Hotel Online  Special Report



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Tiburon Hospitality Management Slices
its Resort Food Cost by 52%

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Carefree, AZ . .March 15, 2005 . . Over the last year, Tiburon Hospitality Management has saved an incredible 52% in food cost, equaling more than $885,000 in total food cost savings among its three resort properties through a strategic partnership with ARO Enterprise.
 
“The partnership we’ve established with ARO Enterprise has allowed us to maximize our profit margin at all three resorts in a relatively short period of time with absolutely no sacrifice in food quality,” said Thomas Haas, corporate director of food and beverage for Tiburon Hospitality Management.  “In many cases, quality went up and price came down.”

Haas worked directly with Lynn Ferraro, president of ARO Enterprise, in tailoring a specific cost reduction program for each Tiburon resort.  Maintaining quality of product was Tiburon Hospitality Management’s utmost priority, which is why they chose to partner with ARO.  All of ARO’s programs are set up to meet the needs of Four and Five Star level properties and operations.  Their client base has included The Four Seasons, The Mansion on Turtle Creek, Fairmont and the Adolphus Hotel in Dallas.
 



Thomas Haas
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Greg Champion.
“I’ve enjoyed a lengthy and rewarding relationship with Lynn and consider him a key member of our team.  I’ve witnessed the direct impact his programs can have on a company’s bottom line,” said Greg Champion, president and COO of Tiburon Hospitality Management and former managing director of the Adolphus. “Our strategic partnership with ARO Enterprise is one of the many benefits Tiburon Hospitality can bring to a property management partnership.”

One of Tiburon’s initial key cost control strategies in repositioning its properties, was to implement and closely regulate food and beverage supplier contracts, monitor specification and waste elimination and execute procedures across the board. 

“Only one third of a resort’s savings can be attributed to supplier contracts,” said Ferraro.  “The additional two thirds of the program lies in specification and waste elimination, followed by implementation of procedures.  These three key steps are crucial to the overall success of the program.”

In addition, Tiburon’s program was also designed to include a 5% annual increase in cost of goods.  In an effort to offset the inflation, the program is still able to save money through specific procedures and price protection from selected suppliers.

As with all of ARO’s clients, Tiburon Hospitality Management’s program is set up under a “sole supplier” concept, where one supplier is selected for each category of food or supplies.  According to Ferraro, general categories are usually comprised of grocery (non food, dairy, chemicals and sometimes produce), seafood, meats and produce.  In conjunction with Haas, Ferraro visited each Tiburon property and analyzed the entire operation, menus, current suppliers, product needs and applications and then selects a supplier that best suits the property’s needs.

For further information regarding ARO Enterprise, call 800-840-6885 or visit their website at www.aroenterprise.com.

Headquartered in Carefree, AZ, Tiburon Hospitality Management manages three award-winning destination resort properties including the 404-room Carefree Resort & Villas in Carefree, AZ; the 220-room Daufuskie Island Resort & Breathe Spa off Hilton Head Island, SC; and the 254-room Ocean Place Resort & Spa in Long Branch, NJ.  For further information, visit the website at www.tiburonhospitality.com. Or, send us a request for brochure and information. 

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Contact:
Carol Baetzel
480-595-3780
Director - Public Relations
cbaetzel@tiburonhospitality.com
Also See: $26 Million in Publicity Value Accelerates Tiburon Hospitality Management Exposure / February 2005
Interactive Sites and Tiburon Hospitality Management See Web Bookings Soar by 136% / February 2005
Tiburon Hospitality Management Website Receives Prestigious Adrian Award / February 2005
Tiburon Hospitality Management Aggressively Pursues Travel Industry Market / January 2005
Tiburon Hospitality Management Poised for Growth in 2005 / January 2005
Thomas Haas Appointed Corporate Director of Food and Beverage for Tiburon Hospitality Management / June 2004
Melissa Morales and Kimberly Freer Appointed to Corporate Director Positions for Tiburon Hospitality Management / September 2004
Hans Mulders Appointed General Manager of the 254-room Ocean Place Resort & Spa / January 2004


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