOs
Planning for 2024
November 2023
AARONALLEN & associates
GLOBAL RESTAURANT CONSULTANTS

2. © 2023 Aaron Allen & Associates | www.aaronallen.com 2
Given rising interest rates, lingering inflation concerns, global tensions, financial instability in China, and
a looming commercial real estate downturn in the U.S., the prospects for economic growth are
significantly jeopardized. Consequently, foodservice CEOs find themselves under immense pressure to
enhance sales and sustain margins.
Boards, rightfully so, are asking questions that require agility and muscle flex. Fortunately, skilled
captains are not commanding entirely at the mercy of challenging circumstances and limited capacities.
Much like a sailor harnesses the wind and a surfer slides so smoothly above and below the turbulent
waters, executive teams can turn chaos into a ladder for their organizations.
As the old saying goes: that which doesn’t kill you only makes you stronger.
To find your own best way through, remember: “The better the question, the better the answer.”
Here are some of the questions the best C-suite executives we know are asking of themselves
and their organizations.

3. © 2023 Aaron Allen & Associates | www.aaronallen.com 3
WHAT SHOULD WE DO ABOUT CAPEX?
How much CAPEX should we
plan on comparative to “normal”
years prior basis?
Should we expect the same or
different MOIC / IRR? Why?
How do we help the board and
shareholders see the wisdom in
our choices?
The top-quartile is investing
considerably more due to openings
and investments in technology and
new formats. It can be exponentially
beneficial to have an objective outside
view to help imagine and craft a new,
more compelling future for your
company and support with the
allocation of resources towards those
projects with the optimal
risk-reward ratio.
1
TOP-QUARTILE INVESTING 35% MORE THAN THE MEDIAN
AMONG U.S. PUBLICLY TRADED RESTAURANT CHAINS
Source: Aaron Allen & Associates, U.S. public companies
Notes: The data for this chart is redacted or partial, full information is provided to clients
0%
5%
10%
15%
20%
25%
CAPEX
(%
of
Revenue,
TTM
July
2023)
Median

4. © 2023 Aaron Allen & Associates | www.aaronallen.com 4
HOW IS OPEX CHANGING?
How will our OPEX change if we
carry on the way we are (in the
face of anticipated cost inflation
for food and labor)?
Will we be able to continue to
raise prices?
How long will the consumer
tolerate inflation before traffic
starts declining?
The consumer continues to favor
Food Away From Home even in
the context of high inflation.
CEOs are starting to face tricky
macroeconomic trends with
inflation easing but economic
growth slowing down.
2
Read more: https://aaronallen.com/blog/restaurant-inflation
FOOD AWAY FROM HOME PREDOMINANCE SURVIVES
HIGH INFLATION
30%
40%
50%
60%
70%
Share
in
Food
Spend
(Inflation
Adjusted)
Food At Home
Food Away
From Home
0%
5%
10%
15%
Jan-18 Jan-19 Jan-20 Jan-21 Jan-22 Jan-23
Inflation
(YOY)
Food Away
From Home
Food At Home
COVID Pandemic High Inflation, FAFH Recovery
Source: Aaron Allen & Associates based on public data

5. Suppliers
Multi-Brand
Portfolios
Investors
Restaurant
Chains
Technology
Companies
FIND
PROFITABILITY
LEAKS
We look at major cost drivers (historically, current-state,
and future-state) to determine how those can be made
more efficient.
Pressure Test the P&L | Labor Optimization Strategies |
Early Adoption of Technology | Menu Strategy | Gap
Analysis | Industrial Engineering | Operational
Effectiveness | Convenience Engineering |
Drive-Thru Performance
PERFORMANCE OPTIMIZATION

6. © 2023 Aaron Allen & Associates | www.aaronallen.com 6
WHERE SHOULD WE MAKE
TECH INVESTMENTS?
What should we really be investing in technology and how
do we prioritize where to focus those investments?
How much of this is going to be outdated before we install
it and how much will actually create long-term strategic and
financial advantage?
What factors should weigh the heaviest for us in the
decision matrix?
How can we benefit from AI and robotics?
3
Read more: https://aaronallen.com/blog/technology-in-restaurants

7. © 2023 Aaron Allen & Associates | www.aaronallen.com 7
SHOULD WE BE SEEDING NEW MARKETS?
Over the next years, the bulk of
global foodservice growth will
come from outside mature
markets. It’s time to find where to
go and how.
What are the fastest-growing
segments in the emerging
markets of interest?
How should we adapt our brand?
Should we go at it ourselves
or partner with a local player?
Case Study: The LSR segment in the
UAE is highly competitive. Over the
last five years, only a few (and some of
the larger) categories have grown
above average. But the future doesn’t
always evolve like the past. The
fastest-growing segments are
changing, and there are opportunities
outside the attrition of the largest (and
traditional) categories.
4
Source: Aaron Allen & Associates based on industry sources
Notes: The data for this chart is redacted or partial, full information is provided to clients
INTERNATIONAL CHAINS DRIVING GROWTH IN THE
LIMITED-SERVICE RESTAURANT SEGMENT IN THE UAE
-4%
-2%
0%
2%
4%
6%
8%
10%
Pizza Burger C-Stores Chicken Latin
American
Middle
Eastern
Seafood Bakery Other Ice
Cream
Asian
Sales
CAGR
(2017-2022)
Limited
Service
Restaurants
Limited-Service Average

8. C R I S P , C L E A R , G L O B A L
RESTAURANT RESEARCH
Backed by decades of experience across all functional areas of
chained foodservice operations, our market research services
(including restaurant market studies, TAM, consumer trends,
competitive analysis, and more) help combat bias and inertia,
surfacing the insights executive teams need to make informed
decisions before launching new products, profit centers, and
features, expanding into new formats, channels, and markets, or
investing in new technologies, concepts, and brands.
Market Landscape
Consumer Trends
Country Reports
Competitive Landscape
Gap Analysis
Expansion Planning
Channel Strategy
State of the Industry
Size of the Prize
Opportunity Identification
We help our clients understand
emerging categories, evolving
purchasing behavior, and the
conditions — and competition —
in existing and expanding markets.

9. © 2023 Aaron Allen & Associates | www.aaronallen.com 9
HOW DO WE GROW IN
THE CURRENT MARKETS?
Where is the real and sustainable growth?
Cloud/virtual/dark kitchens?
Smaller footprint locations with improved ability to
service off-premise?
New locations in smaller markets with less
competitive saturation?
5
Read more: https://aaronallen.com/blog/what-to-do-when-sales-are-down

10. © 2023 Aaron Allen & Associates | www.aaronallen.com 10
HOW CAN WE OPTIMIZE OUR PERFORMANCE?
What’s right for us, and how do
we build a compelling and brand-
centric case for the future of the
industry and the role of our
company in it? This can cover
everything, including product,
people, process, facilities,
financing, and franchising.
What is the right mix
between growth and expansion
versus performance
optimization? Remodels versus
scrape and builds? An asset-light
model versus investments in
automation?
The aim is to improve profitability and
ensure a business is as productive as
possible, but it’s also about being
confident in the blend of what the
concept, brand, and consumer need.
6
Read more: https://aaronallen.com/blog/restaurant-profit-and-loss
-40%
-30%
-20%
-10%
0%
10%
20%
30%
40%
Net
Profit
Margin
MARGINS COMPRESSED FOR RESTAURANT CHAINS BUT
SOME MANAGE TO OUTPERFORM
Highly Franchised Moderately Lightly Franchised
Source: Aaron Allen & Associates, U.S. public companies
Notes: The data for this chart is redacted or partial, full information is provided to clients

11. Suppliers
Multi-Brand
Portfolios
Investors
Restaurant
Chains
RESTAURANT
STRATEGY
Now is the best time to leapfrog forward and ahead of
competitors of today and tomorrow.
Opportunity Identification and Sizing | Business & Brand
Strategy | Investment Thesis Ideation | Sourcing Capital
and Concepts | Channel and Category Development
Portfolio Strategy | Marketing Strategy
Labor Optimization Strategies | Early Adoption of
Technology | Menu Strategy | Gap Analysis | Industrial
Engineering | Operational Effectiveness | Convenience
Engineering | Drive Thru Performance
GROWTH & EXPANSION
PERFORMANCE OPTIMIZATION
Technology
Companies

12. © 2023 Aaron Allen & Associates | www.aaronallen.com 12
HOW CAN WE GET
(AND STAY) A STEP AHEAD?
Is there really any new way to outsmart the competition with
data science, advanced analytics, industrial engineering,
experience design, and long-term investments?
Should we endeavor to do that ourselves or hire in help?
Who actually does that sort of work and also understands
how to apply it in a practical way in a multi-national
foodservice operating environment?
7

13. © 2023 Aaron Allen & Associates | www.aaronallen.com 13
SHOULD WE CONSIDER M&A?
With so much talk of
inorganic growth via M&A, what’s
really reasonable for our business
(and what can/should we try to
get the board on board with)?
If you are evaluating a foodservice
acquisition target, we recommend you
don’t skip due diligence. Without
exception, the process reveals new
perspective and insight across
functional areas (from the efficacy of
marketing and brand strength to how
the P&L may change under different
scenarios) that will contribute to
improved business strength and
performance.
8
IN 2023, U.S. RESTAURANT M&A IS DIVERSE
ACROSS SEGMENTS
FULL SERVICE
Garnett Station
Partner (ND)
Xperience
(ND)
QSR
SPB Hospitality
(Merger)
Area 15
Ventures (ND)
Area 15
Ventures (ND)
Meritage
(25 units)
TECHNOLOGY
Chowly
(ND)
FAST
CASUAL
1000 Degrees
Pizza (ND)
COFFEE, BREAKFAST
& SNACKS
PG Growth Opp.
(ND)
Main Juice
Company (ND)
SBE Hosp.
Group (ND)
Innovative
(ND)
Darden
($715m)
UrbanPiper
(ND)
Source: Aaron Allen & Associates
*Notes: 2023 as of July
OTHERS
Mohari
($550m)
FRANCHISEES
Flynn
[Australia]
Southpaw
(40 units)
High Bluff
(81 units)
IPO
($318m raise) ($43m raise)
Read more: https://aaronallen.com/restaurant-mergers-and-acquisitions

14. READY TO GET
STARTED?
We help middle-market foodservice companies
and investors with both buy- and sell-side M&A
advisory services.
Deal Sourcing and Target Identification | Investment
Thesis Ideation | Commercial Due Diligence
Operational Due Diligence | Value Creation
Strategies Post-Acquisition Integration | Operating
Partnerships | Advisory Board
M&A Readiness Assessment | Investor Presentation
Development | Valuation Opinion | Value
Enhancement Strategies | Business Plans | Buyer
Identification | Deal Management
BUY-SIDE
SELL-SIDE
Suppliers
Multi-Brand
Portfolios
Investors
Restaurant
Chains
Technology
Companies
Restaurant
Operators

15. © 2023 Aaron Allen & Associates | www.aaronallen.com 15
ARE WE LEADING AS WELL
AS WE COULD BE?
Are our competitors asking themselves the
same questions and solving for the answers, or are we over-
thinking it?
If we are this uncertain and challenged at the C-Suite level,
what must that mean for the rest of our company
and crews?
How can we best demonstrate the leadership we want or
organization to be known for through a challenging period?
9

16. © 2023 Aaron Allen & Associates | www.aaronallen.com 16
WHERE DO WE WANT TO BE IN 5 YEARS?
And how can we possibly build a
3–5-year plan when we can
barely see 3–5 months into the
future? This is the perfect time to
throw out planning and
budgeting strategies of years
past and ask tougher questions
about where your company can
be five years from now — and
how to get there.
Historically
Now Some Day
2024 2025 2026 BEYOND
THEMATICALLY
10
Read more: https://aaronallen.com/blog/restaurant-strategic-planning

17. © 2023 Aaron Allen & Associates | www.aaronallen.com 17
READY FOR ANSWERS?
Though many of the challenges restaurant leadership faces today relate to a new normal and particular
economic and sociopolitical events, there is a key question that sits at the heart of the hospitality
business: Are we doing everything we can to make our guests feel welcome, cared for, and heard?
Our firm is honored to have helped some of the most successful foodservice businesses globally answer
the tough questions, and would be delighted to put that experience to work for you.
https://aaronallen.com/contact
Start a Conversation

18. Aaron Allen Capital Partners (AACP) is an investment group focused on
funding the future of foodservice™. A consortium of esteemed restaurant
industry executives, investors, and family offices, we are combining resources
to solve some of the biggest pain-points for the foodservice industry globally.
We back high-growth-potential restaurant companies and foodservice
technology enterprises and find a home where smart money can realize top-
quartile returns while helping the industry advance.
2,000+
ENGAGEMENTS
ACROSS SIX
CONTINENTS
Aaron Allen & Associates (AA&A) is the world’s leading global
foodservice strategy firm.
Aaron Allen & Associates advises many of the largest and most successful
foodservice and hospitality companies globally with an unparalleled
breadth and depth of experience across categories, cuisines,
geographies, functional areas, ownership types, service styles, operating
platforms, and phases of the business lifecycle.
100
COUNTRIES
OVER
20 YEARS
$300B+
IN CLIENTS REVENUE
INCLUDING ICONIC
RESTAURANT CHAINS
$1T
REVENUE IN FIRST-
LEVEL FOODSERVICE
CONNECTIONS
200+
COLLECTIVE YEARS
OF FOODSERVICE
EXPERTISE
$8B
DEAL TEAM
EXPERIENCE IN 150+
TRANSACTIONS