Month: November 2018

5 Ways You Can Develop A Successful Restaurant Owner/Supplier Relationship

If you were to ask people what the most important task a restaurant owner has to deal with, most would say it’s the food or menu. However, that’s not the most important task. Rather, it’s the building of relationships – all kinds of relationships – that are essential to your business. These relationships include suppliers, customers and employees.

By neglecting any one of these supplier relationships, and you hurt your business’ bottom line. Bear in mind that 1/3 of your business’ cost is on the food. If you don’t know where your money is being spent, it can have a negative impact on your restaurant’s growth and its health.

It’s imperative you properly manage your inventory – your business’ service and hospitality all depends on it so your customers have an experience they will always remember. You don’t want to tell your customers they’re unable to have something they really want because you failed to plan for it.

Every restaurant’s lifeline is the food suppliers. The kind of relationship you have with these suppliers will support your daily operations. The rapport you have with these suppliers can make or break your business – just like you need to hire the right manager and chef for it.

5 Key Things Your Business Needs To Ensure Your Supplier Relationship Is Successful

Nurture Your Relationships

A good relationship between a restaurateur and supplier can be beneficial to both entities. The best restaurant owners realize they need to spend their time working on bettering these relationships. Two things come about when you manage your inventory regularly:

  • You become a better manager
  • You can establish a good pace with suppliers

It’s important you nurture these relationships, so other entities will see you as someone that they should do business with. If they view you as dependable and trustworthy, suppliers will provide you with better deals, speak favorably of you and show you new products they have to offer.

Bear in mind that these relationships can make or break your reputation – be sure your reputation is a positive one.

Ask For Samples and Introductions

If you have a good relationship with a supplier, consider using it to your benefit. If there is a supplier you’re interested in doing business with, and your established supplier knows them, ask them to introduce you to them. When someone can assure others about you, it can do your business a world of good. This is really important when looking to work with small-scale producers who tend to shy away from risky business dealings.

On top of that, suppliers and sales representatives are always on the lookout for new companies to do business with, so consider sharing their name too.

It’s a “You scratch my back; I’ll scratch yours” type of business. And, it works!

While nurturing the relationship, consider asking for samples of their products. You can also ask for customer references to see what they like and don’t like about a product and the company. A relationship like this can be quite lucrative if you have information to go in on.

Work With Local Suppliers When Possible.

If your goal is to work with local producers and supplier or use specially-made ingredients, you need to do some research. Talk with the local farmers in your area or go to any of the local farmer’s markets. You can also speak with market organizers as they know a good deal of information on who you can do business with – those that are reliable and will do what you want them to do.

This kind of relationship can be quite rewarding but be sure you meet with them in person first.

If you really want to work with local entities, get involved with a local food cooperative. These are restaurants who work together and buy in bulk so that it’s easier for suppliers to make their rounds. If no co-ops are operating in your area, be the first entity to set one up by talking to other restaurant owners to see if they’re interested in putting one together.

While you may want to stay local as much as you can, you should still consider the bigger foodservice suppliers for other needs. For example, if you’re buying local chicken, you may be paying more. Save where you can on your commodity products such as flour, salt, sugar, coffee, etc. With these competitive prices, you’ll have more money to create unique foods for your guests to try and enjoy.

Speak With Your Consumers (Via Social Media)

Many food producers have learned that talking with their consumers via social media is boosting demand for their products. Engage with them by giving them something they want to talk about. Show them that you’re interested in their product. Tag suppliers in pictures of food that uses their ingredients, which will get their attention. Take pictures of their farm and/production facilities and showcase them.

The more engagement you have with them, the more willing they are to expand your network.

Share Your Generosity

These relationships are going to help your company’s bottom line, but you need to be generous, so you help theirs too. Be sure to recommend products they offer to other restaurant owners, sharing your experience with them. Their products can give you some inspiration on menu ideas. Find out from guests what they think and share their feedback with the suppliers.

Ask them for some advice when you want to develop a new menu item, which gives them some say in the process. Find out what items they feel some excitement toward. Ask them what their business goals are and how you can help them to achieve them.

Be generous and share your generosity goes a long way in establishing a good relationship with your suppliers. You may find that they give you some advice you never even considered.

Do not ever use your suppliers to further your own needs without helping them to further theirs. You don’t want it to be a one-sided relationship. Collaborate with them and leverage the relationship to ensure it’s beneficial to both of you.

5 Ways You Can Develop A Successful Restaurant Owner/Supplier Relationship

If you were to ask people what the most important task a restaurant owner has to deal with, most would say it’s the food or menu. However, that’s not the most important task. Rather, it’s the building of relationships – all kinds of relationships – that are essential to your business. These relationships include suppliers, customers and employees.

By neglecting any one of these supplier relationships, and you hurt your business’ bottom line. Bear in mind that 1/3 of your business’ cost is on the food. If you don’t know where your money is being spent, it can have a negative impact on your restaurant’s growth and its health.

It’s imperative you properly manage your inventory – your business’ service and hospitality all depends on it so your customers have an experience they will always remember. You don’t want to tell your customers they’re unable to have something they really want because you failed to plan for it.

Every restaurant’s lifeline is the food suppliers. The kind of relationship you have with these suppliers will support your daily operations. The rapport you have with these suppliers can make or break your business – just like you need to hire the right manager and chef for it.

5 Key Things Your Business Needs To Ensure Your Supplier Relationship Is Successful

Nurture Your Relationships

A good relationship between a restaurateur and supplier can be beneficial to both entities. The best restaurant owners realize they need to spend their time working on bettering these relationships. Two things come about when you manage your inventory regularly:

  • You become a better manager
  • You can establish a good pace with suppliers

It’s important you nurture these relationships, so other entities will see you as someone that they should do business with. If they view you as dependable and trustworthy, suppliers will provide you with better deals, speak favorably of you and show you new products they have to offer.

Bear in mind that these relationships can make or break your reputation – be sure your reputation is a positive one.

Ask For Samples and Introductions

If you have a good relationship with a supplier, consider using it to your benefit. If there is a supplier you’re interested in doing business with, and your established supplier knows them, ask them to introduce you to them. When someone can assure others about you, it can do your business a world of good. This is really important when looking to work with small-scale producers who tend to shy away from risky business dealings.

On top of that, suppliers and sales representatives are always on the lookout for new companies to do business with, so consider sharing their name too.

It’s a “You scratch my back; I’ll scratch yours” type of business. And, it works!

While nurturing the relationship, consider asking for samples of their products. You can also ask for customer references to see what they like and don’t like about a product and the company. A relationship like this can be quite lucrative if you have information to go in on.

Work With Local Suppliers When Possible.

If your goal is to work with local producers and supplier or use specially-made ingredients, you need to do some research. Talk with the local farmers in your area or go to any of the local farmer’s markets. You can also speak with market organizers as they know a good deal of information on who you can do business with – those that are reliable and will do what you want them to do.

This kind of relationship can be quite rewarding but be sure you meet with them in person first.

If you really want to work with local entities, get involved with a local food cooperative. These are restaurants who work together and buy in bulk so that it’s easier for suppliers to make their rounds. If no co-ops are operating in your area, be the first entity to set one up by talking to other restaurant owners to see if they’re interested in putting one together.

While you may want to stay local as much as you can, you should still consider the bigger foodservice suppliers for other needs. For example, if you’re buying local chicken, you may be paying more. Save where you can on your commodity products such as flour, salt, sugar, coffee, etc. With these competitive prices, you’ll have more money to create unique foods for your guests to try and enjoy.

Speak With Your Consumers (Via Social Media)

Many food producers have learned that talking with their consumers via social media is boosting demand for their products. Engage with them by giving them something they want to talk about. Show them that you’re interested in their product. Tag suppliers in pictures of food that uses their ingredients, which will get their attention. Take pictures of their farm and/production facilities and showcase them.

The more engagement you have with them, the more willing they are to expand your network.

Share Your Generosity

These relationships are going to help your company’s bottom line, but you need to be generous, so you help theirs too. Be sure to recommend products they offer to other restaurant owners, sharing your experience with them. Their products can give you some inspiration on menu ideas. Find out from guests what they think and share their feedback with the suppliers.

Ask them for some advice when you want to develop a new menu item, which gives them some say in the process. Find out what items they feel some excitement toward. Ask them what their business goals are and how you can help them to achieve them.

Be generous and share your generosity goes a long way in establishing a good relationship with your suppliers. You may find that they give you some advice you never even considered.

Do not ever use your suppliers to further your own needs without helping them to further theirs. You don’t want it to be a one-sided relationship. Collaborate with them and leverage the relationship to ensure it’s beneficial to both of you.

4 Key Tips To Help Your Restaurant Business Succeed

Three in five new restaurants will fail within 36 months. That’s a sobering statistic, and there’s a reason for it. The hospitality industry is one of the toughest to do business in and succeed at. The biggest reason most new restaurants fail to get off the ground is the lack of funds or the inability to maintain control over their costs.


How can you ensure this doesn’t happen to you if you want to open a restaurant?

When it comes to your costs, you need to plan ahead and consider everything – be it minor or major. For example, floor space can cost run anywhere from $100 to $800 square foot, dependent on your needs. Your plumbing, electrical and mechanical needs can run anywhere from $70,000 to $100,000 – same for equipment. Make sure your budget includes furniture.

It’s imperative to watch your spending when you decide to open a restaurant. You want to stand out but not at the price that you run yourself out of business. What are some things to consider in your budget?

Used vs. New Equipment

Believe it or not, you should be more concerned with getting the right equipment for your restaurant instead of new equipment. Restaurants that are going out of business will often have equipment you can buy for cheap. Consider second-hand options or doing some shopping on the Internet. Never buy something you don’t need right away.

Decorations

Like your business equipment, don’t get fixated on décors. You can always create a memorable experience on a low budget. All you need is a couple of impactful elements that can speak volumes to your customers. Consider paint colors or soft lighting. Add an area where guests can sign their names. Little inexpensive things go a long way in making a big impact.

Don’t buy anything fancy until your restaurant is a bit more stable.

Technology

You need to purchase a restaurant point-of-sale system, which can handle the receipts, payments, inventory, etc. Be sure to find a system that includes bookkeeping or can be integrated with one. Be sure you consider what technology your staff may need to take orders. Do they really need iPads? If you want to go hi-tech, go for second-hand models or older models.

Marketing

When you need to keep your marketing costs low, the Internet is your ticket. There are all kinds of social media sites that can help spread the word about your business for free or low price. However, you must be actively involved with the social media account to reach your target audience and increase the base. While email marketing isn’t as nice as social media, it’s still a very effective online marketing technique to reach your audience.

4 Key Tips To Help Your Restaurant Business Succeed

Three in five new restaurants will fail within 36 months. That’s a sobering statistic, and there’s a reason for it. The hospitality industry is one of the toughest to do business in and succeed at. The biggest reason most new restaurants fail to get off the ground is the lack of funds or the inability to maintain control over their costs.


How can you ensure this doesn’t happen to you if you want to open a restaurant?

When it comes to your costs, you need to plan ahead and consider everything – be it minor or major. For example, floor space can cost run anywhere from $100 to $800 square foot, dependent on your needs. Your plumbing, electrical and mechanical needs can run anywhere from $70,000 to $100,000 – same for equipment. Make sure your budget includes furniture.

It’s imperative to watch your spending when you decide to open a restaurant. You want to stand out but not at the price that you run yourself out of business. What are some things to consider in your budget?

Used vs. New Equipment

Believe it or not, you should be more concerned with getting the right equipment for your restaurant instead of new equipment. Restaurants that are going out of business will often have equipment you can buy for cheap. Consider second-hand options or doing some shopping on the Internet. Never buy something you don’t need right away.

Decorations

Like your business equipment, don’t get fixated on décors. You can always create a memorable experience on a low budget. All you need is a couple of impactful elements that can speak volumes to your customers. Consider paint colors or soft lighting. Add an area where guests can sign their names. Little inexpensive things go a long way in making a big impact.

Don’t buy anything fancy until your restaurant is a bit more stable.

Technology

You need to purchase a restaurant point-of-sale system, which can handle the receipts, payments, inventory, etc. Be sure to find a system that includes bookkeeping or can be integrated with one. Be sure you consider what technology your staff may need to take orders. Do they really need iPads? If you want to go hi-tech, go for second-hand models or older models.

Marketing

When you need to keep your marketing costs low, the Internet is your ticket. There are all kinds of social media sites that can help spread the word about your business for free or low price. However, you must be actively involved with the social media account to reach your target audience and increase the base. While email marketing isn’t as nice as social media, it’s still a very effective online marketing technique to reach your audience.

4 Key Tips To Help Your Restaurant Business Succeed

Three in five new restaurants will fail within 36 months. That’s a sobering statistic, and there’s a reason for it. The hospitality industry is one of the toughest to do business in and succeed at. The biggest reason most new restaurants fail to get off the ground is the lack of funds or the inability to maintain control over their costs.


How can you ensure this doesn’t happen to you if you want to open a restaurant?

When it comes to your costs, you need to plan ahead and consider everything – be it minor or major. For example, floor space can cost run anywhere from $100 to $800 square foot, dependent on your needs. Your plumbing, electrical and mechanical needs can run anywhere from $70,000 to $100,000 – same for equipment. Make sure your budget includes furniture.

It’s imperative to watch your spending when you decide to open a restaurant. You want to stand out but not at the price that you run yourself out of business. What are some things to consider in your budget?

Used vs. New Equipment

Believe it or not, you should be more concerned with getting the right equipment for your restaurant instead of new equipment. Restaurants that are going out of business will often have equipment you can buy for cheap. Consider second-hand options or doing some shopping on the Internet. Never buy something you don’t need right away.

Decorations

Like your business equipment, don’t get fixated on décors. You can always create a memorable experience on a low budget. All you need is a couple of impactful elements that can speak volumes to your customers. Consider paint colors or soft lighting. Add an area where guests can sign their names. Little inexpensive things go a long way in making a big impact.

Don’t buy anything fancy until your restaurant is a bit more stable.

Technology

You need to purchase a restaurant point-of-sale system, which can handle the receipts, payments, inventory, etc. Be sure to find a system that includes bookkeeping or can be integrated with one. Be sure you consider what technology your staff may need to take orders. Do they really need iPads? If you want to go hi-tech, go for second-hand models or older models.

Marketing

When you need to keep your marketing costs low, the Internet is your ticket. There are all kinds of social media sites that can help spread the word about your business for free or low price. However, you must be actively involved with the social media account to reach your target audience and increase the base. While email marketing isn’t as nice as social media, it’s still a very effective online marketing technique to reach your audience.

4 Key Tips To Help Your Restaurant Business Succeed

Three in five new restaurants will fail within 36 months. That’s a sobering statistic, and there’s a reason for it. The hospitality industry is one of the toughest to do business in and succeed at. The biggest reason most new restaurants fail to get off the ground is the lack of funds or the inability to maintain control over their costs.


How can you ensure this doesn’t happen to you if you want to open a restaurant?

When it comes to your costs, you need to plan ahead and consider everything – be it minor or major. For example, floor space can cost run anywhere from $100 to $800 square foot, dependent on your needs. Your plumbing, electrical and mechanical needs can run anywhere from $70,000 to $100,000 – same for equipment. Make sure your budget includes furniture.

It’s imperative to watch your spending when you decide to open a restaurant. You want to stand out but not at the price that you run yourself out of business. What are some things to consider in your budget?

Used vs. New Equipment

Believe it or not, you should be more concerned with getting the right equipment for your restaurant instead of new equipment. Restaurants that are going out of business will often have equipment you can buy for cheap. Consider second-hand options or doing some shopping on the Internet. Never buy something you don’t need right away.

Decorations

Like your business equipment, don’t get fixated on décors. You can always create a memorable experience on a low budget. All you need is a couple of impactful elements that can speak volumes to your customers. Consider paint colors or soft lighting. Add an area where guests can sign their names. Little inexpensive things go a long way in making a big impact.

Don’t buy anything fancy until your restaurant is a bit more stable.

Technology

You need to purchase a restaurant point-of-sale system, which can handle the receipts, payments, inventory, etc. Be sure to find a system that includes bookkeeping or can be integrated with one. Be sure you consider what technology your staff may need to take orders. Do they really need iPads? If you want to go hi-tech, go for second-hand models or older models.

Marketing

When you need to keep your marketing costs low, the Internet is your ticket. There are all kinds of social media sites that can help spread the word about your business for free or low price. However, you must be actively involved with the social media account to reach your target audience and increase the base. While email marketing isn’t as nice as social media, it’s still a very effective online marketing technique to reach your audience.

4 Commonly Overlooked Expenses Restaurant Owners Should Never Forget

Most restaurateurs fail to adequately and properly plan for the unexpected costs of their business. It is imperative you plan for everything – every contingency possible – to ensure your business succeeds in this high-stake hospitality industry. However, even if you fail to remember it all, you should still pursue your dream of owning a restaurant business.

It’s not uncommon for a business to be in the red for the first five to 10 years of the business before they see real profits coming in. It takes hard work and dedication to make a restaurant business successful. It also takes you looking realistically at your budget – where should you spend and where should you be saving?

Where are some areas you can save some money in?

Technology

Yes, your business will need technology if it is to survive and thrive, but it’s also the one area of the company that extra spending takes place. Ask yourself if your business really needs all the high-tech equipment you see advertised. Can your business survive using older tech equipment? If you can get away with the less expensive models, save yourself the cash and do it.

Marketing

In the past, your company may have needed the help of a marketing firm to spread the word about your restaurant. Today, the Internet is a restaurateur’s best friend. You’ve got all kinds of social media platforms that you can use – Facebook, Twitter, Instagram, etc. You don’t have to spend a lot of money to make an impact with your social media marketing campaign.

If you don’t feel you have the time to handle the day-to-day dealings of running a social media business (and chances are you won’t), hire a freelancer to contend with it for you. Freelancers are much cheaper than a firm.

Music

Many restaurants and retail stores have background music playing for their customers to enjoy while eating. Bear in mind that playing music in a restaurant comes with a cost. Since you are a commercial entity, you’ll need to pay a rights to music fee. This fee is a minimal cost compared to others you’ll deal with in the business, but it is one most restaurant entrepreneurs overlook and shouldn’t.

Utilities

All restaurant owners know they have to pay utilities, but they don’t ever consider the actual cost of using them. In fact, the cost may catch some owners off guard. Before you sign a contract, consider looking at the utility situation. If a prior business was located there, did they pay off their bill? Some utilities will force you to pay another entity’s debt before establishing the location in your name.

It’s unfortunate but does happen.

4 Commonly Overlooked Expenses Restaurant Owners Should Never Forget

Most restaurateurs fail to adequately and properly plan for the unexpected costs of their business. It is imperative you plan for everything – every contingency possible – to ensure your business succeeds in this high-stake hospitality industry. However, even if you fail to remember it all, you should still pursue your dream of owning a restaurant business.

It’s not uncommon for a business to be in the red for the first five to 10 years of the business before they see real profits coming in. It takes hard work and dedication to make a restaurant business successful. It also takes you looking realistically at your budget – where should you spend and where should you be saving?

Where are some areas you can save some money in?

Technology

Yes, your business will need technology if it is to survive and thrive, but it’s also the one area of the company that extra spending takes place. Ask yourself if your business really needs all the high-tech equipment you see advertised. Can your business survive using older tech equipment? If you can get away with the less expensive models, save yourself the cash and do it.

Marketing

In the past, your company may have needed the help of a marketing firm to spread the word about your restaurant. Today, the Internet is a restaurateur’s best friend. You’ve got all kinds of social media platforms that you can use – Facebook, Twitter, Instagram, etc. You don’t have to spend a lot of money to make an impact with your social media marketing campaign.

If you don’t feel you have the time to handle the day-to-day dealings of running a social media business (and chances are you won’t), hire a freelancer to contend with it for you. Freelancers are much cheaper than a firm.

Music

Many restaurants and retail stores have background music playing for their customers to enjoy while eating. Bear in mind that playing music in a restaurant comes with a cost. Since you are a commercial entity, you’ll need to pay a rights to music fee. This fee is a minimal cost compared to others you’ll deal with in the business, but it is one most restaurant entrepreneurs overlook and shouldn’t.

Utilities

All restaurant owners know they have to pay utilities, but they don’t ever consider the actual cost of using them. In fact, the cost may catch some owners off guard. Before you sign a contract, consider looking at the utility situation. If a prior business was located there, did they pay off their bill? Some utilities will force you to pay another entity’s debt before establishing the location in your name.

It’s unfortunate but does happen.

4 Commonly Overlooked Expenses Restaurant Owners Should Never Forget

Most restaurateurs fail to adequately and properly plan for the unexpected costs of their business. It is imperative you plan for everything – every contingency possible – to ensure your business succeeds in this high-stake hospitality industry. However, even if you fail to remember it all, you should still pursue your dream of owning a restaurant business.

It’s not uncommon for a business to be in the red for the first five to 10 years of the business before they see real profits coming in. It takes hard work and dedication to make a restaurant business successful. It also takes you looking realistically at your budget – where should you spend and where should you be saving?

Where are some areas you can save some money in?

Technology

Yes, your business will need technology if it is to survive and thrive, but it’s also the one area of the company that extra spending takes place. Ask yourself if your business really needs all the high-tech equipment you see advertised. Can your business survive using older tech equipment? If you can get away with the less expensive models, save yourself the cash and do it.

Marketing

In the past, your company may have needed the help of a marketing firm to spread the word about your restaurant. Today, the Internet is a restaurateur’s best friend. You’ve got all kinds of social media platforms that you can use – Facebook, Twitter, Instagram, etc. You don’t have to spend a lot of money to make an impact with your social media marketing campaign.

If you don’t feel you have the time to handle the day-to-day dealings of running a social media business (and chances are you won’t), hire a freelancer to contend with it for you. Freelancers are much cheaper than a firm.

Music

Many restaurants and retail stores have background music playing for their customers to enjoy while eating. Bear in mind that playing music in a restaurant comes with a cost. Since you are a commercial entity, you’ll need to pay a rights to music fee. This fee is a minimal cost compared to others you’ll deal with in the business, but it is one most restaurant entrepreneurs overlook and shouldn’t.

Utilities

All restaurant owners know they have to pay utilities, but they don’t ever consider the actual cost of using them. In fact, the cost may catch some owners off guard. Before you sign a contract, consider looking at the utility situation. If a prior business was located there, did they pay off their bill? Some utilities will force you to pay another entity’s debt before establishing the location in your name.

It’s unfortunate but does happen.

4 Commonly Overlooked Expenses Restaurant Owners Should Never Forget

Most restaurateurs fail to adequately and properly plan for the unexpected costs of their business. It is imperative you plan for everything – every contingency possible – to ensure your business succeeds in this high-stake hospitality industry. However, even if you fail to remember it all, you should still pursue your dream of owning a restaurant business.

It’s not uncommon for a business to be in the red for the first five to 10 years of the business before they see real profits coming in. It takes hard work and dedication to make a restaurant business successful. It also takes you looking realistically at your budget – where should you spend and where should you be saving?

Where are some areas you can save some money in?

Technology

Yes, your business will need technology if it is to survive and thrive, but it’s also the one area of the company that extra spending takes place. Ask yourself if your business really needs all the high-tech equipment you see advertised. Can your business survive using older tech equipment? If you can get away with the less expensive models, save yourself the cash and do it.

Marketing

In the past, your company may have needed the help of a marketing firm to spread the word about your restaurant. Today, the Internet is a restaurateur’s best friend. You’ve got all kinds of social media platforms that you can use – Facebook, Twitter, Instagram, etc. You don’t have to spend a lot of money to make an impact with your social media marketing campaign.

If you don’t feel you have the time to handle the day-to-day dealings of running a social media business (and chances are you won’t), hire a freelancer to contend with it for you. Freelancers are much cheaper than a firm.

Music

Many restaurants and retail stores have background music playing for their customers to enjoy while eating. Bear in mind that playing music in a restaurant comes with a cost. Since you are a commercial entity, you’ll need to pay a rights to music fee. This fee is a minimal cost compared to others you’ll deal with in the business, but it is one most restaurant entrepreneurs overlook and shouldn’t.

Utilities

All restaurant owners know they have to pay utilities, but they don’t ever consider the actual cost of using them. In fact, the cost may catch some owners off guard. Before you sign a contract, consider looking at the utility situation. If a prior business was located there, did they pay off their bill? Some utilities will force you to pay another entity’s debt before establishing the location in your name.

It’s unfortunate but does happen.