find out how to save on restaurant purchasing
 

Restaurant Buying Groups  - Group Purchasing Organizations for Restaurants

 

Learn How Restaurant Group Purchasing Organizations Work For You

how do restaurant group purchasing organizations work

 

 

The restaurant business can be like fighting the tide.

 

It's a 24 hour/365 day business complete with general management operationational responsibility of all areas.

 

Customer checks bouncing, teen employees no showing shifts, toilets backing up.. nothing can prepare you for it all!

 

Not even parenthood.

 

The task of purchasing from all kinds of suppliers is a full time job of its own: food supplies, packaging, & equipment, uniforms?

 

It hurts just to talk about it.

 

You got into this business to follow your passion for food.

 

Let's face it.

 

No child grows up dreaming of a career in small business restaurant purchasing.

 

The problem is... it takes to much time to constantly shop for the best prices while maintaining quality?

You don't have the time or energy to shop your vendors price lists every year.

 

You also don't have the purchasing power of a major national restaurant chain.

 

Need some relief?


Pass this chore off to the experts so you can focus on the reasons you got into owning a restaurant:

 

The Customer Experience.



In the meantime, we'll likely save you a bunch of money and you'll be glad you did.

 

Try a restaurant buying organization or Group Purchasing Organization: GPO.

 

The idea is simple:

 

Through the power of group / quantity purchasing, or the pooling together of many small to midsize restaurant companies, they are able to negotiate better prices on same or equal food and supplies.

 

Really, It's that easy.

 

With only about 11% of the independent restaurants in the U.S. currently purchasing through larger buying groups, there's really a paradigm shift happening in the industry right now where independent restaurants can change how you purchase, buy the same products, but get access to better prices.

 

Here's an idea, before you join a restaurant buying group, or Group Purchasing Organization

 

make sure you will save money.

 

We will give you a free cost analysis to make sure and take the guesswork out of it.

 

Just run your quote here based on actual invoices and we'll send over the actual GPO pricing:


 

Otherwise, let's get into it!


You can jump to any of these main categories here:

 

First, let's compare the three big approaches to purchases.
 


Independent restaurants vs. gpo vs. national chains?



National restaurant chains have a competitive advantage with larger resources on so many different levels:

  • financial
  • large operations staff,
  • systems
  • volume contract purchasing power etc

 

What can you do?

 

Your strengths are different as a local restaurateur.

 

You can focus on creating fresh and unique food where the craft and taste is the priority, and the food isn't massively processed.

But, it still leaves you with all the challenges of operating the business.

 

Take advantage of a GPO's volume purchasing power!

 

Since a restaurant GPO purchases as a single company, they are able to obtain national contract pricing.

 

Cutting costs = increasing profit.

 

That's why you're in this business right?


Best part, as they add members, the volume increases and the prices keep going down so member savings get better.

 

You can get a quick quote on actual invoice here to check this pricing advantage:

 

 


Which restaurant group purchasing organization is better?

 

In any industry, there are always choices on who to buy from.

 

This is true for GPO's as well.  We have a few to chose from.

 

All the best foodservice Group Purchasing Organizations provide some very simple services to you at a great value.

  • Lowering Costs: lowering the purchase pricing is something everyone wants.
  • Great Service: the food and supplies needs to be delivered on time and reliably
  • Choices: national brands and local options.

 

Where we start to see certain companies break from the back deals with the particular industries, pricing, and partners.

 


There 5 major companies that loosely fit the mold of restaurant group purchasing organizations:

 

 

Of the 5, it really depends on your market segment.

 

For restaurants, our favorite is Leverage Buying Group.

 

We go through the reasons why at our Restaurant Buying Group Comparison page which is a must read!

 

You can always quote an invoice to see if it even makes sense to look further.
 


Is a Group Purchasing Organization right for my restaurant?  

 

Any interest in saving money on the very same food products you're already purchasing?

Then you're probably a good candidate.

 

The thousands of products and services available is so wide, you can pick and choose which products individually you want to utilize the Group Purchasing Organization.

 

There are some items where it doesn't matter how much money you spend, all brands are pretty much the same.

 

Let's face it.

 

Salt tastes like salt.

Plastic forks are all pretty much plastic forks.

Commodities exist.

 

But, there are areas where you must have quality!

 

If EVERYTHING tastes like chicken you're buying from the wrong place and it's time to rethink things.

 

Whether that's produce for you, or steak, we can help pick and choose where your money is best spent.

 

So how do we gauge what to expect before even starting?

 

Here's the deal...for our favorite GPO currently, their retention rate is over 90%!

 

That tells you a lot. 

 

A large majority of the remaining 10% stopped operating.

 

If 50% of restaurants go out of business and our favorite GPO has a 90% retention rate....

That's a good place to be.


What are the benefits of Group Purchasing Organizations for restaurants?

 

Cost Savings

 

First, take advantage of the pricing program in two major areas cost wise:

 

  • manufacturer direct pricing (the pricing is already lower vs. street pricing)
  • volume purchase agreements (negotiated off the lower manufacturer direct pricing)

 

A major chain may purchase at up to 40% less than an independent restaurant due to volume contract pricing.

 

How can you afford NOT to work with a GPO?

 


You can call 800-325-0268 or email us with any questions.

 

Purchasing Management

 

Our favorite GPO will save you time!

 

New enrollees are always focusing on the savings (which are there) but don't realize that the better GPO's can do a lot more!

 

Do you want to eliminate the hours wasted you spend on purchasing food and supplies?

 

Use the GPO's expert teams of staff instead to compare suppliers, prices, track transactions, shipments, & price negotiations etc..

 

The GPO will act as your internal in-house:

  • purchase operations
  • offloading tracking
  • negotiation (based on leveraged purchasing power)
  • management and logistics

 

This way, your hands are free to run your restaurant(s).


What about Sales Support?

 

Utilize an exclusively dedicated broadline sales team and district manager for assistance.

 

Customer Service & Support

 

If something goes wrong, you have a 3rd party advocate for purchasing!

 

Don't take a chance on getting stuck fighting your own customer service battles.

 

You'll have access to our expert staff & management for quick resolutions on little and big issues.

 

They'll solve the problem.

 

Tracking

 

You know that sick in the gut feeling you get in your stomach when you see a Salmonella or E Coli scare on the news and you're wondering if you have to worry about the food purchased in your restaurant?

 

Leverage a good GPO's tracking and sourcing systems in a food health scare instead of sitting, waiting, wondering.

 

What else benefits you?

 

Get access to annual SaveServ events, connecting the manufacturers with independent restaurants.

 

I know what you're thinking... 'what's the catch?' It's free to join, and I just start saving money? Where can I get burned?

 

No catch.

 

That's why the average retention with restaurant GPO's is well over 90%!

 

Trends and Specialties

 

Group Purchasing Organizations are a great resource of information regarding trends and innovations in the industry you don't have time keeping up with.

 

Work with a GPO who will bring the important items to you!

 

This leads us to...


Drawbacks of Group Purchasing Organizations for restaurants

Apples to Apples?

For one, all your preferred products may not be available.

 

That doesn't mean you can't source them directly.

It's very common to have a local food source for that perfect item.

 

Anything you source under the GPO will have the beneficial pricing.

 

Take advantage of it as needed!

 

Since manufacturers and suppliers are different companies we're not going to have the exact brand name product you're used to available in the GPO package suite, so check the lists carefully.

Every big food supplier whether local or via Group Purchasing Organziation has their own branding.

 

It's not the name or logo that matters.

It's the qualify level!

 

You may have a different brand but the quality level will be your choice!

 

It's this lack of 'UPC's' or Universal Product Codes which creates some complications for matching products across suppliers when price comparing.

 

Can I have it when I want it?

 

If you're ordering small amounts from a range of suppliers and used to having a shipment placed and delivered whenever you want, this may change.

 

Some GPO's may require larger orders in general, to be delivered at regular intervals.

 

But, typically well worth it for the cost savings.


How much can my restaurant save with GPO's?

 

The main reason restaurants are switching to GPO's in droves is cost.

 

It's a simple calculus.

If we can get the same qualify food and supplies at a leverage pricing, that's easy.

 

So...what can we expect?

 

We're seeing average savings between 10-30%

 

A few factors affect the expected savings:

  • Type of restaurant
  • Volume of purchases
  • Type of items
  • Mix between food and supplies
  • Delivery requirements

 

The easiest way to see is quote an sample invoice below.

 

It can be a real invoice or just one you want to test.

Use real items though so you can get a sense of expected savings.


 

Take the guesswork out of it and request your free cost analysis today and we'll tell you exactly how much you'll save.

 

 

We're happy to help with any questions at 800-325-0268 or by email.


Are Restaurant group purchasing organizations growing?

 

Umm....YES!

 

  • Approximately 40,000 restaurants a year purchase through buying groups and Restaurant Group Purchasing Organizations, or estimated growth of 4%-6% per year.
  • Some of the largest GPO's see yearly growth of over 25% annually.
  • Independent operations utilizing Group Purchasing Organizations currently account for only about 15% of the total marketplace.
  • But, independent restaurants non-affiliated with a group purchasing program account for approximately 100 billion in annual total spending dollars and today vastly outsize the group purchasing market.

 

So, yes, GPO's are growing..and there's plenty of room to grow.

 

Jump ahead of your competition and start the savings today!


How to get a quote for for restaurant GPO savings

 

Ready to see if saving money by joining a Group Purchase Organization is right for you?

No problem!


There are several ways to get started.

 

You can request your free cost analysis by contacting us via:

PHONE 800-325-0268 Give us a call and we'll walk you through the steps.

Complete this request for free cost analysis request form and we'll get started on your case right away.

 

 

Quote a sample restaurant invoice to see your ACTUAL Savings

 

Again, there is absolutely no cost to you for our services.  Call 800-325-0268 Today!

 


 

Find out how much your restaurant can save on food purchases with buying groups
 

Our Help is FREE to You!

FREE Quote For Your Invoice

   and more!

1000's of Restaurants
$Million's SAVED
SUCCESSFULLY
ENROLLED
1000's of Restaurants
$Million's SAVED

from ML

"No... Thank you.  I wish I had found group purchasing earlier.  It's a no-brainer"

from SO

"We have seen a reduction of 18% for last quarter for one location.  Can't wait to roll it out other sites."

from PA

"The cost savings I realized on purchasing went right back into upgrading our meat and produce quality.  We basically subsidized the needed move to higher grade at no cost."

from TM

"Thank you so much!  Very happy with service.  If there is any way I can contact supervisors to let them know about your great service let me know"

from TR

"I'll be honest...I didn't believe the pre-rollout saving estimates.  Seemed to good to be true.  I'm pleasantly wrong on that"

from CH

"After test at one location, we're ready to move forward across chain.  Great resource to have. "

from SD

"Wow, I can't thank you guys enough for your help...I couldn't imagine trying to tackle this on my own!"

from EF

"Thank you so much for your marvelous work.  I don't want to tell any of my restaurant buddies so this stays with us"

SUCCESSFULLY
ENROLLED