In the hospitality industry, whether you are running a hotel with food and beverage services or a managing full service restaurant or managing a catering company, pricing food is always the key to profits and it’s more important than ever before.
There are several ways you can price your menu. One way is to set your prices based on your competitors’ prices rather than on your own costs. Another way is to take the costs of each menu item and mark up the total by a set percentage. You also have to take into account cost changes due to seasonal and market supply and demand.
That’s a lot of data to compile and track! It is time-consuming to find, qualify and monitor suppliers. You have to constantly re-assess what to buy and where to buy it, and to compare multiple vendors.
Keeping on top of changing costs requires compiling vendor invoices for the ingredients used in each menu item or dish. And, you must regularly re-negotiate with suppliers to obtain the best products at the lowest prices.
The Power of Collective Buying
Given this tall order, what is the secret sauce? It’s working with a partner such as Source1 Purchasing. We will help you track, evaluate and reduce your costs, so you can focus on creating a competitive-yet-profitable menu that keeps your guests coming back.
Given this tall order, We consolidate your vendor invoices and report what you spend on all your products, from all your suppliers, across all your locations. We also present alternative products of the same quality, suggest lower-cost suppliers, and negotiate and manage your supplier contracts and rebates.
The Source1 Purchasing Solution
- save money through pre-negotiated pricing applied to thousands of products.
- pay less for individual products since we suggest alternative brands of equal quality.
- access secondary suppliers so you can switch easily if your primary supplier goes bankrupt or terminates your contract.
- enjoy capturing earned rebates, without having to track them yourself.
Best of all, you’ll avoid up-front costs, ongoing fees, compliance minimums and long-term contracts.