The Challenge
A farm-to-fork restaurant chain operating 12 outlets with direct farm sourcing and 25+ B2B corporate clients was facing significant operational challenges:
- High wastage rates (15-20%) due to unpredictable demand and perishable inventory
- Inconsistent profitability across outlets despite similar menus
- B2B contracts locked in at fixed prices while input costs varied dramatically
- Manual reconciliation taking 12-15 days per month
- No visibility into which products/outlets were profitable
The Solution
1. Real-Time Wastage Tracking & Prediction
We implemented item-level wastage tracking across all 12 outlets with ML-based demand forecasting. The system learned seasonal patterns, weather impacts, and local events to predict demand with 92% accuracy.
2. Dynamic Pricing Engine
Built a dynamic pricing system that automatically adjusted menu prices based on:
- Current inventory levels and expiry dates
- Vendor price fluctuations
- Competitor pricing in each location
- Demand forecasts for upcoming days
Examples: Reduce prices on high-inventory items nearing expiry, increase prices on high-demand items with limited supply.
3. B2B Contract Optimization
Analysed all 25 B2B contracts to identify loss-making relationships. Provided data-backed recommendations for contract renegotiations:
- Implemented price escalation clauses tied to ingredient costs
- Adjusted minimum order quantities based on profitability analysis
- Renegotiated payment terms to improve cash flow
- Exited 3 consistently loss-making contracts
4. Automated Reconciliation
Unified all POS systems, delivery platforms, and ERP data. Automated daily reconciliation reduced manual work from 12-15 days to 2 hours per month.
The Results
Wastage Reduction
From 15-20% to 5-7% through better demand forecasting and dynamic pricing
Margin Improvement
Across all outlets through contract optimization and pricing changes
Monthly Savings
Combined impact of reduced wastage and improved contracts
Reconciliation Time Saved
From 12-15 days to 2 hours per month
Client Testimonial
"PhyloAI gave us visibility we never had before. We knew we had wastage, but didn't know where or why. Now we can see in real-time which items are at risk, which outlets need attention, and which B2B contracts are actually profitable. The dynamic pricing alone paid for the platform in the first month." - Founder & CEO