A group of high-end restaurants with 22 locations across the United States faced inconsistencies in various expense categories, leading to unexpected costs and budget overruns. The group's CFO engaged Mobilia Consulting to analyze these categories and ensure they received competitive rates and optimized service agreements despite being geographically dispersed and using many unique vendors.


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Objectives and Approach


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Mobilia Consulting's primary objectives were to analyze the group's merchant services, laundry and linens, solid waste removal, food costs, and propane expenses, identify inefficiencies, negotiate better contracts where applicable, and provide ongoing customer support to streamline operations. The comprehensive approach began with an in-depth review of all relevant invoices and contracts, revealing significant inconsistencies and unnecessary charges that inflated the group's costs.


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Merchant Services


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Through meticulous analysis, Mobilia Consulting identified areas for improvement in merchant services. Leveraging their expertise and industry knowledge, Mobilia negotiated a new contract, resulting in a 16% reduction in costs without any change in service quality. This latest contract ensured the restaurants received reliable merchant services while significantly lowering expenses.


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Laundry and Linens


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Mobilia Consulting thoroughly reviewed the group's laundry and linen expenses. Detailed analysis, strategic negotiations, and service level right-sizing revealed opportunities for cost savings, resulting in a 22% reduction in laundry and linen costs. By aligning vendor contracts with the most cost-effective terms and optimizing service levels, Mobilia was able to streamline this expense category.


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Solid Waste Removal


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Similarly, Mobilia Consulting reviewed the group's solid waste removal expenses involving six vendors. Detailed analysis and service level right-sizing revealed opportunities for cost savings. Mobilia achieved a substantial 32% reduction in solid waste removal costs by meticulously examining usage patterns and negotiating better rates with the vendors.


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Food Costs


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Mobilia Consulting also analyzed the group's food costs. Through strategic negotiations, Mobilia identified areas for cost savings, resulting in a 12% reduction in food costs without compromising quality or service.


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Propane


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The group's propane expenses were another area of focus. Mobilia Consulting negotiated better rates and terms, achieving a 34% reduction in propane costs while maintaining the same level of service.


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Ongoing Customer Support


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One of Mobilia Consulting's key value additions was providing ongoing customer support. This support ensured that the restaurants no longer needed to spend time managing these expense categories, relieving the operations leadership and individual General Managers (GMs) from these tasks. The AP team valued having a trusted partner to monitor invoices and ensure they were correct and optimized.


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Results


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The results of Mobilia Consulting's intervention were substantial. The group of high-end restaurants achieved a 16% reduction in merchant services costs, a 22% reduction in laundry and linens costs, a 32% reduction in solid waste removal costs, a 12% reduction in food costs, and a 34% reduction in propane costs. Mobilia Consulting's efforts in negotiating better contracts and optimizing service levels resulted in significant cost savings. Mobilia's ongoing support ensured the sustainability of these savings and allowed the restaurants to focus on their core operations without worrying about expense management.


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Stakeholder Satisfaction


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The CFO was very happy with the significant savings achieved. The AP team appreciated having a trusted partner to monitor invoices and ensure they were correct and optimized. The operations leadership was pleased as these tasks no longer fell to individual GMs and were now effectively managed at the corporate level without changing the vendors or service.


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Conclusion


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In conclusion, Mobilia Consulting enabled the group of high-end restaurants to achieve significant cost savings and operational efficiencies. By leveraging detailed analysis to optimize merchant services, laundry and linens, solid waste removal, food costs, and propane expenses, and providing ongoing customer support, the restaurants are now better positioned to manage their expenses effectively. Through a meticulous review process and strategic negotiations, the restaurants not only achieved immediate financial benefits but are also set up for sustainable financial health and efficiency in the future, instilling a sense of optimism.