Good morning! Sending you crisp November vibes. 🍂

The polls are settled, and so is the game plan for saving money amid slow-to-no growth ⏩ boost margins by spending less and put those lower interest rates to good use. Curious how? Read on…

What’s on tap in this issue:

• El Pollo Loco’s margin magic
• M&A money moves
• Smart saving - fix it first

🦃 A month of Tradesgiving

This month, we're celebrating the heroes who keep your facilities running smoothly — our incredible service providers. Just ask Suzanne from Mico Cooling, who's generated over $1M in business since 2021 through ResQ, showing how we help vendors thrive by connecting them to quality clients and ensuring faster payments.

​​​​​Industry news

What’s cookin’ in the industry?

Despite sluggish growth, there are still pockets for potential profit. 🙌

El Pollo Loco creates margin magic

The crazy chicken folks are making room for margin...

Despite flat sales growth, El Pollo Loco’s Q3 profit margins increased to 16.7% (up from 14.4% in Q3 2023). They’re banking on efficient growth as they plan to open at least 10 new locations in 2025 and revamp outdated designs.

💲 Tech to offset labor costs: They rolled out new salsa prep equipment that’s easier to use and clean and are introducing self-serve kiosks to drive cost-effective labor efficiency.

🏪 Faster path to profitability for new locations: New unit buildout costs were reduced to $1.8M per unit, with smaller 2,200 sq ft footprints optimized for off-premise dining.

🛠️ Less spent on equipment: They’re avoiding equipment with unnecessary features and investing in energy-efficient equipment like hoods & HVAC systems.

Fed cuts set the table for M&As

Got my mind on my money, and my money on my mind…

Lower interest rates in 2025 are set to spur mergers and acquisitions in the QSR sector, making it easier for operators to access financing and invest in growth. 👇

🏦 Upcoming rate cuts — On Nov. 7, the Federal Reserve cut interest rates again by a quarter point. With reduced interest rates, loan pricing is expected to further decrease by over 200 basis points, potentially dropping below 8% within the next 12 to 15 months.

🤝 Merger madness — Lower interest rates could ignite a wave of M&A deals, helping smaller brands find big partners and scale up.

📈 Borrow to grow — Cheaper loans open doors for expansion and upgrades, making 2025 the time for strategic growth moves.

➡️ Efficiency gains to pay back loans — Use affordable financing to invest in tech or equipment upgrades that drive down operating costs. 2 ideas: energy-efficient appliances and automated preventative maintenance to save cash and boost profit margins long-term.

Timely tips

Even when sales revenue slows, repairs and replacements wait for no one…

As you head into 2025, focus on figuring out what will break before it actually breaks. Fixing a roof will cost a lot less than waiting for the whole thing to cave in.

🤔 Not sure if your roof needs fixing? Get it surveyed to see how it's holding up. ResQ has a vendor that can come survey your roof for a low rate — reply to this email if you’re interested.

2 penny-wise ideas to prep for 2025:

📊 Track repair patterns across locations using a centralized system to identify systemic problems. When multiple units experience similar issues (like ice machine failures or plumbing backups), you’ll be able to catch it and negotiate better vendor group rates for multiple repairs.

📋 Implement a preventative maintenance program. Regularly service equipment to prevent unexpected breakdowns that can disrupt operations and incur high repair costs. Platforms like ResQ can automate the scheduling and tracking of maintenance jobs, ensuring timely upkeep.

From the community​​​​​

Cool Sips taps into vendor directory to score 20% savings on new store equipment installation

Cool Sips, a rising soda brand in NYC, found themselves in a bind when their go-to contractor was unavailable for a kitchen equipment installation during a new store buildout. With a tight timeline ticking down, founder Andrew Moger turned to ResQ’s vendor network to find a top-notch alternative.

The platform quickly connected Cool Sips with a certified Super Vendor, who served up a competitive quote faster than you can swig a soda.

The vendor went to work efficiently managing the installation, meeting compliance standards, and maintaining project timelines while ResQ’s support team helped smooth out the details. Cool Sips’ project timeline stayed on track, ensuring customers could get their soda sip on sooner.

With ResQ’s vendor network, Cool Sips locked in a 20% savings on installation costs, significantly lower than typical market rates — sweetened further by flexible credit terms. For Moger, ResQ was the key to operational success, delivering high-quality, reasonably priced, and uber-fast solutions.

Break time

At least disasters make for good stories looking back

Got an equipment failure horror story?

Reply to this email with it. We’d love to hear it!

— Kareem at ResQ

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Shameless plug

What does ResQ do?

ResQ is the ONLY facilities management platform that streamlines restaurant R&M operations and enhances oversight.

Operators can efficiently track assets, create work orders quickly, and choose from a network of quality vendors to work with.

ResQ makes it possible to cut costs, save time, and scale — all at the same time

Love free samples? We do, too. Schedule a FREE demo to see how ResQ can help you kick R&M chaos to the curb.