This Member was looking for a way to improve the financial performance of 290 managed hotel properties, focusing on the regional meat and seafood portion of their food and beverage spend. It was important to the Member that they be able to achieve their savings targets without impacting quality or forcing any menu changes.
Foodbuy proposed moving all regional meat and seafood spend at the company’s managed properties to Foodbuy contracts and suggested executing a market basket analysis for two of the properties as a proof of concept. A market basket analysis involves evaluating prices for currently purchased items and matching them to the prices for those items if they were purchased on Foodbuy’s agreement. The market basket analysis showed significant savings, which led to the Member converting to Foodbuy’s programs.
- Market basket analyses for the two properties showed savings of 12.3% and 12.6%, respectively, if the properties utilized the Foodbuy regional meat and seafood contracts instead of their existing agreements.
- The Member agreed to convert all 290 managed properties to Foodbuy regional meat and seafood programs by Q1 2021, which represents more than $16 million in total purchasing volume.