Skip to content



Reducing production costs by £149,000+ Business Performance Management Case Study


This food production business produced their fresh products from several kitchens located across central London. The business had not analysed its production workflows, capacity or cost base from a strategical viewpoint.

The business needed to reduce costs were possible, without impacting the overall production capability.

The business was running 4 separate kitchens to make products to meet customer demand.


To reduce production costs without impacting overall capacity or quality of output.


The work that we undertook with the client team included:

  • Reviewing ingredient their purchasing practices. i.e. do they small amounts often, or large amounts less frequently
  • Analysed and investigate the production workflows to understand the bottlenecks
  • Build modelling to understand capacity and production effectiveness
  • Changed production batch sizes and purchasing patterns to minimise bottlenecks
  • Modleled total capacity, including peak demand towards Christmas
  • Mothballed one kitchen (we were not able to close as the lease included a store which we wanted to keep)
  • Closed one kitchen
  • Staff were re-deployed to other kitchens, with natural staff attrition generating savings over several months. This step helped the operational teams reduce disruption.

During this project, it became apparent that the business was running with excess production capacity and the additional costs that this incurred.


The changes to purchasing and production patterns increased capacity as bottle necks were minimised. This allowed us to close two kitchens (out of four) and still maintain excess capacity compared with sales demand.

The reduction in headcount, rental, and kitchen running costs was over £149,000 per year.



Value created

Return multiple

Return over 1 year


Over 5 times

Return over 3 years


Over 15 times

We measure the return on investment as the ratio of what value the client receives compared to their investment with us.

About the Business

  • An SME business

  • Makes its own fresh products daily from its own kitchens

  • Sales of over £4m, with 70+ employees

Download our Guide

12 Ways to Improve Profitability in a Product Business

Read our Article

How to Find Opportunities to Build Value in your Business

Attend Taster Workshop

10 Steps to take before Launching a New Product

Business Model Design

Turning sellable products into successful businesses

Pricing Strategies for Profit

Delivering in depth pricing projects to increase confidence and profitability

Business Planning

Exploit more opportunities and experience fewer problems

Contact us today Call, email or message to add more value to your business

Emerson Nash logo

©Emerson Nash 2023 | Terms & Conditions