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  • Writer's picturePAAS Advisors

Fast-Casual Restaurant Saves $1.5M+ on Credit Card Merch Agreement

Written By: Natalie Palastro

Case Study

Customer Profile: Franchise Casual-Dining & Fast-Casual Restaurant Operator

Company Size: Enterprise $2.5 Billion+

Industry: Restaurant

Use Case: $1.5M savings in Credit Card Merch Processing.


The Challenge

The restaurant industry is constantly battling increasing costs in many different areas, including the processing of payments. When dining in, customers now prefer to use credit or debit cards at the time of their purchase. Each time a purchase is made with a credit or debit card, authentication, authorization, and settlement are initiated through a flow to ultimately process the customer's payment. With nation-leading restaurant chains, volumes of purchases scale rapidly, ultimately meaning understanding credit card processing fees is essential to optimize operating costs. When these factors begin to scale, fees and chargebacks can quickly add up and eat into operating costs. These agreements often contain specific language that can be overlooked & misinterpreted, leaving the client with suboptimal fees, rates, chargeback policies, & processing requirements.

The Power of PAAS

With the help of PAAS, analysts performed a Comprehensive Benchmark Thesis on the outstanding agreement. Through the utilization of PAAS360, the benchmark included a SKU level pricing comparison, as well as a full business & legal terms analysis. PAAS was able to look at the client's Credit Card Merch agreement and identify savings WITHIN MINUTES!


After the Comprehensive Benchmark & the help of the PAAS negotiation team, the Casual-Dining Restaurant Franchise was able to secure optimal pricing and an in-depth terms & conditions analysis that helped the client:

  • Save $1.5M+ over the length of the agreement

  • Avoid outside counsel fees

  • Facilitate impactful negotiation with the supplier

  • Reduce the standard negotiation cycle from 60 to 10 days

  • Invest valuable time into growth initiatives for their organization

This is a referenceable client. At your request, we are happy to connect you with the client for a reference call.

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