A small and rapidly expanding group of destination pubs with a major focus on serving high quality food to it’s loyal, widespread following.
A pub group was experiencing significant fluctuations within their weekly food margins and could not understand or identify the cause. They had recently started using a web based back of house software system which management believed was accurate but staff did not trust.
The objective was to investigate system accuracy, identify and rectify the cause of food margin fluctuations and put in place best practice controls and procedures to ensure future efficiency and accuracy.
Utilising their Key Line Tracker Reporting, Venners generated a variance analysis of period sales achieved against product consumption, for both high retail value and high cost products. They then identified the origin of these variances by reviewing revenue controls, product quality, food production, preparation methods, cooking processes, portion control, equipment use, stock security, stock rotation and prep levels, putting in place best practice controls and procedures to ensure efficiency and accuracy.
Venners’ key findings included:
• Loyalty discounts were dragging down the achievable margin on the top ten selling dishes by 5.5%
• The EPoS system was not providing detailed sales reporting on set and specialist menu items which represented over 10% of food sales, preventing analysis of sales mix for these items.
• Internal recipe costings were inaccurate due to out of date costs, portion size errors and incomplete recipes.
• 2% of food sales were being voided or refunded with no further analysis of causes and without the food cost implication factored into unit results.
The pub group’s food margin improved significantly from 61% to 67% overall within just 4 weeks of Venners presenting their findings and recommendations. Further growth is expected.
- Client Gastro Pub Company
- Type Managed
- Services Consultancy & Training
- ROI 6% Margin Increase