Building Strong Partnerships with Suppliers
The Backbone of a Successful Restaurant
In the restaurant industry, the importance of suppliers cannot be overstated. They provide the essential ingredients that shape the restaurant experience, for everything from soap used to mop the floors and to specialty food ingredients like truffles and caviar. The relationship between restaurants and their suppliers goes beyond just buying and selling products – it's about building strong partnerships that can help both businesses prosper and grow.
Understanding the Crucial Role of Strong Supplier Partnerships
In the restaurant business, a dependable supplier can be a valuable ally, contributing not only to the quality of dishes but also to the overall success of the establishment. The key lies in building relationships that extend beyond short-term gains, where mutual trust and respect become the cornerstones of collaboration.
Common Challenges in Establishing and Maintaining Supplier Relationships
One of the common hurdles restaurants face is the assurance of the quality of goods received. Setting high standards from the beginning and promptly addressing any problems is crucial. Early on, establishments must establish the expectation that quality is non-negotiable. Not all suppliers will adhere to these standards, making it essential to find those who share the same commitment to excellence.
Strategies for Building and Strengthening Supplier Partnerships
Honesty and respect form the bedrock of successful relationships with suppliers. Whether interacting with the voice on the phone when you’re placing your orders or the employee making the delivery, maintaining open and respectful communication is paramount. Attempting to achieve results through anger or threats rarely benefits anyone in the long run.
The Impact of Strong Supplier Relationships: A Personal Anecdote
What most people may not know is that restaurants have very varied terms of payment with suppliers. Some can be as short as 7 days and others as generous as 30 days. But when COVID closed everything, there were a number of suppliers that tried to void the terms and demand payments. Most suppliers I dealt with understood the situation and we were able to come to a mutual understanding of how to best settle the invoices. And most suppliers were comfortable sending us goods before we settled up these outstanding invoices because of the relationship I had built with them.
But there was one supplier in particular that went from 30 days to demanding payment immediately. This was someone I had worked with for over a decade across multiple restaurants and now my own business. We owed them 900$. This was a conversation where there was a lot of yelling and anger coming from one end, and shock on the other. Unlike the other suppliers, there was no respect coming from them. We ultimately settled on paying them within 2 weeks instead of 30 days and we closed our accounts with them. And when things reopened and they called us to start delivering again, we told them not to bother calling us again and that we’d moved on. The lack of compassion they showed to us compared to other suppliers ultimately drove us to their competition and soured a relationship I had spent a decade building.
Balancing Quality and Cost-Effectiveness
Maintaining a delicate balance between quality and cost requires constant communication and meticulous planning. Negotiating discounts for pre-payment or bulk orders can contribute to cost-effectiveness without compromising quality. Additionally, when faced with subpar ingredients, a calm and respectful conversation with suppliers often leads to a resolution. Fear and intimidation are not the tools of successful relationship building.
Key Metrics for Evaluating Supplier Partnerships
The fluctuation of prices on received goods serves as a vital metric for evaluating supplier success. Keeping an eye on these price variations allows restaurant owners and chefs to make informed decisions and ensures they are not caught off guard by unexpected cost increases. By diversifying suppliers based on ingredient needs, establishments can create a robust network that maximizes savings.
The Role of Technology in Managing Supplier Relationships
Technology can play a role in both managing costs and relationships. Using tools to track prices ensures that restaurants can communicate effectively with suppliers, addressing issues promptly. This hands-on approach not only streamlines operations but also reinforces the foundation of a strong and enduring partnership.
In conclusion, building robust partnerships with suppliers is not just a business strategy; it's a philosophy that underscores the longevity and prosperity of a restaurant. Nurturing these relationships with honesty, respect, and technological support ensures that the culinary journey remains a collaborative and successful endeavor.
