Boost Your Restaurant’s Profit Margin by 14% with Procurement Software
Being one of the most crucial aspects of restaurant operations, procurement processes can be challenging. Due to the highly-competitive nature of the F&B industry, restaurateurs often struggle in keeping up with price changes and to accurately compare prices between suppliers.
This is where they consider leveraging F&B procurement softwares such as Food Market Hub in automating the tedious procurement process. Adopting this strategy has been proven to reduce purchasing costs by 12% and consequently boost a restaurant’s profit margin by 14%.
What is Procurement Software?
F&B procurement software functions primarily to aid F&B businesses organise the process of purchasing ingredient supplies. The platform includes tools that enables restaurateurs to easily place orders, track their purchases, and communicate with different suppliers in a centralised manner.
F&B procurement platform can streamline not only the ordering process but also provide an efficient way for restaurateurs to manage inventory. With integration to the restaurant’s accounting and POS systems, the platform enables restaurateurs full access to sales reports and real-live stock count.
Ways procurement platform can increase a restaurant’s profit
1. Better time management
Relying on an F&B procurement platform means 56% less time needed for manual administrative tasks. Restaurateurs can save themselves the trouble of having to manually check their stock count while also avoiding uncertainty regarding price changes.
This is as platforms such as Food Market Hub provides a complete price analysis and purchase history, enabling restaurateurs to monitor and compare prices from different suppliers. This feature also enables them to anticipate and predict price trends more accurately, resulting in reduced COGS. Ultimately, adopting an F&B procurement platform also allows restaurateurs to save time on tedious tasks.
2. Efficient order management
F&B procurement platform is able to suggest orders to restaurateurs. It keeps a detailed record of how many ingredients are purchased, used, and wasted, so the platform can then analyse the optimised amount for the next purchases. F&B procurement software such as Food Market Hub can also create order guides.
Additionally, the platform can place automated orders that are often repeated. Procurement software helps restaurateurs to keep track of their ongoing orders by providing real-time status updates. This allows managers to have an overview of different deliveries that are set to arrive within a given time.
3. Maintain an optimal inventory level
Utilising an F&B procurement platform can help restaurateurs to optimise their purchases, which significantly reduces food waste. The software allows restaurateurs to set a par level, whereby when an item’s quantity is reduced to a certain level, it will alert restaurateurs to place the next orders (which are automatically set).
Procurement software can also keep inventory levels optimal by combining data on ingredient usage and sales, which can be done with Food Market Hub. By keying in ingredients for menu items under Recipe List, the inventory is automatically deducted each time the item is sold (using integration with the restaurant’s POS system).
4. Diversify supplier options
With an F&B procurement platform, restaurateurs can gain access to a catalogue of suppliers, instead of limiting themselves to just a few. They can compare prices more accurately and can negotiate better prices.
This is especially useful if the restaurants were to implement menu changes or to prepare for late deliveries, as they can now have a plethora of supplier options. It is found that by using procurement platforms such as Food Market Hub, restaurateurs can reduce their COGS by 10% by having better deals with suppliers.
5. Track food costs
Being one of the biggest expenses in restaurant management, it is crucial for restaurateurs to constantly think of ways to reduce their food costs. Utilising a procurement platform is one of them.
Restaurateurs should rely on procurement platforms to gain full visibility of price changes for recurring items. This is especially important in current times, with the rising global inflation and uncertainty regarding COVID-19 which affect the supply chain.
With the many reports provided by Food Market Hub, restaurateurs can easily keep track of their monthly spending and navigate historical transactions with ease. This then enables them to pinpoint any hidden opportunities for reducing expenditure.
A streamlined procurement process can contribute to bottom-line profitability
With Food Market Hub, restaurateurs can enjoy various benefits which lead to increased profit in the long run. Our cloud-based procurement platform ensures that restaurateurs can digitise all back-end operations with complete transparency.
For more information on reducing food waste, visit this latest article. In getting to know Food Market Hub more, simply read this introductory guide.
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