Restaurant Purchasing is More Than Buying a Can of Corn, Says Howard Cannon, CEO Restaurant Consultants of America

Birmingham, AL, April 07, 2012 --(PR.com)-- In order to sell things, you usually have to buy things first. To run a restaurant, you need lots of stuff, from tomatoes to sugar to light bulbs. You probably aren’t going to be growing your own tomatoes, and chances are good that your neighbor won’t have a spare 2,000 cups of sugar for you to borrow for your expanded dessert menu; and, driving to the hardware store every time you run out of light bulbs is not the best way to stock your restaurant. You need to learn the fine art of purchasing, which is the procuring of goods and services.

Restaurant Consultant, Restaurant Expert Witness, and CEO, Howard Cannon says, "Restaurant purchasing is more than buying a can of corn. Purchasing involves much more than simply buying stuff. Some ways of buying make more sense than other ways. Big restaurant chains have entire purchasing departments and spend a lot of time wheeling and dealing for the best prices. The sheer size of the chains usually ensures that they get the best prices. You're probably not going to be so lucky, but you can be just as smart."

How do you decide which vendors to use? You want reputable vendors who can provide the products and services you need at the level of quality and service you require. In other words, don’t just pick vendors based on price. Many restaurant owners and operators lose sight of quality and service issues when determining a list of vendors and allow price to be the determining factor. The best way is to interview vendors as you would a prospective employee. Do reference checks. Dig deeper and get to know the company, the staff, and the way they operate. A vendor is more than just someone selling you something. Ideally, a vendor is a business partner. A vendor should be willing to go the extra mile to help you succeed. After all, when your business succeeds, the vendor can sell more products to you. A good vendor understands that connection. Mr. Cannon acknowledges, "Some vendors will try to get your business by giving you free tickets to games and other events. Don’t give in to temptation. It’s better to get quality products and services at lower prices and then buy your own tickets to whatever you want."

The truth is that price is secondary to quality because no one will pay to eat in a restaurant that serves bad quality. Price should be one of the last factors you discuss with the vendor. Cannon advises, "Instead of worrying over price, find relationships that work. Also, try to use as few vendors as possible. The convenience of one-stop shopping is well worth a little extra money. Sure, you can buy meat cheaper by going to a butcher, and you can buy milk cheaper by going directly to the dairy. You also can buy produce cheaper by going directly to the orchard. But there are only so many hours in the day, and spending that time placing, receiving, and accounting for 36 different orders isn’t worth the 17¢ you may save on a gallon of milk." Keeping the number of vendors you use to a minimum makes it easier to control all aspects of the purchasing process and to establish relationships. Traditionally restaurants go with one main distribution company that purchases literally hundreds of thousands of products from a seemingly inexhaustible list of suppliers and manufacturers.

"Last, but not least," adds Cannon, "Vendors are great sources for building your business reputation, credibility, references, and creditworthiness. When a major corporation has extended you a line of credit, you can use the power of their name recognition and credibility to get credit from other vendors. As you conduct business and build new business vendor relationships, you can secure more funding options; and that's a very good thing for a restaurant business.”

Howard Cannon is a highly recognized restaurant expert witness, consultant, analyst, and speaker. He is the author of The Complete Idiot’s Guide to Starting a Restaurant© - found in 76 countries around the globe. Mr. Cannon is the CEO of Restaurant Consultants of America and Restaurant Expert Witness, and can be reached at 800-300-5764 or via the web at RestaurantConsultantsOfAmerica.com or RestaurantExpertWitness.com.