Achieving Return on InvestmentAchieving ROI


All corporate executives make capital investments based on the anticipated return on investment.  Technology investments are no different in that companies must understand the areas within the organization in which it can generate value.  This requires a clear outline and execution of the implementation and integration plan.  In the case of e*Restaurant from Altametrics enterprise solutions, many customers have seen significant returns on their investment through reduction in food costs, reduction of labor costs, and increased revenue.

When fully implemented, many customers realize savings between 3% and 6% of revenue.  The net impact to a restaurant’s bottom line can be quite significant, where net margins typically run between 2% to 5%.  The chart below outlines the impact to a restaurant based on 5% net margins.


Annual Sales Projected Savings  Profit Margin Impact
($ millions) (as a percentage of revenue)

3% savings 6% saving  3% savings 6% saving

10 $300k  $600k   + 60%  + 120%
50 $1.5 mil $3.0 mil  + 60%  + 120%
100 $3.0 mil $6.0 mil  + 60%  + 120%
1,000 $30.0 mil $60.0 mil  + 60%  + 120%

Reduction in Food Costs


Controlling food costs expenses can have a major effect on your bottom line.  e*Restaurant from Altametrics solutions offer unique features and functionality, all in one user interface, that can dramatically reduce food cost.  The typical client experiences a 2 - 5% food cost savings.  What are some of your challenges and how can you benefit from e*Restaurant from Altametrics?

Reduction in Food Costs
Food and Inventory Management Opportunities

Excessive Time
• Manually calculating order amounts
• Placing orders on web site/called in to distributor
• Taking physical inventory counts
• Inconvenience caused by call-in schedule
• Identifying major problems
• Using resources more effectively
• Training inconsistent
• Recording and reconciliation of transfers

 

Inaccuracies
• Order amounts
• Incorrect Physical inventory counts
• Lack of standard ordering methodology
• Non-integrated systems
• Non existent waste tracking
• Poor communication with Distributor
• Lack of forecasting tool
• Poor or inaccurate accounting of transfers

Other benefits include:
• Reduction of inventory levels by about 30% (achieved through more accurate ordering) 
• More accurate prep and production requirements

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