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CHMWarnick

Home / Why Avendra / Industries We Serve / Customer Success Stories / CHMWarnick

Avendra Helps Give a Historic Hotel New Life

The Avendra Consulting Services team helps a savvy hotel asset management group take a flagship property to new highs in operational efficiency and guest experience

Challenge: Continuous Improvement in Service & Style
CHMWarnick is a globally recognized leader in hotel asset management, with more than 60 hotels and $15 billion in its portfolio. After implementing a $30 million renovation and rebranding program on a prestigious historic hotel in Washington, D.C., the firm wanted to advance its strategy of continuously driving value and improving total guest satisfaction on the site.

The hotel was already an active Avendra customer with well-coordinated purchasing programs, but CHMWarnick saw more opportunity. Michael Doyle, Managing Director and Executive VP of CHMWarnick, asked the Avendra Consulting Services team to take a look. “We were already at a good performance level,” said Doyle, “so this was a deep dive into improving margins and asset value.”

Specifically, the firm was looking for opportunities to streamline processes and gain control over rising costs—without compromising the high-level expectations of the luxury brand.

Doyle credits Avendra’s flexible approach with motivating in-house staff and assuring them of continued high quality standards. Any pushback on a recommendation was countered with additional options – and if all else failed, Avendra was willing to conduct blind tests to prove results.

They were smart, patient and thoughtful in their recommendations.
Michael DoyleManaging Director and Executive VP, CHMWarnick

Solution: Impact the Bottom Line and Better Serve Guests
The ACS team embedded in the hotel’s day-to-day operations, measuring, documenting and analyzing everything from menu management and dining experience to room operations and engineering. Just as they do for every customer, they designed the study and analysis to fit the special needs of the CHMWarnick property.

“They looked at everything not just from a cost perspective, but also through the eyes of a guest,” said Doyle. Years of combined foodservice, hospitality operations, and supply chain management expertise gave ACS a unique perspective on both cost and brand impact.

After a few weeks, ACS identified several key areas to better manage the business, according to Doyle. Even more important, they used a straightforward, well-documented approach to present their recommendations.

“What we appreciated was how thorough Avendra’s reports were, how logical their recommendations were, and how collaboratively they worked with the staff,” said Doyle.

Cory Dellinger, Director of Avendra Consulting Services, explains the approach and methodology. “Anyone can come in and simply recommend using cheaper product alternatives or cutting back on services. We take pride in diving deep to find unique solutions, while always balancing the practical effects of cost savings with guest expectations and quality.”

An F&B Success Story
One category that stands out in terms of dramatic impact was F&B. In fact, Avendra’s recommendations added up to more than $225K in profit improvements on an annualized basis.

Some of the recommendations included:

Menu Management: After analyzing food cost metrics by outlet, ACS advised tightening up on documentation to determine profitability and adjusting for low-performance menus items on a quarterly basis.

Product Cost Management: To take advantage of seasonal price fluctuations, ACS recommended regularly adjusting recipes and menus to feature equal- or higher-quality, lower-priced product and menu alternatives.

Documentation of Sales: Avendra demonstrated how more specific accountability on the register would produce more meaningful analysis in purchasing and food usage.

More than Efficiency Improvement -> Change Management
Beyond time and cost savings at the CHMWarnick property, ACS’s collaborative style led to improved esprit de corps among hotel employees, who can sometimes be resistant to outside advisors. Contrary to other consulting groups, ACS fostered teamwork that made implementation of the recommendations faster and easier.

According to Michael Doyle, “Not only did these guys have data to back up every recommendation, their attitude made it clear that they were working in everyone’s best interest.”

In fact, part of the ACS engagement involves following up with the on-site staff after the study is complete and supporting their relationship as Avendra customers. “We pride ourselves on forging lasting relationships, said Dellinger. “And we can relate to a GM’s or chef’s challenges because we have decades of experience living and breathing hotel operations.”

Based on the success of this experience, CHMWarnick has engaged Avendra for similar services on numerous additional properties over the next year.

Client Benefits:

•  Collaborative partnership with hotel purchasing and operations experts
•  Resources and focus on key issues in the industry
•  Sensitivity to brand standards and leadership
•  Team building skills that motivate and support employees
•  Detailed reporting and diagnostics customized to individual properties
•  Techniques for improving and maintaining recommended changes
•  In-depth expertise in front of house and back of house hotel operations
•  Pragmatic, systemic recommendations based on business goals and strategy

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Building a legacy of industry leadership

Avendra is North America’s leading hospitality procurement services provider. Our supply chain management solutions are tailored to our clients’ business strategies and deliver benefits beyond great savings. We combine years of hospitality expertise, purchasing power, services and software to help customers impact the bottom line, improve operational performance, and better serve guests. More than 16,500 customers rely on Avendra as a trusted partner. Avendra is headquartered in Rockville, Maryland and has regional offices throughout North America.

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