If you're a restaurant owner or manager, you know that food costs have an enormous impact on your bottom line. As such, it's critical that you stay on top of procurement, so you don't end up spending more than your budget allows. But how do you do that? The truth is, there are a lot of mistakes that can be made when managing procurement. From ordering too much food to having limited information about suppliers to not tracking stock and inventory, there are plenty of pitfalls to avoid. In this article, we'll walk you through the common procurement mistakes restaurants make and how to avoid them so that you can keep your business running smoothly and save money in the process. Read on to learn more!
Mistake 1: Unclear Inventory Management
Managing your inventory can be a complicated task. It’s difficult to predict fluctuations in demand and forecast stock requirements accurately. This lack of clarity often results in ordering too much or too little, which leads to either excess wastage or seeing you running out of critical ingredients.
To help make inventory management easier, invest in comprehensive inventory management software that will track your restaurant's orders and deliveries such as Food Market Hub. Not only will this save you money in the long run by reducing spoilage and wasted produce, but it's also incredibly easy to use. The software allows you to monitor stock levels in real-time, create numerous delivery schedules, compare quotes from multiple suppliers, and negotiate with vendors for special deals and discounts. With this powerful tool at your disposal, you’ll never have to worry about overstocking or undersupplying!
Mistake 2: Ordering From Too Many Suppliers
As a restaurant owner or manager, you might think that the more vendors you have, the better; but in truth, it's often more efficient to consolidate your vendor list. When you diversify your vendors, it can be difficult to manage quantity, cost and quality. You will also have to spend a lot of time managing each vendor’s paperwork and delivery schedule.
When you have fewer suppliers on your list, you can maintain better visibility into inventory and seasonality with relative ease. This way, you will get consistency across products while giving yourself the ability to compare prices when selecting a vendor. You also won't be locked into contracts with multiple vendors—giving your business the flexibility they occasionally need.
Therefore, before making any decisions on what products to offer and which suppliers to use, analyse the scale of operations and weigh which direction is more cost-effective for your business. Fewer suppliers could be the answer that gives you greater control over your food costs and helps create an efficient supply chain for your restaurant operations.
And if you need to find the best suppliers for your needs, Food Market Hub software can link you up with the best ones in your market, and you can even communicate with them before committing to anything!
Mistake 3: Lack of Regular Price Monitoring
Are you missing out on competitive pricing from your suppliers? If you don’t know what’s a good price for your products, you’ll end up paying more than necessary. This can add up to significant increases in your food costs over time.
The solution is to track the prices for the products you regularly buy, so that you can compare prices and get the best deals. With Food Market Hub, you can easily do this with our Track Activities and Manage Stock features. This lets you monitor prices and stock counts, and identify cost increases with purchase history logs. You can even avoid over-ordering and cut down on wastage based on sales & order trends.
So keep an eye on your pricing and be sure to take advantage of any savings that come your way!
Mistake 4: Low-Quality Products
Buying low-quality products to achieve a lower purchase price isn't always the best solution—in the long run, it could cost you more. For example, cheap food products that spoil quickly or have a short expiration date will cost you money when they have to be thrown away or replaced too often.
The solution? Source from reputable suppliers who offer quality products at a reasonable price. You could use an online platform like Food Market Hub to easily source, compare and buy from reliable vendors. With Food Market Hub, you can:
- Contact suppliers directly and ask them questions about their products before making a purchase
- Request free quotations before purchasing them in bulk
Mistake 5: Poor Communication With Suppliers
Are you looking to reduce your restaurant costs? Poor communication with suppliers is one common mistake that can be easily fixed.
But how can you keep track of all your contacts, orders and communication with suppliers? By utilising software like Food Market Hub, you can easily message your suppliers directly from the app and never miss an order.
Streamline Your Supplier Management With Food Market Hub
Food Market Hub enables you to communicate with suppliers in one platform—saving time and effort. You can quickly arrange delivery times, return orders, refunds and the like from a single dashboard. No more switching between emails and WhatsApp!
This app also allows you to:
- Compare products from different suppliers using our Request for Quotation (RFQ) feature
- Automate ordering decisions based on sales history and AI-powered forecasts - meaning no more overordering or wastage!
- Get comprehensive order and cost insights for each outlet, right down to the central kitchen - meaning better cost monitoring.
All these features make it easy for you to track activities and manage stock levels in just minutes – no more time wasted dealing with manual processes. Try it today!
Mistake 6: Poor Preparation for Delivery Delays
Do you often find yourself in a bind when you can’t get what you need on time? Poor preparation for delivery delays can cause serious headaches not only for you but also for your customers.
How to Avoid Common Procurement Mistakes in Your Restaurant Business
Here’s what you can do to prevent future hiccups:
Adjust timely delivery schedules
With Food Market Hub, you can easily adjust your delivery schedules according to the supply and demand of your products. Get real-time updates with our system and avoid unnecessary spoilage and wastage due to late deliveries.
Use forecast to plan future orders
Don’t get stuck waiting for stock to arrive on time—use AI-powered forecasts to ensure that there’s enough supply of what’s needed before it runs out. This way, you won’t be scrambling to find a replacement product when things go wrong.
Mistakes in restaurant procurement can cost you a lot of money over time. Fortunately, you can avoid costly errors by closely monitoring your stock counts and prices, communicating with suppliers, and forecasting your orders and delivery times. Effectively managing your restaurant procurement process is essential to ensuring optimal profit margins, and Food Market Hub can help you do just that. With its comprehensive features, you can save yourself time and money while also keeping on top of your stock, prices and orders. So, don't let costly mistakes drag down your business—schedule a free consultation and start taking advantage of Food Market Hub today.