Automating Complex Revenue-Sharing Calculations for International Coffee Retail Chain
How MYND helped a leading quick-service coffee and beverage retailer transform their lease management operations across 500+ stores with automated revenue-sharing calculations and seamless IND AS compliance.
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Leading International Coffee & Beverage Retailer
Our client is a leading quick-service coffee and beverage retailer operating in multiple stores across India. Known for their premium coffee offerings and exceptional customer experience, they have built an extensive network of outlets in high-traffic locations including shopping malls, business districts, airports, and high-street retail areas. Their rapid expansion strategy relies on complex multi-landlord agreements and revenue-sharing lease structures that require sophisticated financial management.
Extensive Store Network
500+ stores across multiple Indian cities with presence in premium retail locations, shopping centers, and commercial hubs.
Complex Lease Structures
Multi-landlord agreements with revenue-sharing models, tiered rent calculations, and hybrid payment structures unique to each location.
High-Volume Transactions
Managing thousands of monthly rent calculations, landlord payments, and lease compliance requirements across the portfolio.
Regulatory Compliance
Stringent IND AS 116 and IND AS 109 compliance requirements for financial reporting and lease accounting standards.
Operational Bottlenecks Hindering Growth
With rapid expansion across India, the client faced mounting operational challenges in managing their complex lease portfolio. Manual processes that worked for 50 stores became unsustainable at 500+ locations, creating administrative gaps and compliance risks that threatened to slow their growth trajectory.
Multi-Landlord Complexity
Managing contracts with multiple landlords per location created administrative gaps and coordination challenges. Each location often had different property owners, management companies, and lease terms requiring individualized tracking.
Manual Revenue-Sharing Calculations
Revenue-sharing rental calculations required manual processing across 500 stores. Finance teams spent countless hours on spreadsheet-based calculations prone to errors, especially with tiered and hybrid rent models.
Resource-Intensive Onboarding
Landlord onboarding and KYC verification consumed significant operational resources. Manual document collection, verification, and compliance checks created bottlenecks that delayed new store openings.
IND AS Compliance Requirements
IND AS 116 and IND AS 109 compliance requirements for ROU assets, lease liabilities, and interest/depreciation calculations demanded specialized expertise and time-consuming manual computations.
Lack of Centralized Visibility
Lack of centralized visibility into lease obligations and payment schedules meant finance leaders couldn't get a real-time view of their lease portfolio, hindering strategic decision-making.
Month-End Reconciliation Delays
Manual rent accruals led to month-end delays and reconciliation challenges. The finance team struggled to close books on time, impacting financial reporting accuracy and audit readiness.
MYNDLeaseX: End-to-End Lease Automation
MYND deployed MYNDLeaseX, our comprehensive lease lifecycle management platform, to transform the client's lease operations. The solution addressed every pain point with intelligent automation, seamless integrations, and real-time visibility across the entire lease portfolio.
Digital KYC Workflows
Implemented digital KYC workflows for PAN, GST, and bank verification. Automated document collection, validation, and compliance checks reduced landlord onboarding time by 80%, enabling faster store openings without compromising on due diligence.
Revenue-Sharing Calculation Engine
Configured a sophisticated revenue-sharing engine supporting tiered and hybrid rent models. The system automatically calculates rent based on store revenue, applies minimum guarantees, processes tiered percentages, and handles complex split calculations across multiple landlords.
IND AS 116 Compliance Framework
Deployed IND AS 116 framework with lease actualization for accurate provisions. The platform automatically calculates Right-of-Use (ROU) assets, lease liabilities, interest expenses, and depreciation schedules, ensuring audit-ready financial statements without spreadsheet dependency.
Landlord Self-Service Portal
Enabled self-service portal with dashboards, payment tracking, and invoice uploads. Landlords can now view payment schedules, download statements, upload invoices, and track settlement status independently, reducing communication overhead and query volumes.
Touchless ERP Integration
Integrated automated journal entries with ERP for touchless accounting. Real-time synchronization ensures rent accruals, payments, and provisions are automatically posted to the general ledger, eliminating manual data entry and reconciliation efforts.
Multi-Landlord Management
Set up multi-landlord management with distinct terms per location. The platform tracks separate agreements, payment schedules, and compliance requirements for each landlord, providing a unified view while maintaining granular control over individual relationships.
Transformational Business Outcomes
The implementation of MYNDLeaseX delivered measurable improvements across the client's lease management operations. From eliminating calculation errors to achieving full regulatory compliance, the transformation touched every aspect of their real estate finance function.
Eliminated Manual Calculation Errors
Automated rent accrual process eliminated errors caused by spreadsheet calculations. Revenue-sharing computations that previously took days are now processed in minutes with 100% accuracy, removing the risk of over or under-payments to landlords.
Centralized Lease Visibility
Provided complete visibility across the portfolio with instant access to agreements and payment schedules. Finance leaders can now view real-time lease obligations, upcoming renewals, and payment forecasts through intuitive dashboards, enabling proactive decision-making.
Streamlined Landlord Management
Eliminated manual errors in revenue-sharing calculations while streamlining landlord relationships through self-service capabilities. The portal reduced landlord queries by over 60%, freeing the finance team to focus on strategic activities rather than routine inquiries.
Achieved Full Compliance
On-time IND AS compliance reporting without spreadsheet dependency, ensuring accurate financial statements. The automated calculation of ROU assets, lease liabilities, and amortization schedules passed external audit scrutiny without any observations.
Lease Management in the QSR Industry
The Quick Service Restaurant (QSR) industry in India has witnessed exponential growth, with major coffee chains and food retailers rapidly expanding their footprint across metro and tier-2 cities. This growth brings unique challenges in real estate management, particularly when dealing with complex lease structures in premium retail locations.
Revenue-sharing lease models have become increasingly common in shopping malls and high-street retail, where landlords prefer to participate in the retailer's success. These arrangements, while beneficial for both parties, create significant administrative complexity when managing hundreds of locations with varying terms, tiered percentages, and minimum guarantees.
The introduction of IND AS 116 has further complicated lease accounting, requiring organizations to recognize Right-of-Use assets and lease liabilities for operating leases. For QSR operators with large store networks, manual compliance is not just inefficient—it's practically impossible without automation.
Modern lease management isn't just about paying rent on time—it's about strategic visibility into one of your largest operational expenses and ensuring compliance with evolving accounting standards.
Ready to Transform Your Lease Management Operations?
Whether you're a QSR operator with complex revenue-sharing agreements, a retail chain managing hundreds of locations, or any organization looking to automate lease accounting and compliance, MYND can help. Let's discuss how MYNDLeaseX can streamline your operations and ensure IND AS compliance.
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