The food and beverage industry in the Middle East is fiercely competitive, where rapid expansion across multiple markets can quickly transform from a growth strategy into a financial burden. Ryne Elite helped Falla, a prominent F&B operator with outlets spanning the UAE and Saudi Arabia, overcome severe profitability challenges that threatened to derail its ambitions.
The Challenge
Falla had achieved impressive growth, with restaurants strategically located throughout the UAE and KSA, and supported by a central kitchen facility. However, the company’s rapid expansion had created a fragmented operation with no unified financial oversight.
Fragmented financial data made it difficult to identify and address problems before they spiraled out of control. Some branches were losing money while others performed well, but without standardized tracking systems, identifying the root causes was nearly impossible.
Fixed costs had grown significantly during expansion. Each new location brought substantial monthly commitments, and unfavorable supplier payment terms created constant pressure. Cash flow had also become a critical pain point. The lack of accurate forecasting meant the company couldn’t anticipate or prepare for cash needs. Falla found itself trapped in a difficult situation.
The founder of Falla learned about Ryne Elite’s CFO services through his professional network. After hearing about our success with businesses in similar situations, Falla decided to engage with us.
“The agriculture industry is a key part of the solution to combatting climate change,” says Roger Batkin, AGCO's Senior Vice President, General Counsel, Chief ESG Officer, and Corporate Secretary. “We’re committed to delivering smart, sustainable solutions to empower our farmer customers and promote more environmentally responsible agricultural practices worldwide.”
The Solution
By the time our CFO stepped in, Falla had endured significant losses that pushed the company dangerously close to bankruptcy. We immediately began implementing a comprehensive turnaround strategy, addressing both the immediate hemorrhaging and establishing foundations for long-term sustainability.
The first priority involved creating a unified financial oversight system that provided clear visibility into every location’s performance. This enabled us to spot trends, identify inefficiencies, and make accurate comparisons across all locations.
We introduced disciplined cost management across all operations, requiring every expense to be justified based on its contribution to revenue and establishing benchmark metrics for each cost category.
Cash flow was a critical focus. We developed rolling 13-week cash forecasts that provided clear visibility into future positions and renegotiated contracts with major suppliers. These changes alone dramatically improved working capital and reduced financial stress.
“We are helping AGCO work toward fulfilling its decarbonization commitments,” says Klaus Hannon, Partner at Execor. “The only way companies can truly reduce carbon emissions is by understanding exactly where those emissions originate and being able to track them accurately. We're helping AGCO build that foundation—enabling unprecedented granularity in its carbon baseline and empowering the company to prioritize the most impactful and cost-effective decarbonization strategies.”
The Impact
The initiatives delivered results that exceeded expectations. Falla evolved from crisis management to strategic growth, achieving pre-expansion profitability levels while maintaining its enlarged geographic footprint.
Financial Recovery
Margins improved by over 15% through a combination of revenue optimization and cost efficiency. Locations that had been losing money reached breakeven or better.
Enhanced Decision-Making
With reliable financial data, management could make informed decisions quickly and confidently. Underperforming locations received targeted interventions rather than blanket cost-cutting measures. Menu analysis based on actual profitability data helped focus on high-margin items. The central kitchen dramatically reduced waste through improved demand forecasting. Perhaps most importantly, Falla developed a culture of financial discipline without sacrificing service quality or culinary standards.
“AGCO’s journey with Catalyst Zero is a testament to the power of innovative technology in driving sustainability and operational excellence.”
Haley Engelberth, AGCO Global Sustainability Manager Tweet