Restaurants on the Run

The Challenge

Michael Caito, CEO of Restaurants on the Run, is a born entrepreneur, but having an innate ability to dream up winning concepts doesn't always deliver immediate success. And that's what he and his two business partners quickly learned in the mid-1990s, after launching this restaurant food delivery service in Irvine, Calif. Starting out, Restaurants on the Run had three major strengths: It was an excellent idea - there was a demand for this sort of service; the business also quickly became a proven revenue generator; and the management demonstrated energy, passion and loyalty. But weaknesses prevented Restaurants on the Run from achieving its true potential. The partners disagreed about the company's vision and direction, and the business lacked structure, accountability, and a commitment to measuring key aspects of its health. Without a strategy for success and even some of the basic fundamentals in place, Restaurants on the Run was facing stagnant profits and weakening morale.

The Solution

After hearing about MAP's coaching services through a friend from the Entrepreneurs' Organization, Caito attended MAP's 2.5-day, executive development workshop in Newport Beach, Calif., in June 2002.  Although he was impressed with MAP, he worried about committing to the necessary change, so didn't officially buy into the program until August  2002. At that turning point, the entire executive team and department heads also went through the workshop, while various managers attended one-day leadership and management programs. One of MAP's top Senior Consultants took on the executive business coaching with Caito, his partners and key department heads. He also provided customized coaching for the company's first-line supervisors, implemented new hiring practices, and formalized on-boarding. In addition to helping develop the people at Restaurants on the Run, MAP's Coach focused on improving the overall organization. He guided the three partners through a process that defined the company's values, and developed a solid vision and core strategies based upon those values. What's more, he implemented MAP's Vital Factors System and a bonus program in all the departments. This formally established a way to measure the company's health and instituted accountability company-wide.

The Results

With MAP's guidance and Vital Factors System in place, Restaurants on the Run rose above its stagnant state and surfaced as an example of entrepreneurial success that's still growing and profitable today. Over a five-year period, corporate sales increased an average of 17 percent annually while revenues doubled, and profit jumped by 23 times. With a new strategy that better used the company's resources and abilities, plus a fresh focus on more profitable markets, Restaurants on the Run kept key expenses flat while increasing its profit per delivery ratio. Positive cash flow enabled Restaurants on the Run to expand geographically - since 1993, the company's client base has blossomed from six to 950 restaurants, extending throughout California, Las Vegas and Seattle. Results-oriented and motivated, the people at Restaurants on the Run are also happier than ever. As a whole, this team has become an entrepreneurial role model that's ever evolving but maintaining commitment that aligns directly to its carefully defined values and vision.

RESTAURANTS ON THE RUN
​Aliso Viejo, CA

Client: Michael Caito, CEO

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