Kerbey Lane Cuts Costs and Improves Efficiency

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COMPANY OVERVIEW

Kerbey Lane opened their first location in a small house on Kerbey Lane in Austin, TX in 1980. Today they have 10 restaurants and pride themselves on their seasonal menus and locally grown ingredients.

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BUSINESS SITUATION

Prior to Compeat (now R365), Kerbey Lane’s operational and financial information was dispersed across several different systems. They also did not have any type of purchase order system in place making their ordering inefficient and the process tedious.

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KEY RESULTS

After implementing Compeat in 2012, Kerbey Lane immediately benefited from having all of their POS information polled into one system and seamlessly integrated with accounting. They were also able to expedite their ordering process with Compeat electronic ordering. Additionally, Kerbey Lane cut their food costs by 1.5% of sales within the first 6 months of using the software!

Kerbey Lane Cafe

Background

Diverse, adventurous, socially-conscious, fun—Kerbey Lane Cafe embodies what’s best about Austin Texas. They opened their first location in a small house on Kerbey Lane in 1980 when they sensed a market for affordable food cooked with fresh, locally grown ingredients. Still today, they pride themselves on their seasonal menus, with many ingredients purchased from local farms and vendors, ensuring freshness and a unique Austin taste.

Challenge

Prior to Compeat (now R365), Kerbey Lane’s operational and financial information was dispersed across several different systems. Point of Sale information was in one place, inventory and food cost in another, and financial information in still another. At the end of the day or period, their data never seemed to balance and they spent too much time reconciling.

Inventory and ordering was also a headache for Kerbey Lane. Without any type of purchase order system in place, their ordering was inefficient. They would manually figure out quantities to order, call each food supplier and order over the phone and receive deliveries without a way to validate them to the original order. Invoices would come into the restaurants, be sent to accounts payable and a check would be written for each store. The process was tedious and prone to errors.

Kerbey Lane Cafe
Kerbey Lane Cafe

Solution

Kerbey Lane realized they needed one fully integrated system that could meet all of their operational and financial requirements. They decided to replace their Aloha Inventory and MAS90 accounting system with Compeat. They went live with Compeat software in all five of their locations, plus their commissary, in June 2012.

Kerbey Lane immediately benefited from having all of their POS information polled into one system for Daily Sales Reporting and integration to accounting. “With Compeat, we save a huge amount of time by not having to do so many checks and balances. Compeat gives us confidence that our numbers are always correct,” says Michael Jackson, Director of Restaurant Logistics for Kerbey Lane.

Compeat’s electronic ordering greatly expedited Kerbey Lane’s ordering process. Now they simply enter new order quantities into their standing order. A purchase order automatically goes to the vendor, the restaurants validate the delivery to the original order, the vendor invoices automatically go to accounts payable, and accounts payable only needs to print one check per vendor. “Our food supplier was not previously compatible with Compeat’s electronic ordering feature. I called Compeat and they developed the integration for us. Compeat’s customer service is unbeatable”, says Jackson.

Results

Kerbey Lane has always taken pride in keeping relatively low food costs, so they were pleasantly surprised to see that Compeat cut their costs by 1.5% of sales in the first 6 months of using the software! “This food cost savings is amazing considering we have only been using the software for a short period of time and still haven’t used it to its full capacity. I can only imagine how much our costs will be cut going forward,” says Jackson.

Kerbey Lane continues to expand and evolve, but no matter what else changes, the quality of their ingredients and passion for making fresh, delicious, affordable food for the Austin community remains constant. Compeat is Kerbey Lane Cafe’s newest fresh ingredient and part of their recipe for success.

“This food cost savings is amazing considering we have only been using the software for a short period of time and still haven’t used it to its full capacity. I can only imagine how much our costs will be cut going forward.”

– Michael Jackson Director of Restaurant Logistics

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