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Case Study: The Beer Hall

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Cheers everyone...!

The Beer Hall at Everards Meadow is a beautiful, contemporary, relaxed & totally unique venue for eating and drinking that also houses the Everards Brewery, retail shop and brewery tour and is surrounded by acres of community green space near the heart of Leicester.

Since opening in May 2021, the business has seen incredible customer demand and significant growth
continuing into 2022. Like most new businesses they faced numerous challenges but adding post
pandemic staffing issues, market cost inflation and the removal of government support for the hospitality sector and it was not a surprise that food profitability was a challenge.

Profit Hound were already working with Everards on projects, and it was an easy decision to start what
would prove to be a very successful partnership in April 2022.

"“Simon is a first-class operator, deeply knowledgeable about the whole food supply chain. He
delivers support and advice with wisdom, patience, and care. He always builds confidence and clarity resulting in fabulous team and commercial growth. I would highly recommend. In a fast-paced trading environment it’s important to work with people you can trust, ultimately this is Simon’s enduring point of difference."

- Stephen Gould, Managing Director at Everards Brewery Ltd

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Whilst the Beer Hall had a kitchen team Everards wanted to partner with an experienced menu manager with food supplier experience. By doing this they felt more consistency could be achieved. 

The Beer Hall opted for The Full Profit Package which includes taking Full Responsibility for Food Profitability and delivered savings of 10% or £32,000+ YOY in the first six months. 

However, the impact of food inflation and a return to 20% VAT means the reality is that  savings exceeded 15%!!

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"Profit Hound delivered some terrific and timely support and the benefit we felt was instant. Simon’s industry knowledge, ability to identify the issues and develop pragmatic solutions meant we were able to get back on track quickly with minimal and very positive impacts on the operational team. I would recommend Profit Hound to any hospitality business."

- Iain Jackson, Operations Director at Everards 

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So what happened next?

Purchasing Benefit

Electronic spend data was gathered from all incumbent suppliers and used to price match the entire basket and make procurement recommendations and the following savings:

  • Meat – 17% savings were achieved by introducing a secondary supplier for burgers and chicken fillets, this was the only new supplier introduced by Profit Hound!

  • Grocery & Frozen – 9% savings were achieved by effectively using both incumbent suppliers via additional effective price file management and accurate price matrix. 

  • Produce, Dairy, Fish and Bakery - suppliers were left in place and untouched.

Additional Purchasing Benefit

The data was also used to quantify the benefit of looking at alternative products. The following were presented, tasted, and approved for quality approved. 

  • Bacon - £1,300/month saving switching from a dry cured to regular product

  • Burgers - £500/month saving moving to Red Leicester also added food provenance

  • Steak & Ale Pies - £400/month saving by switching from the bakery to the incumbent butcher, the butcher in turn switching their ale supplier to Everards!!

Purchasing Management

Effective and regulated ordering was always going to be a key part of the process.

  • Purchase Order System - TBH had a system, but the prices were updated off invoice.  Profit Hound met with all suppliers and agreed price files and price holds that were used to drive the Purchase Orders and a weekly variance exception report was implemented via the accounts team.

  • Chefs Order Sheet – the purchase order system worked well for accounts, but the kitchen team found it cumbersome, so a bespoke and user-friendly order sheet was developed to support food ordering. 

Menu Development

A new menu was at draft stage as Profit Hound were appointed and it was clear to see there were opportunities for improved profitability with some subtle changes 

  • Menu Design – the layout was developed to highlight the service periods, promote high margin dishes and highlight upsell opportunities. 

  • Brunch – a “Small English” was added to the traditional “Full English” to give guest choice and allow us to stretch the price point.  A named local farm omelette was added as a highly profitable and popular full breakfast option.  

  • Costings & Tariffs – costings were completed and some tariffs, especially volume dishes, required increases to achieve the budget margins. Hot beverages were circa 20% below typical market pricing and amended to capture that benefit.

Monthly Purchasing Review

Electronic spend data and invoices are reviewed for supplier overcharges, adherence to buying lists and new purchasing opportunities meaning benefit is always maximised and the senior leadership team are fully up to speed with developments. 

Additional Support from Profit Hound

Simon and his contacts have helped us identify the potential for a new and totally separate outdoor kitchen facility that can help us manage the busy summer dining spaces of circa 300 covers plus the community green spaces.

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Profit Hound take No Supplier Payments and have No Nominated Suppliers for Ultimate Flexibility. 

"Simon has met with all our suppliers who have embraced this fresh approach and suppliers understand that Profit Hound work solely for the benefit of The Beer Hall and we have experienced very little change but plenty of benefit.”

- Stephen Gould, Managing Director at Everards Brewery Ltd

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