Restaurants & Food Service ProvidersThe preference for less processed food and drinks is driving the requirement for fresh produce, made to order and customized restaurant menu items. Not only that, with 27% of all households consisting of just one person, the highest level in US history, the impact on restaurant menu design is becoming critical. In addition, the increase in ‘Empty Nesters’ will drive restaurant visit frequency up, whilst the increasing Mexican-based Hispanic population will continue to produce demand for authentic F&B products.
In Europe, dining out continues to drive growth across the UK, Germany, France and other European countries. Branded chains have claimed market share from independents with analysts predicting that they will own 43% of the European market by 2018. With the healthy-eating trend becoming ever more mainstream, the continent is facing similar challenges and opportunities to those of the US.
The challenges for the industry in both the US and the EU
- Increasing legislative and regulatory pressures
- Sluggish economic growth globally
- Labor cost increases
- Technology utilization
- Greater customer expectation and knowledge
- Intensified demand for consistent delivery of the Guest Experience (Quality, Service and Cleanliness)
Areas of innovation
- Introduction of lean-kitchen techniques that lead to labor efficiencies while lowering food waste and energy costs
- Comprehensive menu reengineering programs that simplify operations while helping increase traffic, which results in improved check averages and overall margin enhancement
- Restructuring of information technology infrastructure to maximize performance with minimal architecture
- Lower food costs through improved category management, better sourcing, and contract restructuring
- Reduced delivery costs through transportation management and distribution improvement
- Correcting noncore functions to result in lower overall costs of facilities, outsourcing of services like repair and maintenance, and capital project management
- Evaluating the consistency of portions to ensure the brand promise is met while controlling costs
- Enhanced sales forecasting and operations planning to minimize food waste and labor costs
- Improving in-store margins in the face of higher costs
- Generating profitable growth through the optimization of renovation and reimaging efforts
- Implement expansion plans domestically and internationally, particularly in Middle East, South America and Asia
- Developing pricing strategies, often with localized focus, such as for carbonated beverages
- Evaluating new markets of entry through demographic market area differentiation and facilities assessments
- Utilizing technology to improve customer choice – ways to book, ways to order, ways to pay, ways to recommend to others
- Increasing transparency – ingredient sources, allergen identification
- Development of labor scheduling to optimize the Guest Experience driving repeat guests and achieving the brand promise
- Implementing operational improvements to ensure that the brand promise is consistently met
In highly customer service orientated, fast turnaround businesses like restaurants it is vital to take a Total Value Optimization™ approach because of the high degree of dependencies between procurement, distribution and operations. When the time from raw material sourcing to customer consumption may only be a matter of hours, careful consideration must be given to what will have the most impact on customer satisfaction levels and operational cost.
What Maine Pointe Achieves
One of the largest QSR chains of its kind in the US with over 850 locations.
What we did
- Sourced food, beverage, and packaging categories involving 140 incumbent and prospective suppliers, creating a heightened level of competition for the business
- Introduced Total Value Optimization (TVO™) processes to the client’s team and reinforced them through practical application and one-on-one coaching
- Developed and implemented a Procurement Management Operating System (PMOS) to improve cycle times, performance management, early identification of variances to plan and results sustainability
- Achieved an 8:1 ROI across the franchise system resulting in a near 2%reduction in food cost at the store level
- Created strategic partnerships that enhanced our client's reputation with its sellers
- Enhanced the professional environment with an increased emphasis on planning, execution and category leadership
One of the largest Mexican fast food chains in the US with more than 500 company owned or franchised locations.
What we did
- Developed strategy, improved communications and helped established openness to listen to the supply base about market conditions and innovation within critical categories
- Conditioned the supply base to deliver better results
- Achieved over $5M in savings from a spend of $120M across the corporate and franchise system (all restaurants)
- Improved supplier relationships
- An increased emphasis on planning, execution and category leadershi
- Improved thought process for conditioning and negotiation with all suppliers
We brought Maine Pointe in to help us review our key food and beverage categories, and to identify cost savings opportunities along with a sustainable procurement process. They delivered nine training modules from 'Supplier Conditioning' all the way through 'Implementing Supplier Agreements' as well as 'Improving and Building Supplier Relationships'. These modules will help us to monitor current and future market conditions, to maintain quality and consistency, and improve food costs throughout our restaurant system."
Paul Murphy, President and CEO, Del Taco Restaurants