National Multi-Unit Hotel Chain
Our client, a national hotel operator, noticed unexplained fluctuations in their F&B margin reports.
Understandably, they quickly started to look at the information being reported to them by their then external stocktakers with concern. The value of external stocktaking was brought into question since it was only producing a GP and particularly as the basic level stocktake (that consisted of a stock count, extraction of purchases and revenue and gross profit for the period), could easily be done in-house and therefore cutting the cost of external stocktaking altogether.
The management suspected a lack of accountability amongst staff to be a key contributor to the variances in their margin. Yet, despite valuing independent audits in principle, they had such little confidence in the incumbent stocktakers figures, it made acting upon them very risky.
The operator therefore set us a goal – to deliver reliable, independent stocktake information – this coupled with additional reporting, that would make staff accountable for any improper fluctuations. We were confident this would lead to the minimizing of fluctuations and provide a valued and valuable independent stocktaking service for the client. The operator gladly agreed to trial Venners for stocktaking.
From the very beginning, we prioritised instilling a consistent approach to measuring the performance of brands throughout the client’s portfolio accurately. All counts were undertaken in detail and accompanied by the chef. A full, in-depth “costed” listing of the stock on site was produced, along with a trading account for the period and a full written report including actions and recommendations. All of this was discussed with the site manager, directly after stocktakes, making it an inclusive audit and one that the manager’s agreed to be an accurate reflection of their operation.
We provided the group’s Finance team (as well as the General Managers) with detailed, accurate reports and recommendations for their food operation. As we had expected, our measures had the very positive effect of making each chef more rigorously manage their stock and as a result the problematic, unexplained fluctuations ceased.
Head Office are now confident that results for every period are accurate – and produced using the same criteria, ensuring fair benchmarks are set. In short, the overall gross profit for the group rose from 66.2% to 74.2% in just nine months – in other words, a staggering £2.8 million to profit.
- Client A National Hotelier
- Type Multi-Site
- Services Stocktaking & Consultancy
- ROI £2.8M Turnover
“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”