Case Study 1:
Client Profile
- 13 operating locations
- 3 restaurant brands
- Central kitchen
- Central warehouse supplying all branches
The Challenge
Despite having centralized production and storage, the group was experiencing significant monthly inventory variances across locations. Key issues included:
- • Weak stock control procedures at branch level
- • Inconsistent inventory counting practices
- • Lack of standardized recipe usage
- • Poor visibility between warehouse dispatches and branch consumption
- • No structured variance analysis process
Orea’s Intervention
Orea Consulting implemented a structured cost control and inventory management framework across the entire operation. Key actions included:
- / Standardized inventory control procedures across all locations
- / Implementation of unified stock counting methods
- / Alignment of central kitchen production with recipe-level consumption tracking
- / Strengthening controls between central warehouse dispatch and branch receipt
- / Introduction of variance reporting and investigation mechanisms
- / Training branch and warehouse teams on control discipline and accountability
The Outcome
Monthly inventory variances reduced from $30,000–$35,000 to approximately $2,000 across all 13 locations. Improved stock accuracy, accountability, and margin protection.
Impact
The client moved from reactive loss management to structured operational control, turning inventory management from a financial risk into a controlled process.
Case Study 2:
Client Profile
- 23 operating locations
- 3 restaurant brands
- Central kitchen
- Central warehouse
The Challenge
The client was unable to accurately determine their true theoretical food cost. While branch sales and purchases were tracked, major cost components from the central kitchen were not properly calculated or allocated. Key issues included:
- • Incomplete cost capture at central kitchen level
- • Production losses and inefficiencies not reflected in branch costing
- • No structured allocation model for central production costs
- • Mismatch between theoretical and actual cost of sales
- • Financial reports not reflecting operational reality
Orea’s Intervention
Orea Consulting restructured the central kitchen cost framework and built a proper cost allocation model across all locations. Key actions included:
- / Full cost mapping of central kitchen operations
- / Identification of unaccounted production-related costs
- / Development of standardized cost allocation methodology across brands and branches
- / Integration of central kitchen output with recipe and consumption tracking
- / Adjustment of reporting structures to reflect real theoretical cost
- / Strengthening operational controls within the central kitchen
The Outcome
Accurate theoretical cost calculation across all 23 locations. Financial reports now aligned with operational reality for improved decision-making.
Impact
The client moved from estimated costing to data-driven margin management, transforming the central kitchen from a cost blind spot into a controlled and measurable operation.
Case Study 3
Client Profile
- 5 operating locations
- 5 different restaurant brands
- Independent concepts under one ownership
The Challenge
The client was operating multiple brands without a structured operational or financial foundation. Core systems required for control and profitability were either missing or inconsistent. Key issues included:
- • No standardized recipes
- • Inaccurate or missing recipe costing
- • Pricing not linked to target margins
- • Lack of structured cost control processes
- • No integrated system supporting inventory and reporting
Orea’s Intervention
Orea Consulting built the operational and financial structure from the ground up. Key actions included:
- / Development and standardization of all menu recipes
- / Full recipe costing across all brands
- / Menu pricing aligned with target food cost percentages
- / Setup of cost control procedures and inventory structures
- / Implementation of operational systems to support reporting and control
- / Alignment between kitchen operations, purchasing, and financial tracking
The Outcome
All brands operating with standardized recipes and costing. Menu prices aligned with profitability targets and structured control processes in place.
Impact
The client transitioned from loosely structured operations to a controlled, system-driven business model, providing a stable foundation for performance and future growth.