Protecting Margins at Lake District Country Hotels
The Context
One Cost had worked with Lake District Country Hotels for over ten years, supporting food and beverage procurement across its three boutique properties and high-end café. During this time, operating costs across the hospitality sector rose significantly, including increases in National Insurance contributions and the National Minimum Wage.
As margins became more constrained, maintaining gross profit (GP) targets without passing price increases onto guests became a key priority. Having already delivered consistent pricing improvements through group purchasing arrangements, One Cost’s role was expanded to include a fully managed procurement function.
Our Approach
One Cost reviewed existing supplier agreements across the group to identify opportunities for improved pricing. Beverage rates and retrospective rebate arrangements were renegotiated mid-contract to secure additional savings.
A monthly benchmarking process across food suppliers was implemented using Handling Data and One Cost’s internal benchmarking tools. Pricing was compared against national market data, allowing sites to make more informed purchasing decisions.
Local suppliers were maintained where product quality was important, while packaged items were sourced at the most competitive price.
A competitive tender was undertaken for the group’s laundry contract as it approached renewal, resulting in the appointment of a new supplier. Operational controls were strengthened by removing minimum wash requirements and fixing price review mechanisms for years two and three of the contract.
Merchant services were also renegotiated, introducing new terminals and software that improved transaction visibility and system integration while reducing processing costs.
The Ongoing Impact
With expanded procurement support from One Cost, Lake District Country Hotels has greater visibility and control over purchasing activity. Contract management is now centralised, with automated renewal alerts ensuring supplier agreements are reviewed proactively. Regular purchasing reports also provide senior management with clearer oversight of spend.
Maintaining trusted supplier relationships remains a priority and will continue to be key in future negotiations, allowing the group to protect product quality while continuing to improve commercial terms.
"Since we began our relationship with One Cost, they have become firm procurement partners, helping to unlock considerable savings, both across the supply chain and in terms of time and productivity.
Their tailored solution allows automatic benchmarking of pricing in all areas, not just fast-changing items such as food and drink, but also across a wide range of areas such as linen, merchant services and more. Without One Cost, our bottom line would have been severely hampered by recent price rises, and their support has allowed us to remain competitive in a price-sensitive market.
One Cost’s personable approach has made their team feel like an extension of our own, and I wouldn’t hesitate to recommend their services."
How Our Team Can Support Yours
We possess the systems, data and expertise needed to embed structured procurement processes within your business. Whether the focus is improving gross profit, enhancing operational efficiency, or ensuring consistency across spend, we work with you to consistently deliver on your KPIs.
