Umbel Group Serves Up Next Level Forecasting with Sage Intacct
Three years on from its initial deployment, Group FD, Chris Gallagher-York, explains how the platform has expedited planning and performance at the unique, Simon Rogan-led restaurant group. He highlights its integral role in delivering competitive advantage in an industry which continues to face headwinds, and gives us a glimpse into what the future holds.
About Simon Rogan
With core values centred around food and nature, innovation and sustainability, the group operates across the UK, Malta, Hong Kong, and Thailand. Setting the benchmark in farm-to-table dining and sustainability, its restaurants collectively hold nine Michelin stars and two Michelin Green Stars.
L’Enclume is situated in a former 13th-century blacksmith workshop and focuses on homegrown, seasonal produce from its farm, located a mile away from the restaurant, which serves to treat all guests to an ever-evolving dining experience.
It also operates one-star neighbourhood restaurant Rogan & Co, Simon Rogan’s development kitchen, chef’s table Aulis, and 16 bespoke bedrooms and suites for those wishing to stay the night, along with its shop.
Other restaurants include Henrock in the Lakes; Aulis London, an eight seat chef’s table in the heart of Soho; Aulis Hong Kong; Michelin star Roganic Hong Kong, which earned a Michelin star just 10 months after opening and, in 2021, became the first restaurant in Hong Kong and Macau to receive a Michelin Green Star for sustainability; The Baker & The Bottleman Hong Kong; and most recently, ION Harbour; Aulis Phuket; and Skof in Manchester.
The infinite amount of dimensions within Sage Intacct provides the ability to code and tag data from across every aspect of our operations, from ingredients, staffing, marketing and covers. We can then analyse trends to understand the interdependencies and impact of each dynamic and variable. This ability to deep dive into the data and refine plans for each entity, whilst also facilitating collaboration and consolidation to provide us with group-level reports, really gives us a handle on the business and confidence to know we’re making the best decisions at any given time.
Post-Pandemic Challenges
Following a brief period of stabilisation post-pandemic, the hospitality industry has continued to experience bumpy times. Business rates, minimum wage, and VAT increases have all converged to erode margins and put more pressure on accurate forecasting to maximise both profit and the customer experience.
Following its deployment of Sage Intacct in 2022, where the focus was primarily on establishing a baseline from which to build, the last year has seen Simon Rogan’s team become familiar with the platform. Leveraging the breadth and depth of its capabilities to forecast and elevate the way the business is run has dominated, as Umbel Group’s Financial Director Chris Gallagher-York explains.
A Unique Business Model
“While our values are consistent across every restaurant, each one is unique in terms of its structure, geography, menu and customer experience. This means that we need to manage them differently, and to do this effectively, we need class-leading and intelligent finance and reporting capabilities.
“The infinite amount of dimensions within Sage Intacct provides the ability to code and tag data from across every aspect of our operations, from ingredients, staffing, marketing and covers. We can then analyse trends to understand the interdependencies and impact of each dynamic and variable.
“This ability to deep dive into the data and refine plans for each entity, whilst also facilitating collaboration and consolidation to provide us with group-level reports, really gives us a handle on the business and confidence to know we’re making the best decisions at any given time.”
The level of speed and integration with our other systems represents a marked unique selling point (USP) for us as it allows us truly dynamic forecasting.
Ingredients for Success
Ingredient costs are a great example of this and have been a major source of scrutiny for the group, particularly since the Ukraine war. While some product price hikes were well-publicised, such as sunflower oil, major upticks in the cost of stock cupboard staples, like flour and butter, have also presented challenges.
“Traditionally, our chefs have had carte blanche to use these types of ingredients fairly freely, but the price increases, which we now have detailed, live data on via Sage Intacct, mean we can plan precisely how much is likely to be needed for menus and provide mandates which reflect this in the kitchen.
“Adjusting to this environment in the wake of the pandemic resulted in a fairly tough 2023, but the intelligence and forecasting Sage Intacct has brought to the table has helped us to navigate this, implement informed planning and pursue measured growth.”
As a result, 2024 was significantly more profitable for the group, and the team has been able to understand its position with greater accuracy, pinpointing where opportunities exist and staying ahead of the industry curve. Specifically, having the data to show detailed performance across every restaurant and flag exceptions has really helped redesign budgeting and forecasting.
Class Leading Accounting
“The level of speed and integration with our other systems represents a marked unique selling point (USP) for us as it allows us truly dynamic forecasting,” Chris explains.
“One bad decision or oversight can wreck a week’s figures, so daily check-ins, supported by weekly meetings, are imperative in maintaining focus and keeping everything on track. In a restaurant, for example, a small surplus of fresh ingredients, or over-staffing by one, can quickly offset profit levels, and if not adjusted, this can become a trend which poses real risk to performance.”
[Percipient] really do know hospitality inside out and are always one step ahead of any upcoming features or developments. As a group, we’re incredibly excited to work with them and Sage Intacct in realising our future plans.
Visibility & Control
The multi-entity management functionality within Sage Intacct is incredibly flexible and helpful, as the group’s business model is not uniform. Its newest restaurant, Skof in Manchester, for example, has a different legal structure from others in the group. Reporting to investors is different, and there is a different accounting calendar, but the way Sage Intacct is set up makes it seamless. In parallel, it supports the group’s e-commerce business, which is highly seasonal, with peaks around Valentine’s, Christmas, and New Year’s, as well as events such as weddings, Ascot, and most recently, a pop-up in Sydney, to promote and extend its reach.
Modern Capabilities for Scale & Performance
“With 15 different sites and a £10 million turnover, and ambitions to expand further, the granularity Sage Intacct gives us ensures we’re on top of every aspect of every operation and entity at every moment. Entry-level systems such as Xero or QuickBooks simply don’t offer this capability and control over the numbers.
“Ultimately, we can pull out and review three and a half years of data in just five minutes, something which previously would have been impossible. It’s so easy to get information in and out of it; it has become an integral part of our business’s DNA and driving force. With updates released quarterly, we continually see enhancements and new features, which we greatly value.”
The Percipient Advantage
“From day one, Percipient has been a true partner in helping us to get the absolute most out of the platform. Because the system is so easy to use, it’s rare that we need to call on them for support. However, their guidance, reassurance, and always-available ethos are incredibly valuable, particularly given the mission-critical nature of the system in support of our live business.
“They really do know hospitality inside out and are always one step ahead of any upcoming features or developments. As a group, we’re incredibly excited to work with them and Sage Intacct in realising our future plans.”
Sage Intacct for Restaurants
At Percipient, we help ambitious restaurants to upgrade outdated systems with modern, cloud-based solutions like Sage Intacct, designed to scale, simplify, and strengthen your finance function. Call us on 01606 871332 or book a free consultation with one of our Sage Intacct experts and let us show you how.