Wastage was reduced by over 70% and GP on beverage sales increased by over 50%.
What we did:
Changes in management and specific demands from the client at a prestigious London venue had resulted in a significant build-up of static stock held on site, with a value in excess of £10,000. The majority of this stock consisted of premium wines, purchased for specific events but not suitable for the day-to-day portfolio of events taking place at the venue.
Working with the contract caterer, we introduced a reduced wine list and managed the sales offered to clients. We also negotiated better deals with suppliers, including sale-or-return options for specific orders and product lines. Maintaining accurate stock takes allowed the caterer to offer upgrades to clients to use up existing stock, increasing revenue and service levels with no direct cost. Stock was also made available to other units within the business, bringing cross-charged revenue into the venue and reducing costs across the wider business.
We also identified that catering staff were habitually using more stock than was consumed by clients, opening bottles, splitting cases etc, creating an excess that was charged by the supplier but not charged on to the client. By providing training to the team we improved estimates of stock consumption, creating a more efficient service and significantly reducing wastage.
- Date: 19th January 2020
- Category: Growth