A popular, city centre leisure complex housing multiple entertainment facilities, including bars, restaurants and other activities. Our client approached us in the middle of rolling out a new EPoS system, procured with the intention of allowing them to carry out internal stocktakes.
However, they had no stocktaking ability or disciplines in place and didn’t know how to use or capitalise on their new Epos system. The objective was to set up and instil best practise stocktaking controls into the venue and their team as well as educate them in the ways of their new Epos system so that they could undertake their own stocktaking in the medium to longer term and only consult with us on issues they couldn’t resolve.
The venue has various different bars within the building, used for functions, conferences and events as well as a bar and restaurant open to the public. Initially, we did regular stocktakes with them over a 4 month period, sometimes weekly sometimes longer depending on trade levels and trained them to the point where they were fully operational and didn’t require regular stocktaking from us and could do basic stocktaking and Epos management for themselves instead.
Five months later the client consulted with us again as they began having concerns about the performance of the liquor stock and the information they were getting from their epos system – they were struggling to understand the results and also to know where to begin to improve the figures.
Our results showed losses of up to 25% of the revenue on occasions and that despite our advice to the contrary, they were no longer recording the movement of stock around the building. Furthermore, there was one bar in the building where the new Epos system had not been installed as it was isolated from the other trading areas. Here, they had a standalone, non-itemised till in use. This meant we knew the value of the revenue from this location but not the breakdown of the sales which in turn made analysis of the individual stock item variances difficult.
Our consultant identified that there were some stock items that were supposedly only sold in the bar without the itemised till. The retail value of these sales actually exceeded the total revenue from this till. It became quite clear that the lack of tracking stock within the building was contributing to major issues in this areas so we helped them enforce transfers between bars and to focus on the stock control in this particular part of the building.
We advised that they carefully monitor the products sold in this bar area each and every time it traded by recording opening and closing stocks and comparing the consumption to the revenue. We also helped them tighten up other controls such as the “free pouring” of spirits which was still happening in some areas despite us having strongly advised them against it from the outset as it was contributing to large losses. Accordingly, measures are now used throughout the entire building.
Within 4 weeks of our second consultation, their GP improved from 64% to 70.1% and regular losses of circa £6K were eradicated. The venue continues to do basic stocktaking and epos management for themselves and to consult with us periodically or whenever they have an issue that requires our immediate specialist attention.
- Client Hospitality Complex
- Type City Centre
- Services Consultancy & Stocktaking
- ROI 6.1% GP Increase
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