Purchasing includes much more than just buying the products that you need for your restaurant. It includes determining the product grade and quantities, choosing the right supplier, and negotiating a price, among other responsibilities. Making the right decision is crucial as it can really affect your profit margins. If you’re not sure if you’re making purchasing mistakes, read on as we outline everything you need to consider when your working with suppliers.
Buying and having more food than you need in storage can result in excess waste and spoilage. You want to make sure you are not over-purchasing just out of fear that you may run out of something.
On the other hand, having insufficient amounts of food available can also cost you money. Employees will need to run out to source items, paying higher prices they would with the supplier, and putting added stress on the kitchen staff.
To ensure you are not overpaying for items make sure to check prices and compare them against other suppliers. Also, stay away from “bait and switch” tactics or too good to be true offers. Suppliers may present you with attractive pricing during the pitch, but this can often lead to constant out-of-stock items once you sign a contract, leaving you to purchase more expensive alternatives.
If you’re not checking your weights that you receive off the back of the delivery trucks, you could get ripped off from dishonest suppliers. Always weigh and check the product when it’s delivered. If the numbers don’t add up, confront the supplier. Being short-weighted is an easy way to lose money.
A big purchasing mistake is to take products from the supplier without inspecting the condition. Bruised products or damaged boxes can equal more waste and cost you more money. Instead, inspect everything and reject items that are not up to par. The suppliers will take you more seriously and ensure you receive the quality you demand.
You can begin to experience low yields if you buy inferior brands that affect your product. For instance, buying a less expensive cut of meat when you own a steak restaurant could affect the quality and taste of your food, turning off customers. You don’t need to buy expensive and high-quality items for everything, just the products that matter. If you don’t outline to the suppliers exactly the grade, and quality of the products you require you could be paying more for an inferior product, so know what you need and be specific.
Purchasing mistakes can make or break your business. Lost monies due to sloppy product management can really affect your profit and losses. That’s where we can help. At Optimum Control, we offer restaurant management software to help you manage your inventory and optimize your profits. Contact us today!