With the increased number of chains in the food and beverage industry these days it is hard for an independent restaurant to survive.
The truth is the lack of purchasing power makes it almost impossible to be competitive when it comes to pricing. In the past many independent operators were of the mindset that they could win the battle with service, but that theory doesn’t seem to hold much weight anymore. This isn’t because the experience at an independent outlet can’t be great, or that they can’t provide the same level of service the chains do, or even that their training isn’t at the same level.
More to the point is that chains or restaurant groups have the opportunity to draw better talent because they are able to offer more growth opportunity. Chains also offer a proven track record and therefore provide a sense of security for employees joining their team.
So, what to do? How does the little guy at least stay competitive? Well, the one big thing that comes with being independent is creativity and the ability to make changes whenever you see fit.
Being part of a chain most times means you are being told what to serve, how to serve it and who to buy from. The “who” to buy from is key as it doesn’t only dictate the quality of the item you get, but the price you pay.
As an independent there is a way to have the best of both worlds by purchasing the products you choose, and getting some of the best pricing available for the products you need.
Purchasing groups are not a new thing but definitely something that has grown considerably over the last decade. Also, with the number of them out there these days, specifically servicing the hospitality industry, they could be the game changer that helps level the playing field for independents.
They offer preferred pricing on everything from food products and beverages, to supplies and equipment. There can be both price reductions and incentives, and depending on the group, there can also be restrictions, minimum orders and fees.
So, if you are a lone operator take some time and look at what these big purchasers have to offer, it might just be enough to put you ahead of the pack.
