Our customer, who operates a chain of excellent European hotels, had been working closely with the Venners consultancy team for a number of months to successfully upgrade their breakfast offering across their hotel portfolio in Germany.
Detailed hotel breakfast buffet analysis
The customer was seeking to improve breakfast standards whilst maintaining a level cost base. Having completed detailed cost analysis of the previous breakfast offering, our consultants were able to compare this against new data, to ascertain the potential impact the updated menu was having on their franchisee’s breakfast offer margins.
The hotel investigation found some interesting results
Our consultants visited a selection of hotels in a pilot study to confirm the estimated cost per guest. Based on a number of scenarios, assumed habits and guest product consumptions, it was found that the cost price had indeed increased by an average of 3% per head.
Identifying ways to combat the breakfast buffet cost increases
As impartial third-party specialists in foodservice cost analysis, compliance and stock control, the customer tasked Venners with seeing if there was a way to reclaim the additional breakfast cost expenditures through savings in other areas.
Through analysis on some of the signature lines, our consultants identified that franchisee interpretations of the new breakfast offering were contributing to the varying cost prices per guest which differed by as much as 30% per head in some cases.
Further standardisation, which could be based upon the most economic interpretation of the new menu and brand standards found within the pilot group, could be implemented across the board to keep the additional cost price expenditures at bay.
More importantly however, the consultants were able to identify other areas where the pilot hotels could redeem some of the profit which was now being redirected into the new breakfast offering.
Wastage in particular was calculated across three core wastage contributors and found to be driving an additional cost per guest. A targeted, but achievable reduction of this wastage by 75% would save each operator in excess of €4,000 per annum.
A targeted action plan to reduce costs
Implementing an improvement action plan helped the company reduce its costs in other operational areas whilst still benefiting from the improved customer reviews that had followed the introduction of the now successfully launched breakfast offering.