Expense Reduction Analysts helps Oporto secure improved pricing

The Challenge

Oporto Chicken is a franchise which has grown successfully from operating one store in North Bondi in 1986 to a franchised network of approximately 100 stores across Australia and New Zealand.

As early as 2005, the company decided that it would pursue an environmentally friendly policy in relation to their packaging especially targeted at the use of approximately seven million plastic bags each year within the stores.

This change in policy did not come without its challenges for a number of reasons, primarily being cost related i.e. supplying a paper bag versus a plastic bag would result in an increase in costs of approximately three times resulting in an increase in running costs for franchisees.

The Expense Reduction Analysts Solution

Avron Newstadt, a consultant with Expense Reduction Analysts cost management consultancy franchise, approached the management of Oporto offering to assist them to negotiate improved pricing on their packaging.

As a result of the Expense Reduction Analysts' tender process and leverage, Oporto's existing supplier offered to match the price of one of the alternative suppliers, resulting in a 13% saving without a change in supplier and without any disruption to the important distribution relationship.

Glen Lees the CFO of Oporto said, "Expense Reduction Analysts was of great assistance in the process of negotiating improved pricing with our current supplier. We have used Expense Reduction Analysts to secure us savings on energy and are currently using Expense Reduction Analysts to assist us with insurance and printing reviews across ourfranchise network."

Project Information

• Category - Packaging
• Industry - Fast Food Franchise
• Client Spend - $431,000
• Savings - $54,000