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Case Study – Snap Kitchen

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CLIENT

Snap Kitchen

INDUSTRY

Hospitality

Customer Story


Snap Kitchen is a Texas-based meal service with 49 locations. They offer ready-made meals, sides, beverages, and desserts for in-person pickup and direct-to-consumer delivery in 15 states. Customers can even find Snap Kitchen in select Whole Foods locations.

With multiple revenue streams, Snap Kitchen reached more than $45+ million in annual sales—with 95% of it processed through credit card and debit card transactions.

Problem


Snap Kitchen was paying over $120,000 per month in merchant fees.

Due to the company’s internal infrastructure and multiple revenue channels, they relied on integrations with CardConnect and Stripe to facilitate brick-and-mortar and online transactions. While the fees were high, Snap Kitchen did not want to change their equipment or gateways or find new vendors to process customer transactions.

Snap Kitchen reached out to Merchant Cost Consulting (MCC) for help.

Solution


  • MCC conducted an internal audit of merchant statements across all 49 locations
  • Overages, excess fees, billing errors, and inconsistencies were identified
  • MCC reviewed Snap Kitchen’s original terms of agreement with CardConnect
  • MCC negotiated Snap Kitchen’s processing rates directly with the vendors
  • MCC provided ongoing monthly statement monitoring

Results


  • $325,000 in annual savings for Snap Kitchen
  • $150,000 refunded to Snap Kitchen by CardConnect
  • $25,000 in additional savings on equipment charges
  • Snap Kitchen’s effective processing rate was reduced from 3.00% to 2.25%
  • Snap Kitchen was able to keep its POS system, merchant service vendors, and payment processing gateway in place—without having to change anything

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