Southernmost Restaurant Group features some of the finest dining in Florida and owns four signature restaurants in the Key West Area. Alonzo’s Oyster Bar, A & B Lobster House, Half Shell Raw Bar, and Turtle Kraals all represent a variety of dining experiences and some of the highest quality and freshest food available.

Challenge

Prior to using Compeat, Southernmost was managing their inventory using the methods of the prior owner. All inventories were kept on spreadsheets and management was given the task to keep these updated and accurate. However, upper level management discovered that food and beverage actual costs nearly always came in at the same level, and generally within a half of a point of their spreadsheet theoretical (ideal) costs. This raised red flags regarding the accuracy and integrity of the spreadsheets.
Southernmost’s Daily Sales Reports were also maintained on spreadsheets and were entered once a week into their accounting system. The four restaurants and the accounting office were on entirely separate systems which made for double entry and endless reconciling. The unreliable inventory spreadsheets, manual entry of daily sales, and lack of unification between the four different restaurants caused for a large amount of time/money being wasted on administration.

“It would take an entire accounting period to close the books and even then I wasn’t confident that the food and beverage costs were accurate.” – Theresa Rothaus
Director of Operations

Solution

It was very clear that the manual systems in place at Southernmost were completely inadequate for a multimillion dollar enterprise. Theresa Rothaus, Director of Operations for Southernmost said, “I was highly motivated because it would take an entire accounting period to close the books and even then I wasn’t confident that the food and beverage costs were accurate.”
Southernmost decided to take full control of their inventory and sales tracking and replace their spreadsheets with Compeat in April 2004. “With the ability to count more frequently and accurately, we gained control of our inventory and were able to manage our food and beverage costs more effectively,” says Rothaus.
Though very reluctant in the past to tie themselves too closely to a third party for their accounting, Southernmost gained enough confidence in Compeat Advantage to take the plunge. The transition was seamless and they instantly had an integrated inventory and accounting system. ”We became confident that Compeat did not sell a module until it worked properly. Once we knew this we were comfortable in integrating Compeat Payroll, Compeat Commissary, and Compeat Mobile.”
Southernmost operates a central fish house where they cut fish delivered directly from the boats and distribute the filleted product to each of their restaurants. Compeat’s portioning capability dramatically increased the accuracy of the seafood costs. The Commissary function completely automated the distribution process. “The complete revamp of our seafood distribution system saved endless hours of computer input and inevitable errors,” says Rothaus.

“With the ability to count more frequently and accurately, we gained control of our inventory and were able to manage our food and beverage costs more effectively.” – Theresa Rothaus Director of Operations

Reward

Since implementing Compeat, Southernmost has seen a total food cost savings of 2% and a beverage cost savings as high as 3%! Along with reducing costs, Southernmost has been able to increase efficiencies and reduce the workload of their managers. These benefits not only resulted in increased job satisfaction, but also saved them one full time employee.
By having an integrated back office and accounting system, Southernmost was able to eliminate a huge amount of administrative work, giving the managers a lot more time to focus on employee and customer satisfaction.

Going Forward

Southernmost Restaurant Group has grown to include four restaurants, a bar, a package store, and a delicatessen. They’re currently using Compeat to its full capacity in all of their concepts and plan on adding new Compeat products to their suite.

 

 



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