Specialty Coffee Brand
Develop and execute a robust cost optimization process
New Jersey, USA
A growing café chain in the US was facing significant challenges in managing its operational costs. The café struggled with accurately tracking recipe usage, which led to inflated cost of sales and inconsistencies in inventory management. Additionally, high labor costs and excessive food waste were further impacting profitability.
The café already used Square as its point-of-sale (POS) system but needed a more integrated solution to better manage inventory, track costs, and reduce waste.
Given the complexity of managing high-profile events for both government and private sector clients, the company sought to create a financial model that would not only help in assessing its valuation but also in setting appropriate pricing strategies for its projects.
Integration of Restock with Square:
We integrated Restock, a robust inventory management tool, with the café’s existing Square POS system. This integration allowed for seamless data flow between the two systems, enabling the café to track ingredient usage in real-time and compare standard costs with actual costs.
Automated Recipe Management:
With Restock integrated into Square, the café could automate recipe tracking and management. This ensured consistent monitoring of ingredient consumption and allowed for accurate calculations of cost of sales. The system also performed automatic variance analysis, identifying discrepancies between expected and actual costs, which enabled management to take corrective actions promptly.
Labor Cost Optimization:
To further reduce operational costs, we introduced robotics in key areas, such as beverage preparation and ingredient assembly. This allowed the café to reduce manual labor requirements and reallocate staff to customer-facing roles, thus lowering labor costs while maintaining high service quality.
Waste Reduction through Smart Inventory Management:
The integration of Restock with Square provided real-time insights into inventory levels, enabling smarter and more efficient ordering processes. By analyzing historical sales data and predicting future demand, the system minimized excess inventory and significantly reduced food waste.
12% Reduction in Cost of Sales:
The automation of recipe management and real-time tracking of ingredient usage resulted in a 12% reduction in cost of sales, directly boosting profitability.
10% Reduction in Ingredient Waste: The smart inventory management system, supported by the integration of Restock with Square, led to a significant 15% reduction in ingredient waste. Predictive analytics ensured that inventory levels were closely aligned with actual demand, minimizing excess and spoilage.
15% Decrease in Labor Costs:
The implementation of robotics reduced the need for manual labor, leading to a 15% decrease in labor costs. Staff were reallocated to enhance the customer experience, contributing to higher customer satisfaction.
Accurate Cost Tracking and Variance Analysis:
The integrated system allowed the café to compare standard costs with actual costs, providing detailed variance analysis. This enabled the café to identify cost discrepancies and make informed decisions to improve cost management.
Business Keep specializes in operational consulting, providing tailored solutions to optimize efficiency and reduce costs. Our expertise in integrating advanced technologies, such as Restock with Square, enables businesses like this café chain in the US to overcome operational challenges and achieve sustainable growth.
