Multi-brand F&B group achieves 29% EBITDA improvement
through data-driven portfolio optimisation
A multi-brand F&B operator with seven outlets across Dubai and Abu Dhabi was generating AED 48M in annual revenue — but producing only AED 2.1M in EBITDA. Two of the seven concepts were loss-making. A third was breakeven. The founders knew the business was underperforming but had been unable to diagnose precisely why — or to make the difficult decisions that a clear diagnosis would demand. Dillon & Bird was brought in to provide both.
AED 48M in revenue, AED 2.1M in EBITDA — a structural problem, not a trading one
The business had no unit-level P&L. Management accounts were produced at a group level only, making it impossible to determine which outlets were subsidising which. The founders suspected two outlets were loss-making but could not quantify the drag.
Procurement was managed independently by each outlet manager. The group was purchasing from 34 different suppliers with no centralised negotiation, no volume discounting, and significant wastage from inconsistent ordering practices.
The property portfolio included two leases — one in Dubai Mall and one in Abu Dhabi's Yas Mall — signed at pre-2020 rental rates that were now materially above market. Both landlords had been resistant to renegotiation.
A structured path from problem to outcome
Unit-Level P&L Construction
We spent the first six weeks building granular unit-level P&L statements for all seven outlets — allocating shared costs on a defensible basis and identifying the true four-wall contribution of each concept for the first time.
Portfolio Rationalisation
The unit P&L work confirmed that two outlets were structurally loss-making — not due to weak trading, but due to irrecoverable rent-to-revenue ratios. We modelled the impact of exit vs. renegotiation for each, and recommended exit of one and intensive landlord negotiation on the other.
Centralised Procurement Implementation
We consolidated the supply base from 34 to 11 preferred suppliers and established a centralised procurement function with weekly order cycles and par-level inventory management. We negotiated volume pricing agreements that delivered immediate cost reductions.
Lease Renegotiation Programme
We prepared detailed financial analysis of each property's contribution relative to market rental benchmarks and presented this to both landlords with a structured renegotiation proposal. Yas Mall agreed to a 22% reduction; Dubai Mall agreed to a 14% reduction.
Management Information System
We implemented a daily flash reporting system — giving the founders real-time visibility into each outlet's revenue, covers, average spend, and cost ratios. For the first time, decisions could be made on data rather than instinct.
Measurable impact — delivered on time
Group EBITDA increased from AED 2.1M to AED 6.3M — a 200% absolute improvement — within 12 months.
The annualised EBITDA improvement from procurement, lease renegotiation, and portfolio rationalisation combined.
Yas Mall lease renegotiated at 22% below the previous rate — the largest single cost reduction in the programme.
One concept exited cleanly; one renegotiated to viability — removing AED 1.8M of annual EBITDA drag.
“For three years we thought it was a sales problem. Dillon & Bird showed us it was a structure problem. Once we could see the real numbers, the decisions became obvious.”
— Managing Director, Multi-Brand F&B Group — Dubai, UAESimilar challenges. Similar results.
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