Case Study

How a Riyadh Restaurant Chain Reduced Food Cost by 18% with Odoo POS & Inventory

ECOSIRE implemented Odoo POS across all 8 branches with real-time cloud sync to a central Odoo instance. Each menu item was configured with a detailed recipe (bill of materials) linking it to specific ingredient quantities. When a dish is sold through POS, the system automatically deducts the exact ingredient quantities from that branch inventory. Purchase orders were centralized through Odoo Purchase with approved supplier price lists, and branch managers now requisition through the system rather than ordering independently. Kitchen Display screens replaced paper ticket printers, and a headquarters dashboard provides real-time sales, inventory, and food-cost data across all locations.

Key Facts

Location
Saudi Arabia
Industry
Hospitality
Company Size
120-150 employees
Implementation
10 weeks
Apps Used
Odoo ERPPoint of SaleInventoryPurchaseAccountingEmployeesKitchen Display
Software Replaced
Standalone POS terminals + supplier WhatsApp ordering

The Challenges

No Visibility into Food Cost Per Dish

Each branch manager ordered ingredients independently, often from different suppliers at varying prices. Corporate had no way to calculate the actual food cost of any menu item because ingredient prices, portion sizes, and waste levels varied wildly across locations. The finance team estimated food cost at 38% of revenue — well above the 30% industry target.

Inventory Theft and Shrinkage

Monthly physical stock counts at each location consistently showed 8-12% variance between actual stock and what should have been remaining based on sales. Without real-time consumption tracking tied to POS sales, it was impossible to distinguish between over-portioning, waste, and theft.

Slow Multi-Branch Reporting

Daily sales reports from each branch were compiled manually by branch managers and WhatsApped to headquarters. The data arrived in different formats, at different times, and often with errors. The CEO typically saw consolidated weekly numbers by Wednesday of the following week.

The Results

38% to 31%
Food Cost Reduction
Standardized recipes, centralized purchasing, and consumption tracking reduced food cost percentage by 7 points.
SAR 420,000
Annual Savings
Lower food costs and reduced shrinkage saved SAR 420,000 annually across all 8 branches.
Under 3%
Inventory Shrinkage
Real-time consumption tracking brought inventory variance from 8-12% down to under 3%, with automatic alerts for anomalies.
Real-time
Reporting Speed
The CEO now sees consolidated sales, cost, and profitability data across all branches on a live dashboard, replacing the 5-day reporting lag.
The moment I could see which branch was over-portioning shawarma by 15% compared to the recipe standard, I understood the power of having POS and inventory connected. That single insight saved us more than the entire project cost.
Khalid Al-Otaibi, CEO

What's Next

The chain is opening two new branches and will deploy them on the same Odoo instance from day one. They are also exploring ECOSIRE custom development for a loyalty program module integrated with the POS system.

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