Boosting Profits the 'Friendly' Way
Sometimes, the only way to advise an employer on how to increase the bottom line is to roll up your sleeves, take a deep breath and put a 'closed' sign on some of your most popular ventures.
Something like this certainly does not happen overnight; internal auditors, controllers and other financial personnel work for months, and sometimes years, in helping make a cost-cutting decision.
Take, for example, Friendly Ice Cream Corp. and their chain of more than 600 Friendly's Restaurants. After a buyout from the Hershey Corporation a few years back, the company now has shut down 80 stores that were performing less than expected, and announced plans to close 70 more in the next several years.
The company also eliminated about 10 percent of its workforce, and looks at the closings and layoffs as the only way to increase profits in light of a declining restaurant sector focusing on family dining with chains like Friendly's and Denny's.
Voice of the Editor
Which isn’t completely true. I mean, occasionally I drop by when I manage to sneak out of the nonstop frat party over at Going Concern, but I’m mostly a wallflower over there. I’m happy to say that I’ve been given express permission (or explicit orders, if you like) to wander over here to AccountingWEB more often.
Why is that, you might ask? My job is to replace the irreplaceable Gail Perry as Editor-in-Chief. What does that mean? I don’t really know! I think it’ll be fun getting a feel for things, throwing in my own thoughts here and there, and listening to the discussions you’re having about the accounting profession.