I had a guy working for me who was in charge of assembling set-ups. (This was before I got organized). One day I asked him, “When you’re doing a lunch set-up, how do you decide how many plates to include?”
His response was, “Two per person. I figure some people may need a second one, maybe more people will show up — we don’t want to run out of plates.”
“Hmmm,” I thought, “I should take a closer look at this.”
DOING THE MATH
- We were delivering 150 lunches per week, for an average of 15 people per order = 2,250 people served a week.
- 2,250 @ 2 plates per person = 4,500 plates per week
- At a cost of .09¢ per plate = $405 per week
After some debate we decided to provide 1¼ plates per person.
- So, instead of 4,500 plates per week, it was now 2,815 (1,685 less plates) @ .09 = $150 per week
- $150 x 50 weeks = $7,500
So, faster than you can say, “That should cover the cost of a nice weeklong vacation – for 2,” we added $7,500 to the bottom line by adjusting the quantity of ONE ITEM.
Just think of all the additional adjustments that could be made — napkins, forks, knives, bowls, beverage cups, mayo/mustard, etc.
(PS. Ten years later, 1¼ plates per person was working just fine.)
RELATED CONSULTING SERVICES:
Collaborate on or Write:
- Lunch operating Specs for YOUR guidebook
- Research Vendor Options for Lunch Products
- Research Vendor Options for Disposable Serviceware and Paper Products
- Negotiate Pricing and Terms with Vendors
- Train Your Staff