Comments on: Do’s and don’ts for startup restaurants – vol. 3 http://blog.bodellconsulting.com/2008/03/23/dos-and-donts-for-startup-restaurants-vol-3/ This is a blog intended to help restaurant and food service owners and managers build better businesses. Sun, 05 Feb 2012 07:04:18 +0000 hourly 1 http://wordpress.com/ By: bodellconsulting http://blog.bodellconsulting.com/2008/03/23/dos-and-donts-for-startup-restaurants-vol-3/#comment-141 Sun, 20 Apr 2008 20:39:09 +0000 http://bodellconsulting.wordpress.com/2008/03/23/dos-and-donts-for-startup-restaurants-vol-3/#comment-141 I appreciate your input on my advice Mike, but from years of experience negotiating purchasing contracts for not only operations that I’ve run, but also my client’s operations, I can assure you that the lowest purchasing costs, whether on quality products or cheap products, is achieved through competitive bidding.

Just as in the “real world”, without competition, prices don’t come down. There is no incentive for a company to keep pricing competitive if they are not being made to compete.

I’ve heard your same arguement from salesmen before. Not to jump to conclusions, but I would assume that is your profession. Naturally it’s in your best interest that your accounts don’t make you bid for their business every year in order to keep it. Without a process to keep salespersons honest, a business cannot expect to get their best price. Without competition, why should they?

There are certainly considerations as to what quality of product the pricing pertains to, but what quality of product the restaurant needs is not up to the salesperson. It is up to the restaurant, and it is the restaurant owner or the chef’s responsibility to monitor the quality of the product coming in, just as they do the product that goes out to a table.

I don’t suggest to my clients that quality isn’t a consideration. Neither do I assume that they are too ignorant to factor quality into the bidding process, or to police the quality of the products they are getting bids for. That’s part of their job. Once again, if they are leaving that just to the salesperson, they are setting themselves up for failure.

A good relationship between vendors and restaurants does include both making money. After all, that’s what we’re all in business for. Not making a vendor compete for your business though usually results in paying too much. Sure, there are some honest salesmen, and women, out there that will give you their best price just to help keep you in business, but they are the exception.

If you are one of these type of salespersons, I can see how you think it’s better and easier for a customer to just trust you. Unfortunately, in the real world, restaurants have to have systems in place to eliminate the need to trust their sales people. Most salespersons, and most purveyors in general, are simply not looking out for the best interest of their clients.

]]> By: Mike http://blog.bodellconsulting.com/2008/03/23/dos-and-donts-for-startup-restaurants-vol-3/#comment-140 Sun, 20 Apr 2008 19:59:00 +0000 http://bodellconsulting.wordpress.com/2008/03/23/dos-and-donts-for-startup-restaurants-vol-3/#comment-140 You are giving new restaurant owners bad advice suggesting that they start a bid process with their vendors. The vendors will “bid” on their lesser quality items resulting in poor quality and poor yields. Schools, prisons and other institutions put out bids. Quality and yield is not important here. Better advice, would to partner with your vendors holding them accountable for a fair cost of goods (allow them to make a profit) while maintaning a good quality and yield level. Most good vendors also offer value added services that a good restaurant operator should take advantage of. Restaurant operators should not fall into the “bid” trap. Their patrons want a quality product at a fair price. Not school fare.

]]> By: karl cooke http://blog.bodellconsulting.com/2008/03/23/dos-and-donts-for-startup-restaurants-vol-3/#comment-135 Sat, 12 Apr 2008 14:45:13 +0000 http://bodellconsulting.wordpress.com/2008/03/23/dos-and-donts-for-startup-restaurants-vol-3/#comment-135 brillant info excactly what a was looking for thanks

]]> By: Chris Tackett http://blog.bodellconsulting.com/2008/03/23/dos-and-donts-for-startup-restaurants-vol-3/#comment-96 Sun, 23 Mar 2008 18:37:15 +0000 http://bodellconsulting.wordpress.com/2008/03/23/dos-and-donts-for-startup-restaurants-vol-3/#comment-96 Been reading for a while now. Just wanted to say good job.

Chris Tackett

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