The Franchisee CFO’s Guide to Smooth Outsourcing Transitions
September 4, 2025
By Louis (Dusty)
The restaurant industry is facing unprecedented financial pressures in 2025. According to recent industry reports, rising food costs put serious pressure on restaurant budgets, with 78% of operators reporting price hikes in 2024—and 82% bracing for even more increases in 2025. Labor costs aren’t slowing down either. In 2024, 85% of restaurants saw their payroll expenses climb, with wages increasing 30% faster than pre-pandemic rates according to industry analysts. Adding to these challenges, the National Restaurant Association reports that 22 states again raised their minimum wages in 2024, with California implementing a $20 per hour minimum wage for food chains with 60+ locations.
For franchisees managing multiple units, these cost pressures are compounded by the inherent complexity of multi-location operations. Managing a multi-unit franchise can be a challenge — there’s a lot to monitor in every business, and owning multiple locations can make things even more complicated. Some franchise owners even manage locations across different franchise concepts, which further increases the complexity.
As restaurant franchisees continue to seek solutions for these mounting challenges, many CFOs are turning to outsourced accounting solutions to drive efficiency and focus resources on growth. While taking such a step may feel like a big change for some, moving from internal accounting to outsourced services doesn’t have to be a turbulent experience. As one seasoned (now retired) CFO, Dusty Profumo, who successfully managed an 18-year outsourcing partnership notes, “There will be bumps in the road initially, but the key is minimizing the turmoil through proper planning and communication.”
Based on Dusty’s years of experience with outsourced accounting partners, here are his 15 suggested best practices for making the partnership work for you.
Pre-Transition Planning
Establish Your Partnership Mindset The foundation of successful outsourcing isn’t just cost savings—it’s building a true partnership. Before you begin, commit to viewing your outsourced team as an extension of your internal staff, not as external vendors. This mindset shift will guide every decision moving forward.
Set Clear Expectations Be upfront with your organization about the transition timeline. Expect a 6-month stabilization period where processes are refined and relationships are built. This isn’t a sign of failure—it’s the natural evolution of any significant operational change.
Document Current Processes Create detailed documentation of your existing accounting workflows, approval processes, and reporting requirements. This baseline will be crucial for your outsourcing partner to understand and replicate your back-office operations.
Foundation Building
Organizational Structure Setup Work with your outsourcing partner to establish clear team structures. Based on successful implementations, organize the outsourced team into specialized units: accounts receivable, accounts payable, general ledger, and specialized functions. Each team should have a designated lead who will be your primary contact.
Internal Team Assignments Designate specific internal team members to manage the outsourced relationship. Consider maintaining a controller and assistant controllers whose primary responsibility will be managing the outsourced team in their respective areas.
Communication Framework Establish monthly operational calls with structured agendas. These aren’t casual check-ins—they’re formal review sessions covering team performance, organizational changes, and specific topics requiring attention.
Process Implementation
Team Lead Selection Process Request to interview and provide input on all team leads at the outsourcing partner. These individuals will be the backbone of your extended team, so invest time in ensuring they’re qualified and aligned with your organization’s needs.
Monthly Reporting Requirements Implement a monthly organizational chart review process. This should show every team member’s name, tenure, and role. Any changes in personnel should be immediately visible and discussed.
Satisfaction Monitoring System Create a simple but effective satisfaction questionnaire for your internal team members who interact with the outsourced team. This should cover each functional area and include both positive feedback and suggestions for improvement.
Relationship Strengthening
Advanced Partnership Elements Consider implementing relationship-building initiatives. Some organizations have found success with annual visits to offshore locations, bringing company merchandise, and hosting team dinners. While not inexpensive, these kind of investments significantly strengthen the partnership feeling.
Performance Metrics Definition Establish clear success metrics, with personnel turnover being a critical measure. Your outsourcing partner should be evaluated on their ability to maintain stable, experienced teams serving your organization.
Issue Resolution Protocols Develop structured processes for addressing problems. When issues arise, expect your outsourcing partner to provide action plans for resolution, not just acknowledgment of the problem.
Ongoing Success Strategies
Turnover Management Accept that some turnover is inevitable, but hold your partner accountable for managing it professionally. For senior roles, you should have input into replacement selections. For general staff, monitor overall turnover rates and address concerning patterns immediately together.
Continuous Improvement Use monthly calls to discuss both successes and challenges. Celebrate team members who exceed expectations—even small gestures like company-branded gifts can significantly boost morale and loyalty.
Partnership Evolution Remember that successful outsourcing relationships evolve over time. What requires intensive management initially should become more routine as processes mature and relationships strengthen.
The Bottom Line
Successful outsourcing transitions require treating your external partner as an integral part of your team while maintaining appropriate oversight and quality standards. The goal isn’t to eliminate all challenges but to create systems that minimize disruption and maximize long-term value.
Quatrro Business Support Services (QBSS) specializes in accounting and back-office solutions for restaurant franchisees and multi-unit operators. With deep expertise in franchise operations and food service accounting, we deliver specialized restaurant knowledge backed by white-glove service and so restaurant CFO’s can focus on growth while maintaining financial excellence for their organization.
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Written in collaboration with
Louis (Dusty)
Finance Executive
Louis (Dusty) Profumo is a seasoned finance executive with over three decades of experience in corporate finance and franchise operations. Currently Senior Advisor to the Board at Quatrro Business Support Services, he previously served as Executive Vice President and CFO at Church's Chicken for more than a decade. His career includes CFO roles at Avado Brands, Randstad North America, and 23 years with KPMG, eleven years as an audit partner. Profumo holds a BS degree in Hotel Administration, and an MBA from Cornell University's S.C. Johnson Graduate School of Management. He specializes in franchise operations, strategic planning, and executive leadership in the restaurant and hospitality sectors.
