What’s it all about?
Do you ever wonder why the largest chain restaurant operators use a single distributor to deliver 90%+ of their products?
Because they build a partnership that is mutually beneficial in that it:
- Allows the operations staff to focus on high return activities rather than evaluating bids, or worse shopping at the club stores.
- Allows the distributor to focus on reducing costs rather than defending their share of business, or adjusting to changing business patterns on a week-to-week basis.
Why do many independent restaurants use as many as 7-8 distributors to deliver their products?
- Because there is no trust and transparency.
- Because many salespeople either do not have the ability or the time to really understand your business.
- Because there is no joint commitment.
- Because the independent operator has no leverage beyond the distribution level.
- Because there are long-standing relationships.
Is the Independent Restaurant more profitable than the Chain Restaurant?
- NRA Industry Averages (net profit)
- Independent Restaurants 2%-6%
- Chain Restaurants 9%-12%
What is the most significant step an independent operator can take to improve their income ?
- Select a Primary Distributor.
- Hopefully Pate Dawson-Southern Foods, but if not us select someone else!
We should understand your business.
- What are your aspirations?
- What are the problems preventing you from making progress?
What should you expect from us?
- reduce your cost of goods.
- manage your theoretical food cost.
- reduce your operational expenses.
- assist you in building your business volume.
- assist you in increasing your bottom line.
- You will feel that we are, in fact, a partner in your business.
- You will feel that the value provided by us extends far beyond the products we deliver.
- We will always talk about your business not our business.
How do we reduce your cost of goods?
Fixed Margin Pricing
- Provide information on dollars spent.
- Often a restaurant uses as many as 400 different items.
- Often 15 or fewer items account for 60% of the dollars spent.
- Point out unusual usage patterns.
- Analyze menu mix.
How do we help reduce your cost of goods?
- On the top 15-20 items that make up 50-60% of the items you sell to insure lowest possible cost
- Do this BEFORE the menu is costed and printed.
- Group similar customers together when combined volumes may lead to manufacturer’s volume rebates.
- Facilitate meetings with top manufacturers to solicit rebates.
How do we help you manage your theoretical food cost?
- Advance warning on cost changes.
- Sponsor/share costs on a system to track theoretical food cost.
- Provide ongoing Menu analysis.
- Develop systems to manage inventory.
How do we help reduce your operational costs?
- Single Point of Contact who becomes another set of eyes.
- Single set of paperwork.
- Less time invested in ordering, receiving, inventory.
- Develop discounts/share costs of management software.
- Staff Training-including in-depth food cost management.
How can we help increase YOUR bottom line?
- Thorough quarterly business reviews.
- Supply new menu ideas constantly.
- Supply ideas to achieve operational efficiencies.
- Supply comparative financial information.
- Offer programs that provide other resources to allow the independent operator to “even the playing field.”
Our Business Premise
- You will always be able to talk to the person in charge.
- We must be partners with our customers and behave as partners, which is to say that we must strive continuously find ways to reduce costs for both parties.
- We must continuously work to understand our partner’s needs, and always take the long term view of our role in filling those needs.