Executive Summary

Facing turnover among kitchen leadership, Shanahan’s Steakhouse struggled with inaccurate inventory counts, leading to inflated food costs and reduced profitability. Recognizing the need for a trusted partner, Shanahan’s turned to Back Office. Through hands-on support, tailored financial tools, and a service-first approach, Back Office became an integral partner in streamlining the steakhouse’s operations. Back Office guided Shanahan’s in optimizing inventory management and financial workflows, leading to immediate cost savings and ongoing improvements in cash flow management and profit margins.

The Problem

Shanahan’s Steakhouse, an upscale establishment known for its premium offerings, faced a growing problem due to turnover among kitchen leadership. Each transition caused delays in training executive chefs on the restaurant’s operational software, resulting in discrepancies in inventory management and flawed food cost tracking—especially for high-value items like premium meats. As profit margins tightened, Marc Steron sought help from Back Office, a trusted partner since the restaurant’s founding, to restore control over food costs and implement more effective financial practices.

The Solution

Back Office’s approach went beyond simple software fixes—it was about partnership and empowerment. The team began by conducting an in-depth audit of Shanahan’s operations and spent time onsite, working directly with Steron and the restaurant’s leadership to uncover inefficiencies. By marrying their deep industry experience with Shanahan’s goals, the Back Office team offered a clear path forward.

They leveraged proprietary widgets to easily monitor inventory, track costs, and analyze budget vs. actual performance. The team started by tackling Shanahan’s largest expense: premium meats. Together, they improved accuracy in inventory tracking and equipped the kitchen staff with the necessary knowledge to identify profit leaks. This hands-on, collaborative approach helped Shanahan’s improve food cost management right from the start.

As the partnership deepened, Shanahan’s capitalized on findings from operational reviews and Back Office introduced their Bookkeeping+ Service, which helped pave an even stronger path for Shanahan’s cash flow management. These services enabled seamless handling of accounts payable, improved cash flows, and ensured precise bank reconciliations. Shanahan’s now had reliable, actionable weekly financial reports to inform their decisions.

Additionally, Back Office introduced programs that further boosted efficiency, such as the Buyers Edge Produce Management Program, which secured cost-saving agreements with distributors, and a spend management tool to audit vendor contracts and negotiate better pricing across various expense categories.

Results

With Back Office’s customized support, Shanahan’s quickly saw measurable improvements. Food costs dropped, particularly for their highest-ticket items, while the restaurant also uncovered savings in produce and routine supplies. Cash management, once a time-consuming task, was streamlined, saving the restaurant about five hours each week in reconciliation processes.

“This service has brought us comfort in the fact that we have confidence in our financials and can be trusted especially at year-end. The more time we have to focus on operations is always a goal we strive for and the Back Office team continues to provide for us.”

Shanahan’s now operates with full confidence in its financial reporting, leveraging Back Office’s tools to not only maintain control over expenses but also continually refine its operations.

About Shanahan’s

Shanahan’s is one of Denver’s premier steakhouses and ranks among the highest-grossing independent restaurants in Colorado. A Wine Spectator “Best of” Award of Excellence honoree and named one of OpenTable’s Top 100 Steakhouses in America, the restaurant is a destination for diners seeking elevated cuisine and impeccable service. Founded in 2009, Shanahan’s is named after two-time Super Bowl-winning coach Mike Shanahan, and it showcases his Lombardi trophies as part of its sophisticated yet welcoming ambiance.