Decreasing Food Costs for a Restaurant Group

Situation

A popular restaurant group had developed several high performing concepts with a complex product mix and limited capacity in terms of staffing to keep an eye on their purchasing.

Problem

While they reasoned that there could be opportunities for savings, they were not able to identify areas in which they were paying too high of prices on everyday products such as food, linens, and chemicals because of a lack of capacity. In turn, this reduced their profitability.

Solution

They joined our group purchasing organization at no cost, using the purchasing power of the group they were able to enjoy the low margin, fixed pricing that all of our members obtain on food & beverage, linens, and chemicals to name a few. Additionally, we monitored their purchasing once they were in the program and identified products that we could negotiate deviations on and save them even more money in the long run.

Benefits

Simply, the restaurant group continues to enjoy savings of over 10% of what they were spending previously. This equates to increasing their bottom line by $200,000 per year.

For additional information, contact Jack Frost at 916-469-9227 or jack@lbgbuyinggroup.com.