Consolidating and Leveraging Restaurant Purchasing

SITUATION
A small growing restaurant group in Atlanta, GA (6 locations at the time) had no formalized programs or supplier relationships.

 PROBLEM
The restaurants were using several different suppliers in each category, based on individual restaurant preferences.  The company was not effectively utilizing combined purchasing power to leverage or lower costs without impacting quality or service.  No formalized programs were in place.

SOLUTION
We reviewed purchases by category to determine best fit for distribution programs.  Then thorough, formal bids (RFP’s) were performed with all of the current suppliers. Desired outcome would be establishing one dedicated cost plus supplier program in each of the selected categories, and consolidating purchasing under Master Distribution Agreements.

 BENEFITS
Streamlined all purchasing programs and functions, which enabled restaurant staff to focus on operations.  Also consolidated purchasing to leverage and maximize potential while maintaining established quality specifications and necessary service parameters.  We established systems to audit supplier partnerships resulting in long term mutually beneficial relationships based on strong financial principles.  The project work resulted in lowering costs by $160,000 per year for the 6 locations.  The company has since opened additional locations and we continue to help on an ongoing basis.

For more information, contact Lee Plotkin at 972- 744-9882 or [email protected].