Case Study

Cost Savings and Opportunities to Generate Income

MEMBER PROFILE

This Member is a private hospitality company that owns and operates full-service hotels and resorts under several distinct brands

  • 40+ Locations
  • Operates across various parts of the United States
  • Franchisee for national hotel brands

CHALLENGE:

This Member came to Foodbuy hoping to find ways to save on costs and identify some quick wins for the business. The Member was unaware of the extent to which unit level operators were not in compliance with brand specifications. As a result of this noncompliance, the Member was losing out on cost saving opportunities in high volume categories and faced various stocking challenges in day-to-day operations.

SOLUTION

Foodbuy performed a specification book cleanup, which compared the in-stock items the Member should be buying vs. what they were actually buying. After reviewing a total opportunity spend of $450K, Foodbuy identified cost savings across 30 major categories where brand standards were not being met. Next, Foodbuy examined products that were not in stock, but part of the brand’s specification book. After reviewing an annualized spend, Foodbuy recommended to the Member that if they were to request stocking and buy against specific items, this would generate additional improvement in income.

RESULTS:

This optimization resulted in:

  • 13% improvement in price savings and volume allowance for a total of 26% net savings
  • Increased brand standard compliance
  • Enhanced product availability

Challenge

This Member came to Foodbuy hoping to find ways to save on costs and identify some quick wins for the business. The Member was unaware of the extent to which unit level operators were not in compliance with brand specifications. As a result of this noncompliance, the Member was losing out on cost saving opportunities in high volume categories and faced various stocking challenges in day-to-day operations.

Solution

Foodbuy performed a specification book cleanup, which compared the in-stock items the Member should be buying vs. what they were actually buying. After reviewing a total opportunity spend of $450K, Foodbuy identified cost savings across 30 major categories where brand standards were not being met. Next, Foodbuy examined products that were not in stock, but part of the brand’s specification book. After reviewing an annualized spend, Foodbuy recommended to the Member that if they were to request stocking and buy against specific items, this would generate additional improvement in income.

Results

This optimization resulted in:

  • 13% improvement in price savings and volume allowance for a total of 26% net savings
  • Increased brand standard compliance
  • Enhanced product availability

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