Many franchisors are looking for solutions to help franchisees preserve their margins. Tutti Pizza has made the strategic choice to work primarily on the back office, with a focus on optimizing purchasing and inventory management.
"It is in this context of uncertainty that we decided to offer all our franchisees an inventory management solution that is easy to use and that allows us to manage our margin with precision in the face of rising raw material prices." Sébastien Bori, director of the Tutti Pizza network.
And the results are already there, as Julien Bori, director of the Tutti Pizza network and owner of two branches, explains: "Thanks to Inpulse, we have reduced our losses in a few weeks. Thanks to Inpulse, we have reduced our losses in a few weeks, we buy better, we have already saved 5000 euros on the first quarter of 2023 on our two branches".
Reduce your material cost in 2 months
To maintain profitability, you have to be extremely precise about your purchases and your consumption of raw materials, as Damien Plessis, a multi-site franchise manager with 16 years of experience in the restaurant business, points out:
"The Emmental carton has doubled since January 1, 2022. Putting 10g more cheese on a pizza in 2021 and today does not have the same impact on the margin. The slightest slippage can be counted in thousands of euros, and we monitor consumption variations every week with Inpulse. Despite inflation, we've gained two margin points."
"We have fewer stock-outs and have been able to modify our product mix by highlighting our high-ratio pizzas on our menu. We've been smart about our approach to promotions, choosing the right products for promotions and limiting the impact of rising raw material prices.
"Before, we were more carefree, we were not at 2 or 3% margin, it is so thin since 2019, that we need a very precise inventory management. We can't pass on rate increases to the end customer, there are inevitable salary increases and fixed charges, there is little room for maneuver, we no longer have a choice, we have to react quickly."
Analyze and react more quickly
"When I was working in Excel, I didn't have a reliable theoretical margin, it's complicated to gather information from the different sales channels that are multiplying. And especially, there are months when we had no time at all to put the numbers together, so we could go a quarter without knowing our margin. With Inpulse, we have a reliable theoretical margin and we started analyzing our top 10 SKUs every week."
"This brings to light unusual losses in a restaurant, for example. But we also had the case once of a new pizzaiolo who did not put enough in the dishes, that is also important, if we are not generous enough, we lose in quality. We didn't see it because on average, all the restaurants were in line with the desired cost of materials. It was because we had access to granular data, by point of sale, that we discovered the problem and were able to restore compliance on these two restaurants." Damien Plessis
Implementing good practices
"They have better control over the goods delivered, the number of credit note requests has exploded since we put Inpulse in place. We can generate them automatically on the tablet, we don't miss them anymore. After a month, we saw the first effects, the impact on material cost is amazing."
"We have also succeeded in improving inventories and monitoring stock transfers, which are essential steps in verifying actual consumption. We have raised the awareness of our teams by giving them access to performance data: material costs, consumption variances. They have a bonus on the margin objectives. They have got to grips with the tool and that motivates them, they have confidence. Some of them manage to have stable stocks. They can see their inventory errors, if they have forgotten a stock transfer for example.
Focus on the tasks that are most valuable
"At headquarters, we save a lot of time spent on analysis. At the accounting level, on inventory valuation, invoice reconciliation, and especially have access to margin as early as the 2nd of the month, which I didn't have before."
"The managers have been able to delegate and increase the skills of the operational staff: now, the pizzaiolos place orders when they didn't do so before. They have saved time on placing orders thanks to the generation of automatic order forms, and this time, they use it to place, analyze, they become real managers."
If you'd like to see a demonstration of Inpulse, ask for an appointment with an expert today to discover what Inpulse can do for you.