Food & Beverage Business Doubles Profits Without Layoffs
Project overview
THE CLIENT
A rapidly growing 8-figure specialty food & beverage brand with both B2C and wholesale distribution reached out because they felt their financial management wasn’t keeping up with their expansion. Despite strong revenue growth, they suspected they were leaving money on the table but weren’t sure where.
THE CHALLENGE
As their team expanded, so did payroll costs, but there wasn’t a clear structure in place to ensure that every role was contributing to profitability. The sales team’s compensation wasn’t tied to performance, and they lacked the financial visibility needed to measure efficiency. The leadership team knew they needed to optimize their workforce and financial strategy, but they didn’t want to reduce headcount or compromise growth. They needed a solution that would increase profitability while ensuring their team was structured for long-term success.
OUR ROLE
M.I. Business Consulting was brought in to identify inefficiencies, optimize profitability, and create a structured workforce strategy that would allow the company to scale without unnecessary costs. We conducted a comprehensive financial and operational audit to uncover areas where payroll spending wasn’t aligned with revenue generation. By analyzing staffing structure, compensation models, and financial KPIs, we created a data-driven plan that restructured payroll without cutting employees—ensuring every role contributed directly to profitability.
We got to work
With our Fractional CFO and Business Consulting expertise, we:
- Conducted a full financial and operational audit – Identified inefficiencies in payroll spending, inventory management, cost structures, and overall profitability to uncover hidden profit opportunities.
- Restructured sales compensation to reward performance – Shifted from a fixed salary model to a tiered commission structure and performance-based bonuses, ensuring payroll spending directly contributed to revenue growth.
- Optimized payroll-to-revenue ratio – Analyzed payroll as a percentage of revenue, reallocating underutilized team members to profit-driving roles without reducing headcount.
- Implemented inventory forecasting and FIFO (First In, First Out) methodology – Reduced spoilage and waste by ensuring older inventory was sold first, lowering product loss and improving cash flow.
- Developed a waste management strategy – Identified inefficiencies in production, ordering, and storage that were leading to unnecessary waste and increased costs, then implemented cost-saving process improvements.
- Streamlined supplier contracts & purchasing strategy – Negotiated bulk purchasing discounts where possible and optimized vendor relationships to improve margins without sacrificing quality.
- Implemented KPI tracking dashboards – Provided leadership with real-time visibility into sales productivity, payroll efficiency, inventory turnover, waste levels, and department-level profitability.
- Developed a scalable workforce model – Designed a long-term hiring and compensation strategy to ensure sustainable, profitable team growth as the company scaled.
- Created an implementation plan for the new organizational structure to ensure the company will remain profitable throughout the process and start by hiring key positions that’ll be able to help with future interviews as well.
Results
By optimizing payroll efficiency, inventory management, and waste reduction, the company was able to double its profitability without cutting staff—ensuring long-term financial stability and scalability.
Strategic cost reductions and revenue-focused adjustments led to a 2X increase in overall profitability.
Optimized compensation structure and role alignment resulted in lower payroll-to-revenue, while performance-based compensation drove higher revenue per employee.
How we got there:
- Designed a tiered commission structure and performance-based incentives to increase revenue without inflating payroll costs.
- Implemented inventory management methods, inventory forecasting, and supplier cost optimizations to reduce waste and improve cash flow.
- Developed real-time KPI dashboards to track sales productivity, inventory turnover, and profitability metrics, allowing leadership to make data-driven decisions.
- Restructured roles and streamlined operational processes to ensure that every team member and expense directly contributed to profitability and growth.
Many growing businesses struggle with rising costs, inefficiencies, and hidden profit leaks—leaving money on the table without realizing it. We help businesses take control of their finances, optimize operations, and implement smarter strategies to ensure every dollar spent is driving profitability and sustainable growth.