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Enhancing food safety and aged care accreditation while simultaneously reducing expenses.
Aged Care Provider - Food & Catering Cost Optimisation
A major not-for-profit residential aged care provider engaged ERA Group to reduce its annual food and catering spend of $2.5 million across multiple facilities serving more than 330 residents. Alongside cost reduction, the organisation wanted to strengthen contract terms, improve food safety standards, and enhance supplier support for aged care accreditation requirements.
ERA Group conducted a detailed review of service specifications, supplier contracts, purchasing data, and stakeholder feedback. Following a competitive Request for Proposal (RFP) process involving four suppliers, ERA identified a new supplier that could deliver greater value and service improvements.
ERA then managed contract negotiations and supported the transition and implementation process to ensure a seamless changeover.
"Achieving a better price was certainly a goal, however AMAROO VILLAGE was not prepared to compromise on the quality of the food. ERA Group did a great job by meeting with us and monitoring our invoices against agreed prices to ensure that the supply contracts were honoured." [David Fenwick, Chief Executive Officer]
Results:
- Achieved 15% savings on annual food and catering costs
- Reduced rates and eliminated unnecessary additional charges
- Secured improved payment terms and vacancy discounts
- Enhanced food safety standards and accreditation support
- Ongoing performance monitoring for 24 months to ensure savings were realised
This project delivered significant cost savings while improving supplier performance and supporting high-quality care for residents.
Breakdown of results
15%
Saved on Food & Catering
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