Sourcing Suppliers Tip

If you don’t ask for a better deal, you won’t get one.

Food and beverage costs represent approximately 30% of a hospitality business’s costs. For a cafe turning over $10,000 per week, this is the equivalent of $150,000 per year.

If you can save 2% on your food costs that’s $3000 per year.

It might be convenient having the same supplier delivering dairy, dry goods, meat, and frozen, it may be costing you thousands.

Review your pricing regularly to make sure you’re getting the best deal, and ask whether food service sales representatives can match competitors’ quotes.

Savings with bulk purchasing groups
Bulk purchasing groups are member organisations that charge an annual subscription and then use the buying power of volume (200+ businesses) to get the best possible price for their members. These products are then distributed by normal supply chains.

On average they can save businesses around 10%.

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