Small Savings Make a Big Difference
The Challenge:
The goals were to review and lower the inbound Cost of Goods (COGS) as well as assess current operations for opportunities to improve efficiency.
The Solution:
• Foodbuy Culinary Solutions, in conjunction with the management company, conducted a consulting review of the Convention Center Property by request of the property’s Executive
Leadership.
• Using the customer compliance report, Foodbuy Culinary Solutions worked directly
with the property’s executive chef and food and beverage director to obtain local spend
invoices. Local spend was optimized by the primary local supplier while the Foodbuy team
optimized broadline spend.
• After extensive analysis of purchases, all outlets, menu mixes, marketing as well as
operations, Foodbuy Culinary Solutions was able to identify $126k in annualized savings
while on property with another $20k+ proposed.
The Results:
- $85% conversion rate; 51 items converted out of 60
- $8K in savings with conversion to contracted manufacturers
- $22K in savings by switching to fresh made pizzas
- $5K in savings by converting select shredded and sliced cheese
- $26K savings by converting to regional meat/seafood/specialty purveyors
- $3K in revenue gain by selling chicken wings in 10 count portions in one outlet
- $34K in revenue gain by equalizing price of 10 chicken wings in three restaurants
- $3K revenue gain in In Room Dining (IRD) by equalizing pricing and ensuring IRD is premium priced over the main restaurant
- $4K in new Volume Allowance (VA/Rebate) for property
- $106K Total Savings/Revenue Gain not inclusive of additional conversions