Case study: Strategic overhaul of food production for one of Ireland’s esteemed retailers

The conundrum

A paramount food retailer in Ireland, with an extensive network of 12 stores and 5 café/restaurants, suspected an annual deficit nearing €3 million. The root of this financial haemorrhage was obscured by the absence of a detailed departmental profit and loss account, compounded by a lack of clarity on the actual cost of food production. Despite witnessing volumetric growth, their food production methods were antiquated, with the central production kitchen likened to an overextended restaurant kitchen. The expertise of a specialist in manufacturing and supply chain management was sought to refine and enhance the operational efficacy of their food production and distribution.

Tomcio’s operational excellence

Tasked with this formidable challenge, Tomcio embarked on a mission to not only identify but systematically eradicate inefficiencies. With a reputation for turning quandaries into quantifiable successes, Tomcio’s methodology was to integrate manufacturing and supply chain proficiency with the retailer’s culinary excellence.

€1m revenue achievement unlocked within 6 months

1. Inception of Departmental Profit and Loss Accounts: A comprehensive understanding of the business unit was attained, unveiling the true financial narrative and bolstering revenues by circa €1M.
2. Precision in Production Costing: Accurate cost determination led to informed transfer pricing, elucidating the true margin of each Stock Keeping Unit (SKU).
3. Stock Control and Replenishment Synergy: Implementation of a stock control link with the stores, transitioning from forecast-based to demand-led production, yielded a €400K decline in markdowns and waste, alongside a €190K labour cost reduction.
4. Modernisation of Food Production Methods: A shift from manual to automated cooking solutions escalated production efficiency, quality, and volume, delivering labour savings of €261K, a reduction in single-use plastics by €52K, and ingredient cost savings of €300K.
5. ‘Buy vs Make’ Analysis: An exhaustive analysis culminated in the consolidation of bread production, which further reduced labour costs by €319K.

The €1.5m culmination

The concerted efforts materialised in a €1.5M cost reduction and the transformation of the Central Production Kitchen into a powerhouse capable of insourcing bulk food production, fostering an avenue for revenue augmentation exceeding €1.5M. This strategic pivot not only addressed the financial conundrum but also equipped the retailer with the capacity and capability to elevate their culinary offerings

The Tomcio distinction

Tomcio will become synonymous with precision, efficiency, and strategic foresight in the food and beverage production landscape. This case study exemplifies our commitment to bridging the gap between culinary artistry and operational excellence, ensuring our partners not only survive but thrive.

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