What Is Margin Stacking, And How Is It Killing Your NRO’s?

New restaurant openings (NRO’s) have a lot of moving parts, and it’s easy for those parts to go south if you don’t know where to look. Did you know the company who wins your NRO’s technology implementation or low voltage project usually subs out the project management and labor to multiple different companies? Why hire someone like that when you could go straight to the source and eliminate the extra margin added from the other companies. The problem with this is that it creates this “margin stacking” which means by the end of the project, you’re stuck paying more than you would normally. Because these companies want to squeeze as much as they can out of your project, they probably aren’t subbing out to the best or most reliable technical staffing company either. It’s not unusual to have technicians on site who have never worked together before and aren’t briefed on the project details.

What Is Margin Stacking?

Margin stacking is what happens when your implementation project has multiple layers of outsourced labor, and project management. It all starts when a big, well-known brand wins a multi-site new restaurant opening (NRO). The Solutions integrator subs out the labor to a large deployment and project management company. Then the Deployment company subs out the work to a national technical staffing provider. Finally, The Contract Staffing Company hires a company like CUSITech to execute the work orders and show up on site. These different layers of outsourcing cause inflated prices and confusion around the scope of work.

Why It’s affecting your NRO’s?

Because the labor and project management is delegated to different subcontractors, it’s likely you’re not getting the best quality of work, even though you’re paying more than usual. Whether it be not including necessary tools in their work vehicles or under estimating the amount of time a project will take, communications between the subcontracted labor force and project management team are minimal and don’t always effectively communicate the full scope of work. When you work with a company like CUSITech, not only are you receiving W2 technicians and an in-house project management team, you’re developing a lasting relationship with a trusted partner who is committed to refining processes and making sure the next job gets completed more efficiently than the one before.

CUSITech provides a single point of contact to manage the planning, surveying, installation, and implementation of technology adoption with our nationwide skilled W2 technicians, so you can hit go-live dates on time and on budget. Give us a visit today: https://cusitech.com

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