Tudor Deli Slices Costs

Strategic Cost-Cutting Spotlight: Tudor Deli Slices Costs Communication Services for Any Business Building the Optimized Home Office

How a local restaurant took a big bite out of expenses

Every day, more than 400 people trust Michael Mancuso to feed them. Mancuso and his brother-in-law, John Killoran, own the Tudor Village Deli, a landmark German delicatessen in Stony Brook, New York, which they purchased four years ago. With a broad range of offerings including more than 50 specialty sandwiches, hot foods, salads and other menu items, the deli attracts hungry locals as well as large catering clients such as the nearby university and hospital.

Today, surrounded by chain restaurants and other eateries that have cut into its dinner business, Mancuso, like most entrepreneurs, is trying to cut costs in a competitive environment and difficult economic climate. As the owner of a business that depends on maintaining quality while delivering speedy service, Mancuso relies on his telecommunications equipment to make him and his team more productive.

With dozens of inquiries and phone orders each day, Mancuso says he needs multiple, reliable lines. He had a good experience with Optimum services at home, so when the deli opened, he and Killoran opted for an Optimum Business package that includes three phone lines, high-speed Internet service and cable television. By choosing a package, they cut their telecommunication bills in half while maintaining excellent reliability and clarity.

'We need good phone quality and we like to have the television on for our customers when they come in. We usually have the news on. It's a way to start conversations and give them something to watch while they wait for their food,' he says.

Mancuso uses those same lines to mass-fax daily menus to his client list, which drums up business in a very cost-effective way. In addition, his high speed Internet connection allows him to save time and serve more customers by speeding up credit card sales. 'We don't have to wait for dial-up connections to process credit cards. Now, the transactions go through super-fast. That makes our customers happy,' he says.

In his down-time, Mancuso retreats to his office for administration and bookkeeping, including online banking. He can review statements and pay bills quickly—avoiding late fees—as well as review his web site, and even check out the Facebook page one of his employees created for the deli.

Mancuso and Killoran also use their knowledge of the food business to save. Prior to purchasing the Tudor Village Deli, Mancuso owned a pizzeria, and other family members own restaurants in the region. He and family members share information about and negotiate with suppliers to find the best deals. That kind of network is a big help in reducing costs. Although the deli has a broad menu, Mancuso also carefully monitors inventory levels to ensure that over-purchasing doesn't eat up resources and, ultimately, lead to waste.

In addition, his family members support each other. 'We have family members who stop in and help when we need it. We'll send stuff to other stores when they need it and they'll do the same for us,' he says. That kind of assistance keeps the business running briskly, reduces the chances of being out-of-stock on a key ingredient and makes customers happy without increasing overhead.

By being more conservative and continuing to focus on service and quality, Mancuso anticipates that the deli is headed for a strong 2010. 'This deli has been through tough times before and come through just fine. It's part of the community. The people who come in here are our friends,' he says.