A small and rapidly expanding group of destination pubs with a major focus on serving high quality food to it’s loyal, widespread following.
A pub group was experiencing significant fluctuations within their weekly food margins and could not understand or identify the cause. They had recently started using a web based back of house software system which management believed was accurate but staff did not trust.
The objective was to investigate system accuracy, identify and rectify the cause of food margin fluctuations and put in place best practice controls and procedures to ensure future efficiency and accuracy.
Utilising their Key Line Tracker Reporting, Venners generated a variance analysis of period sales achieved against product consumption, for both high retail value and high cost products. They then identified the origin of these variances by reviewing revenue controls, product quality, food production, preparation methods, cooking processes, portion control, equipment use, stock security, stock rotation and prep levels, putting in place best practice controls and procedures to ensure efficiency and accuracy.
Venners’ key findings included:
• Loyalty discounts were dragging down the achievable margin on the top ten selling dishes by 5.5%
• The EPoS system was not providing detailed sales reporting on set and specialist menu items which represented over 10% of food sales, preventing analysis of sales mix for these items.
• Internal recipe costings were inaccurate due to out of date costs, portion size errors and incomplete recipes.
• 2% of food sales were being voided or refunded with no further analysis of causes and without the food cost implication factored into unit results.
The pub group’s food margin improved significantly from 61% to 67% overall within just 4 weeks of Venners presenting their findings and recommendations. Further growth is expected.
- Client Gastro Pub Company
- Type Managed
- Services Consultancy & Training
- ROI 6% Margin Increase
“Venners provide a reliable and reputable inventory and valuation service, that is second to none. They get it right first time, every time.”
“I have always found Venners to be very responsive in the face of tight deadlines, pragmatic in approach and highly knowledgeable in terms of their advice. Overall the firm represents good value for money.”
“We definitely benefitted from Venners food profit consultation. They brought operational focus and attention that delivered significant quick, and longer term, wins. However sophisticated your systems and theoretical costing’s seem to be, their analysis of what is actually happening in practice and how to improve it, is invaluable.
“Their Menu Cost audit service was paramount in helping us accurately trial and cost our new breakfast menu and fine tune our operations. Thanks to Venners, our guests and our business win; we’ve improved the quality of our breakfast offering whilst maintaining our profit margin”