We were approached by a top golf course in Scotland who have hosted a number of Open Championships.
The golf club had been looking to increase profitability within the liquor side of their business. There was a concern about how accurately staff were dispensing drinks and whether that would account for the high level of waste they were experiencing. It soon became clear that a more robust reporting system for wastage was required, as well as a deeper understanding of how this was affecting the results.
Venners were appointed and asked to provide our usual clear, informative reporting, some on-site business coaching and easy to follow stock management action plans to help them assess their wastage and drive performance.
Following every stocktake, we sat down with the club secretary and the beverage manager to give a full explanation of their results and to take a detailed look at where improvements could and should be made. We helped them develop and launch a process ensuring that all wastage was recorded and costed every single day.
The staff and management team then started to see the true cost of wastage, on a daily basis and also how it developed and grew throughout the stock period. This helped them to focus on preventing shrinkage, which worked to great effect.
We also helped the club discover that the perceived cost saving from using 1.5 litre bottles of Coca Cola and Lemonade, rather than individual glass bottles, was not being realised once the wastage from half bottles becoming flat was taken into account.
Our stocktaking started to become a part of the business that the club felt they could fully buy into, as they started to understand how using the reports could help make a real difference. Venners have been working with this beautiful old club for twelve months, supporting them to 4.2% improvement to liquor profitability and a 2.9% increase in yield.
Oct 16-Mar 17
Ave GP% – 54.7%
Ave Yield – 77.1%
Apr 17-Sep 17
Ave GP% – 58.9%
Ave Yield – 80%
