This well respected College has run its own catering service for a number of years however the costs were beginning to spiral upward. The client contacted Touchstone requesting a review of the operation and suggestions/recommendations for its future. We concluded that placing the service with a contractor would only add to the subsidy.
We worked with the client to identify where costs savings could be made, introducing a number of new suppliers with contracted prices. This enabled an increase in the gross profit of 6% without any alteration to the tariff. Second year students picked up on the fact that the prices had not increased and as a consequence sales from this group doubled. The additional turnover contributed an additional £8,000 towards the subsidy and the improved gross profit a further £5,200. This reduced the subsidy from £21,000 to £7,800 in the first year.
In the second year we introduced a chilled display unit in the bar which increased sales by a further 8% bringing about a surplus at the end of that financial year of £3,400.
Touchstone has also developed a comprehensive HACCP system for use in the business leading to the site improving its “scores on the doors” rating with the local Environmental Health Department. We also undertake bi-annual health and safety and food safety audits to ensure compliance and assist the manager in improving standards.