In hospitality industry, which is a very dynamic industry, there is no more important aspect than the capacity of a restaurant to offer fresh and high quality food on a consistent basis. Whether it is a luxury restaurant or a local coffee shop, all restaurants depend on the continuous and reliable food chain. So what is the big deal about this? So what does it take to make sure restaurants are partnering with the correct vendors?
In this article, authors discuss the importance of effective food supply chains on restaurant success and how such as restaurant GPO, foodservice rebates, and buying groups could be utilized to streamline the process of procurement and make purchasing more effective.
The Foundation of Consistency and Quality
Ask any restaurant manager or any chef: It is all about consistency. The customers want the same level of high quality each time they are there, whether it is in the ripeness of avocados or the marbling on a steak. The supply chain of the restaurant food starts with that consistency.
The bad suppliers may mean that deliveries are late, the produce is of no quality and too frequent changes in the menu. This not only impacts on customer satisfaction, but may ruin your reputation and destroy repeat business. Trust refers to your having a reputable supplier who understands the needs of your kitchen and avails the ingredients to it moments, on time.
Managing Costs in a Competitive Market
Managing a restaurant is a trade off between price and quality. Having variable cost of ingredients, pressure on the economy, and low profit margins, a good reliable supplier will allow you to deal with purchasing more consistently. However, in addition to maintaining the stability of prices, the general costs of procurement can be lowered, and one of the best such methods is participating in a restaurant GPO (Group Purchasing Organization).
A restaurant GPO concentrates purchasing power of a number of establishments to negotiate better prices, terms and services with vendors. This enables small restaurants to enjoy same volume discounts and foodservice for the large chains.
The Importance of Supplier Relationships
A good supplier does not even supply crates of food. They turn out to be stakeholder in your business success. The finest vendors can recognize the specialized needs of your restaurant; whether it is seasonal menus, dietary choices or functions, and they collaborate with you to deal with them. This bonding is a prerequisite to long run development.
In addition, a reliable supplier is transparent. When something gets delayed or when something is insufficient, they inform you beforehand. When they get a better offer on an everyday item or a new product such that fits in your kitchen, they share this information out. All these facts can become incredibly helpful when you are counting the inventory, calculating the budget, or revising your menu.
Risk Management & Food Safety
Safety in any foodservice operation is of optimum importance. Sound restaurant food supply chain implies food traceability and ensuring food safety standards. It controls the chances of contaminating, spoiling, or nonconformance to the regulations.
By using the appropriate restaurant buying group GPO organization, you may obtain an approved list of suppliers with high standards of safety held over them. This minimizes your liability and makes it possible that you are doing business with certified vendors.
Boosting Profit Margins with Foodservice Rebates
Among the least commonly used ones which can be used as means of increasing profitability are foodservice rebates and foodservice rewards. These are simply cashback rewards by the suppliers or GPOs depending on the quantity or the form of products bought.
As an example, you may get a discount on buying dairy or frozen product of a particular brand in the course of time. These savings though small when comparing per-unit purchase become huge after several months of continued purchase.
Restaurants are able to invest this income back in the staff training, new equipment or marketing- and it sets a circle of positive growth. With trusted suppliers, and more so, working in a GPO model, monitoring of such rebates is done with ease to ensure nothing goes to waste.
Adapting to Industry Trends
The restaurant world is ever changing, sustainability, healthy menus, and locally grown ingredients are merely some of the leading trends at present. Restaurants have to be able to adapt to these changes fast and a good food supply chain can help the company to achieve this goal.
To take an example, when your menu should include more vegetable based dishes or organic elements, this is achievable through its fluid supplier chain. Restaurant GPOs are effective in enabling the restaurants to reach out to new, trend-forward vendors and continue to practice cost-effective procurement strategies.
Streamlining Operations Through Technology
The world is no longer relying on trucks and warehouse to sustain reliable supply chains; today this is augmented with intelligent technology. Today many restaurant buying organizations provide online facilities through which restaurants perform inventory management, order tracking, rebate earning tracking and future estimations.
This availability of a view of your restaurant food inventory can eliminate excessive ordering or stock-outs, and increase back-of-house efficiency. The new knowledge enables operators and chefs to make more informed decisions, reduce wastage, and serve higher-quality food in the end.
Choosing the Right Supply Chain Partner
What is then the best way to get freshness and reliability among partners?
- Quality of Certifications & Track Record: Review the supplier to meet high standards of food safety, and who has good track record of delivering the right quantity in the stipulated time.
- Test Flexibility: Do they cater to your eleventh-hour requirements or change in seasons?
- Review Communication: Do they communicate to you in case of any delays or product replacement in advance?
- Look at Group Benefits: Do they represent a restaurant GPO or purchasing group? Will they be able to provide foodservice rebates and more favourable conditions?
- Word of Mouth Marketing: Visit other restaurant owners in your locality. Having a good reputation says everything.
How FRPG Helps Restaurants Build Stronger Supply Chains?
Restaurants that desire long-term success have no option when it comes to having an effective supply chain at FRPG (Foodservice Rewards Purchasing Group). As a trusted restaurant GPO, we assist both single store and multiple store restaurants to get an extensive industry of approved restaurant food supply partners.
Our buying power unites you with the suppliers with freshness, quality and consistent items. You can also get exclusive foodservice rebates, detailed reporting tools, and access to industry perspective so that you can remain on the cutting edge.
Be it cost cutting, identification of new vendors or simplification of procurement, FRPG is a trusted supply chain partner.