Elements Of Restaurant Negotiations
Negotiating With Restaurant Suppliers
A good relationship with your food supplier is a pillar of running a smooth kitchen operation. It can help get you on top of the delivery list, acquire the freshest ingredients and benefit from the best prices. However, a good relationship with your supplier does not negate the option of restaurant negotiations, it can actually be key to a good negotiation.
A good negotiation with your food vendor starts with:
Doing your research
Make sure you get to know the market to find the best deals and get a general idea on the average price, the more you know about a product the better you can negotiate. There are many apps that help you scour the market to find the best deals and gain enough knowledge to start your negotiations on the right foot.
Work on your Supplier relationship management
Improving on your relationship with your supplier includes several touch points, such as placing your restaurant bulk order consistently and efficiently or even by paying a bigger advance on your orders; the best way to achieve it is with apps that help run your inventory for you and organize your operations.
Make sure the Supplier cost cut works within your budget
Usually suppliers charge in two ways: Cost+ Fixed price or Cost + Percentage Cost+ price usually entails paying a fixed flat fee on your suppliers’ cost Cost + percentage means the price varies in proportion to the initial food cost Researching the commodity market price and asking food vendors for a market basket report are also good practices to determine the cost of your supply needs. Astute restaurant managers establish good relationships with restaurant suppliers in order to negotiate the best prices and achieve a stable restaurant business sustainability.