Cost management increases profitability by taking the heat out of the kitchen
Roast, a privately-owned restaurant, was opened in Borough Market, close to the City of London, nearly six years ago. Roast is dedicated to traditional British cooking using fresh seasonal produce sourced entirely in the UK. It has seating for 110 on two levels, and currently caters for between 2,500 and 3,500 customers per week, depending on the time of year. Since opening in 2006, Roast has added two takeaway outlets to their flagship restaurant: Roast to Go in Borough Market and Roast Westfield in Shepherd’s Bush.
Iqbal Wahhab, founder of Roast Restaurant, first came across Consultants Claire Power-Browne and Ravi Khakhria from the Auditel Cost Management network at an Institute of Directors (IOD) event. The company were sponsoring one of the Director of the Year Awards. Iqbal was impressed by their service offering. He appointed them to run the rule over Roast’s business costs. Sergei Gubars, Roast’s General Manager and Wine Buyer, takes up the story. “Roast has been a success from day one. We are very busy and the restaurant is full, but I felt that we could probably increase our net profits by taking a closer look at our expenses.” Sergei liked the fact that Auditel did much more than talk a good game. “I was pleasantly surprised by Auditel’s approach. It was not at all aggressive. It was clear that they were experts at what they said they could do and weren’t afraid to go the extra mile.”
The first project they were asked to work on was the gas supply. This has now been completed and, as a result of their expert analysis, Auditel have delivered savings for Roast of a massive 52%.Sergei and Iqbal Wahhab were delighted. Not just because of the savings, but also by the way Auditel worked with them. Sergei continues, “Working with Auditel is very easy. They are always on the case and ready and willing to provide feedback and follow-ups when asked. The money they have saved us so far is great news. It will be used directly to improve the customer experience, allowing us to add improvements to our interior design and air conditioning.”
With a new kitchen suite about to be fitted, Auditel are now carrying out an examination of the electricity supply as well as following up concerns about the level of Roast’s water bills. The latter has led to a survey carried out by Auditel and further investigative work in conjunction with Borough Market to see what can be done. They are also engaged in looking at Roast’s print costs and are working hard to ensure that the ethical and green buying policy of Roast is upheld throughout the process. And they have also been asked to look at the management and hosting of Roast’s website.
Roast value Auditel’s on-going management expertise in lowering their costs and increasing their net profits in the highly competitive restaurant sector. Sergei concludes, “I really like working with Auditel, they do a great job and I look forward to continuing to work with them in the future. I would highly recommend them to other businesses.”
Laurence Knott, Auditel’s Head of Marketing, adds: “Following the recent successes with The Lady magazine and Silver Springs Soft Drinks, this is another example of how effective cost management enables businesses to maintain their profit margins in these difficult trading times.”
Established in 1994, Auditel is the premier cost and purchase management consultancy in the UK with thousands of clients ranging from small businesses to global brands such as Pizza Express, YMCA and Oxford University. Auditel delivers their services across all areas of business expenditure. These include costs as diverse as communications, energy, water, office supplies, freight, contract cleaning, merchant cards and general waste. With a combination of their unique Total Cost of Purchase® business model and a contingency-based fee structure they make impressive and sustainable savings– without it costing their clients a penny. There are no up-front fees, no hidden charges and no extras.