Esperanza’s Tortilleria

Esperanza’s Tortilleria is a manufacturer of tortillas, tostadas and corn chips. The family business started in 1962 and since then, the founders successfully created a thriving family business that has served their local community, raised their families and supported their children’s college educations. The second generation of three sons is now running the company. The company also operates a Mexican food deli/retail store adjacent to the manufacturing building.


Challenge

The founders of Esperanza’s Tortilleria are in transition to retirement and are passing responsibility for the business to their three sons. During this transition, the company continues to face a lot of local competition, low margins, high labor costs, and an increase in minimum wage. The father, who founded the business, has always handled the finances of the business and believed that it was now time for his sons to better understand the company’s financials, which would improve their ability to use this understanding to make good manufacturing decisions. The company knew that they wanted to decrease waste and bring in automation, but the management team knew that they did not have a background in accounting, finance or lean operating practices, and they agreed that they needed assistance with calculating job costing, manufacturing labor burden rate, costing / profit analysis and business financials to make better decisions leading to increased operational performance.

Solution

CMTC started work with Esperanza’s Tortilleria in December of 2018 to provide financial consulting services to address the organization’s current situation. This consisted of the following:

  • Financial consulting
  • Business coaching in accounting and business operations to enhance the efficiency and profitability of the business
  • Provide office administration staff with best practices to improve performance
  • Provide CFO advisory assistance in the areas of budgeting, forecasting and financial controls
  • Provide owners & management team with clarity on business performance

Results

  • Improved business profit & cost monitoring to maximize profits and provide accurate performance tracking. This led to improved financial performance and contributed to growth and viability of the business.
  • Enhanced business performance tracking to maximize profits
  • Optimized processes of profit centers
  • Increased value in business through strategic, financial and operational planning
  • Increased profits and ability to compete
  • Sales increase of $25,000
  • Retained sales of $65,000
  • Three new positions created
  • 17 jobs retained
  • Cost savings of $60,000
  • Investment of $125,000

“CMTC has been extremely helpful in Esperanza's Tortilleria desire to become a more efficient company. They helped put modern policies and procedures in place. They also helped us to define duties in clerical areas to conserve time so that staff can be used in other areas to complete other tasks. All in all, CMTC has been a breath of fresh air to Esperanza's Tortilleria.”

Hugo Martinez
Vice-President, Esperanza's Tortilleria

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