Restaurant Chains and Their Purchasing Practices: How it could save you money
I came across this article that challenged restaurant chains to look at how they spend and how they could better manage their purchasing. Consolidated Concepts, a full-service purchasing partner for multi unit restaurant companies ran 2 surveys that dug deep into the purchasing practices of 20 chains with 400 locations.
There were four points that really stood out to me as key:
- Produce Contracts: only 30 percent of respondents have produce contracts that protect them from price fluctuations. That leaves a whopping 70% with none or little protection from the volatile swings of the produce market.
- Specs Book: in this day in age, society is paying more and more attention to where their food comes from to better ascertain the quality. Restaurants then end up paying more for quality produce. How can you verify if the price you pay matches the produce that is delivered? 75% of those participating operators said they did not keep a produce spec book in their restaurants.
- Food Safety: The survey found that 80 percent of respondents relied on their produce provider to find out about produce recalls. Consolidated Concepts strongly urges restaurants to have a food safety and traceability program.
- Master Distribution Agreement (MDA): Bruce Reinstein, Chief Operating Officer of Consolidated Concepts, calls the MDA the most important contract that can be negotiated in the supply chain,”… and probably it’s where operators lose the most money. They should rely on a third party to do it.” One executive surveyed commented on the complexities of negotiating a contract. He wrote “There is a lot more to it than I realized.”
To learn more visit <a href=” http://nrn.com/sponsored-content/what-chains-dont-know-about-their-purchasing-practices “>Nation’s Restaurant News </a>.
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