Hospitality Company Saves in Multiple Cost Center
The client is a multi-location Hospitality Company in multiple states whose properties provide lodging for business travelers, leisure travelers, long-stay travelers, budget travelers, and special travelers like people working with the government, airlines, and military. Each location provides services such as restaurants and bars, as well as catered banquet events for individuals and businesses.
While the economy and travel by all segments is strong, Expense To Profit was hired to determine if there were potential areas of savings they could immediately deploy.
They asked ETP to review its expenses for merchant fees, payroll and telecom (data, wired and wireless) services, energy, food, as well as waste management and recycling. ETP Consultants found both “hard” savings (money) and “soft” savings (process improvements) that will help the Company continue to fulfill its mission.
Market knowledge, proprietary tools, project experience and implementation assistance.
Our consultants were able to gather extensive and detailed information from suppliers and solution providers. We weighed all vendor responses based on a number of criteria important to the client, including quality, availability of inventory management tools and price-change notification policies.
We also reviewed existing and proposed contracts for improved pricing, incentives and discounts; arranged a “Vendor Day” so that suppliers under consideration could present alternative products that offered substantial savings; and assisted in implementation with a 30-60-day transition period after contract signing to implement the savings.
| Expense | Annual Savings | Overall Savings |
|---|---|---|
| Food Service | $664,000 | 22% |
| Telecom | $418,200 | 32% |
| Energy Supply | $342,800 | 14% |
| Payroll | $184,900 | 19% |
| Merchant Fees | $242,000 | 11% |
| Waste / Recycling | $429,100 | 39% |
