My Best Advice for Negotiating with Restaurant Vendors
Being a restaurant owner means I have to buy a lot of different things for my business. I need suppliers for everything from meat and produce to drinks and paper products. The prices for these things can vary a lot, so I have to be able to talk to my suppliers and try to get the best deals. Here are some tips I’ve learned along the way that can help you do the same.
Contents
- 1 Tips for Dealing with Restaurant Vendors
- 1.1 Get the Details Right
- 1.2 Just Keep It Real, All Around
- 1.3 Negotiating a Key Drop
- 1.4 Choosing a Less Frequent Delivery Schedule
- 1.5 Try to Limit the Number of Vendors
- 1.6 Check Prices for Various Cuts and Sizes
- 1.7 Ensure Specifications Match Your Brand Identity
- 1.8 Reducing Your Order
- 1.9 Be on the lookout for set prices
- 1.10 Get agreements in writing
Tips for Dealing with Restaurant Vendors
Get the Details Right
One important thing to remember when dealing with vendors is to be very clear about what you want. You need to know exactly what you’re looking for so that you can compare different options. Be careful, though, because some vendors might try to sell you something similar to what you want, but not exactly the same. Make sure you know the exact quality and size you need.
So here’s the thing, let me break it down for you. I was talking to Dean Small, the founder and managing partner of SYNERGY Restaurant Consultants, and he brought up this interesting point. Let’s say you’re out there buying a big ol’ bag of iceberg lettuce, right? And you’re finding different prices for bags that weigh 38 pounds or bags that weigh 44 pounds. Now, you might be tempted to go for the cheaper 38-pound bag, and hey, who wouldn’t want to save some cash? But here’s the catch, my friend. That bag might be cheaper, but you’re actually getting less lettuce. So, if you want to be smart about it, you gotta be super specific about what you’re getting. Check out the weight, the ripeness, and all the little details, so you can compare apples to apples, you know what I mean?
Just Keep It Real, All Around
When I first start talking to vendors, I make sure to explain exactly what information I’m looking for and why. I don’t hide the fact that I’m shopping around and comparing prices with other vendors. In fact, being honest about my process might even encourage some vendors to give me a better deal or offer unique ways to save money.
Negotiating a Key Drop
One way to save money that some restaurants forget about is a key drop delivery schedule. Some vendors are willing to give you a better price if you let them deliver overnight instead of during busy hours. So you would have to be willing to give them a key or code so they can deliver the food and lock up when they’re done.
Choosing a Less Frequent Delivery Schedule
When you’re buying fresh food from a vendor, like fruits and meat, you need to schedule deliveries regularly. But sometimes businesses schedule those deliveries too often and end up paying more for it.
Here’s the thing: many businesses ask for deliveries five or even six days a week. But that’s not really necessary, unless you don’t have enough storage space. Each delivery costs the delivery companies a lot of extra money. They have to make an invoice, pick up the products, load them onto the truck, and bring them to you. There are so many steps involved! So, if you can reduce the number of deliveries to just two times per week, you could save a lot of money when you negotiate with the vendors.
Try to Limit the Number of Vendors
Check Prices for Various Cuts and Sizes
It’s a good idea to look into the different cuts and options that sellers offer. This way, you can find out if there are any alternatives that are not only cheaper but also won’t compromise the quality of your food. For instance, many restaurant owners tend to go for uniform-sized cuts when buying chicken breasts. However, if your restaurant serves dishes like chicken pasta or salads where the chicken is cut into smaller pieces anyway, you could save some money by opting for random-sized cuts.
Ensure Specifications Match Your Brand Identity
When it comes to meat and produce, there are different levels of quality to think about. You can choose to spend a bit more for things like USDA Prime or Organic certifications. For certain establishments, it makes sense to invest in that level of quality. However, if you’re running a local diner, you don’t necessarily need to purchase the same types of ingredients as a fancy downtown steakhouse.
Reducing Your Order
Be on the lookout for set prices
Each vendor may have a different way of pricing their goods or services. So it’s important to understand both the initial price and the future price. If possible, make sure the price is fixed so there are no surprises later on.
Get agreements in writing
And of course, it’s important to have those agreements written down in contracts. This way, if there are any disagreements about prices, delivery, or anything else, you can refer back to the original agreement to make sure you’re getting what you paid for.
And of course, it’s important to have those agreements written down in contracts. This way, if there are any disagreements about prices, delivery, or anything else, you can refer back to the original agreement to make sure you’re getting what you paid for.