tag:blogger.com,1999:blog-22759409217289655792024-03-04T21:39:03.367-08:00Fred's Purchasing InsightsInsights takes you inside the world of professional food-service purchasing. The author prepares you for negotiation success, offering tips, tactics and strategies that guarantee bankable savings for your food service business. Never overpay again!Fred Favolehttp://www.blogger.com/profile/03660595941545767003noreply@blogger.comBlogger51125tag:blogger.com,1999:blog-2275940921728965579.post-33719786232861972992015-01-23T07:34:00.000-08:002015-01-23T07:34:26.223-08:00Foodservice Chains Build On Performance Conclusions<div class="separator" style="clear: both; text-align: center;">
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<strong>Y</strong>our cost improvement strategy is on solid ground if based upon restaurant profits and brand positioning relative to the competition. </div>
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The purchasing supply-chain contribution to your business should be driven by activities that contribute to the cost positioning of your chain. </div>
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Ideally, the involvement of purchasing and R&D, working with marketing and operations in part of your performance management process. This interactive dynamic sets the stage for overall spend and menu success. </div>
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If you don't have the resources on staff, consider outsourcing as a tremendous and affordable solution to drive your business to the next level of efficiency. </div>
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The really great restaurant chains excel at the <strong><i>Value Improvement Process and you can too! </i></strong></div>
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<u>Start with these 4 basic steps:</u> </div>
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<li style="margin: 0px; padding: 0px;">Identifying key areas of investigation </li>
<li style="margin: 0px; padding: 0px;">Set appropriate cost targets <strong> </strong></li>
<li style="margin: 0px; padding: 0px;">analyze options in each area <strong> </strong></li>
<li style="margin: 0px; padding: 0px;">secure resources to complete the work</li>
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The process we use with emerging chains or franchising organizations is to form small groups knowledgeable about specific areas of the business. Then, during monthly meetings or via online webinars, ideas are discussed and the best are presented to senior management.</div>
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If you would like to discuss the challenges facing your foodservice business or would like to learn about our<i> Free</i> spend analysis, give us a call today....It's Your Money!</div>
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To Higher Profits! Fred </div>
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<em><span style="font-size: x-small;">Fred M. Favole, is Founder & CEO of <strong>Strategic Purchasing Services (SPS)</strong> the industries most experienced consulting firm specializing in "outsourced" purchasing management. Office: (912) 634-0030, ffavole@hotmail.com </span></em></div>
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<span style="font-family: Arial, Helvetica, sans-serif;"><br /></span>Fred Favolehttp://www.blogger.com/profile/03660595941545767003noreply@blogger.comtag:blogger.com,1999:blog-2275940921728965579.post-4266195734150039932015-01-01T05:31:00.000-08:002015-01-01T05:31:23.124-08:00Things To Come - Foodservice 2015<table cellpadding="0" cellspacing="0" class="tr-caption-container" style="float: left; margin-right: 1em; text-align: left;"><tbody>
<tr><td style="text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi_Ko9LaRN_SFjKyjxwBbBxhPGUq6aNj9qlWC1qcNCU6nB1oV7CGXnmkSk4ntCmCKVYNO2l78asOPVWOF7u8uJ3GQmun0fXUEbNMiSHZZU7OVa74EfH0cAsHi2J15DxKgw_g_cLKwXrHK3c/s1600/Cheff+Support+AD+1.jpg" imageanchor="1" style="clear: left; margin-bottom: 1em; margin-left: auto; margin-right: auto;"><img border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi_Ko9LaRN_SFjKyjxwBbBxhPGUq6aNj9qlWC1qcNCU6nB1oV7CGXnmkSk4ntCmCKVYNO2l78asOPVWOF7u8uJ3GQmun0fXUEbNMiSHZZU7OVa74EfH0cAsHi2J15DxKgw_g_cLKwXrHK3c/s1600/Cheff+Support+AD+1.jpg" height="135" width="200" /></a></td></tr>
<tr><td class="tr-caption" style="text-align: center;">Supply Chain Matters</td></tr>
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<strong><span style="color: #252525; font-family: Arial; font-size: 10.0pt;">W</span></strong><span style="color: #252525; font-family: Arial; font-size: 10.0pt;">elcome to 2015, the
year that moderate energy prices increased consumer spending; even as
the millennial generations' craving for junk food gives way to better
food choices. Keep in mind, they just learned via Twitter
that testosterone replacement therapy has been perfected and life
expectancy is now 87.45 years<b>!</b><span class="apple-converted-space"> </span> <o:p></o:p></span></div>
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<span style="color: #252525; font-family: Arial; font-size: 10.0pt;">Depending on your
industry segment, your competitor’s changes in menu or service style to gain the profit or competitive advantage can be subtle; like fast food restaurants hiding the condiments, your favorite pub downsizing the personal size pizza or that national bar
and grill chain adding a take-out charge to your take-out order. Expect more of
the same in the New Year.<o:p></o:p></span></div>
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<span style="color: #252525; font-family: Arial; font-size: 10.0pt;">As industry
consultants we are lucky enough to work several <b>"</b>hot<b>"</b> emerging chains with unique menus and trend setting concepts. We work with them to source new items, develop contracts and manage the supply-chain process. Future restaurant chain leaders will find 3 basic ways to reach the<span class="apple-converted-space"> </span>teen to twenty<span class="apple-converted-space"> something </span>age group; social media, healthy offering and olfactory sensations. This kicker this year these basics have found there was into the QSR and Fast Casual segments.</span></div>
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<span style="color: #252525; font-family: Arial; font-size: 10.0pt;">Gone are the days where double size-it promotions, $2.00 off coupons, and 36 oz sugar cola's can draw new customers, especially for the <b>"</b><em>Homeland</em><b>"</b> generation.<o:p></o:p></span></div>
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<b><span style="color: #252525; font-family: Arial; font-size: 10.0pt;">Segment Movers for 2015</span></b><span style="color: #252525; font-family: Arial; font-size: 10.0pt;"><o:p></o:p></span></div>
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</span></span><!--[endif]--><strong><span style="color: #252525; font-family: Arial; font-size: 10.0pt;">Fast Casual</span></strong><span style="color: #252525; font-family: Arial; font-size: 10.0pt;"> concepts with
continue to fight each other for market share. And, innovators like<em> Anthony Pigliacampo at Modmarket Farm
Fresh Eateries (<st1:city w:st="on"><st1:place w:st="on">Denver</st1:place></st1:city>)</em>
and Ron Siegel of <em>Chickpea
International (NYC) will continue </em>to<em> </em>focus on fresh, healthy and
tasty fare, while offering real dining value. <o:p></o:p></span></div>
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</span></span><!--[endif]--><strong><span style="color: #252525; font-family: Arial; font-size: 10.0pt;">Casual Dining </span></strong><span style="color: #252525; font-family: Arial;"><span style="font-size: 10pt;">giants that serve
up more of the same seafood and Italian dishes year after year will
continue to struggle, closing stores faster </span><span style="font-size: 13px;">than</span><span style="font-size: 10pt;"> they can remodel.
Real growth in this segment does not come easily, primarily because the
competition is keen and emerging chains can move faster
and offer more exciting menu dishes. </span></span><span style="color: #222222; font-family: Arial; font-size: 10.0pt;"><o:p></o:p></span></div>
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</span></span><!--[endif]--><strong><span style="color: #252525; font-family: Arial; font-size: 10.0pt;">QSR </span></strong><span style="color: #252525; font-family: Arial; font-size: 10.0pt;">restaurants may
outpace all segments in increased profits, partly because they are starting to
think "green and healthy" and mostly because the <i>Affordable Healthcare Act </i>in
2015 will force them to reduce non-management staff working sub-30 hour weeks.
This unfortunate (<em>ha ha</em>)
situation does offer many operators an opportunity to pocket this
political cash gift since they don't have to pay insurance. </span><span style="color: #222222; font-family: Arial; font-size: 10.0pt;"><o:p></o:p></span></div>
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<strong><span style="color: #252525; font-family: Arial; font-size: 10.0pt;">Distributors Are No Longer Price Friendly </span></strong><span style="color: #252525; font-family: Arial; font-size: 10.0pt;"><o:p></o:p></span></div>
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<span style="color: #252525; font-family: Arial; font-size: 10.0pt;">Not even the<span class="apple-converted-space"> </span><i>Wall
Street Journal</i><span class="apple-converted-space"> </span>knows why
Sysco’s purchase of U.S. Foods has been delayed. Let’s accept the
fact that it's hard to turn the Queen Mary even in calm waters, as Super-Cube downsizes sales and support staff. <o:p></o:p></span></div>
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<span style="color: #252525; font-family: Arial;"><span style="font-size: 10pt;">What operators really need to watch out for is Machiavellian category management programs from some distributors that restrict open market purchases and distort the true cost of goods. If you are not
controlling 80% of what you spend through direct manufacturer contracting, you need to retain a professional purchasing support service. If you have a home-grown </span><span style="font-size: 13px;">management</span><span style="font-size: 10pt;"> mentality, then at least consider using an outside audit service to manage price-compliance within your supply chain. <o:p></o:p></span></span></div>
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<strong><span style="color: #252525; font-family: Arial; font-size: 10.0pt;">Your Foodservice Career</span></strong><span style="color: #252525; font-family: Arial; font-size: 10.0pt;"><o:p></o:p></span></div>
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<span style="color: #252525; font-family: Arial;"><span style="font-size: 10pt;">2015 will be the best year since 2005 for you
to break into management, get promoted, change companies or retire from you day job and open your own </span><span style="font-size: 10pt;">foodservice business.<o:p></o:p></span></span></div>
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<span style="color: #252525; font-family: Arial;"><span style="font-size: 10pt;">This year the “</span></span><em style="color: #252525; font-family: Arial; font-size: 10pt;">hot
chain</em><span style="color: #252525; font-family: Arial;"><span style="font-size: 10pt;">” concepts will add culinary to develop or refine new taste experiences and </span><span style="font-size: 10pt;">there is always a need
for experienced restaurant operations managers willing to work long-hours and relocate
to new growth markets. </span></span></div>
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<span style="color: #252525; font-family: Arial;"><span style="font-size: 10pt;">If you have the what it takes, make your move
between March and May, the best months in the year to land that new career opportunity!<o:p></o:p></span></span></div>
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<span style="color: #252525; font-family: Arial;"><span style="font-size: 10pt;">Why not make your New Year's resolution </span><span style="font-size: 10pt;">to stay current with your industry by attending a trade show, taking a
professional improvement course, work smarter-not harder, then<b> “</b><i>pay it forward</i><b>"</b> by sharing your knowledge,
experience and passion for this great industry with the next generation of
foodservice professionals.<o:p></o:p></span></span></div>
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<span style="color: #252525; font-family: Arial; font-size: 10.0pt;">To Your Success in the New Year!<o:p></o:p></span></div>
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<b><i><span style="color: #252525; font-family: "Trebuchet MS"; font-size: 10.0pt; mso-bidi-font-family: Arial;">Fred</span></i></b><b><span style="color: #252525; font-family: Arial; font-size: 10.0pt;"><o:p></o:p></span></b></div>
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<em><span style="color: #252525; font-family: Arial; font-size: 10.0pt;">Fred Favole, is Founder & President of</span></em><strong><i><span style="color: #252525; font-family: Arial; font-size: 10.0pt;"> Strategic
Purchasing Services</span></i></strong><em><span style="color: #252525; font-family: Arial; font-size: 10.0pt;"> (SPS), <st1:country-region w:st="on"><st1:place w:st="on">America</st1:place></st1:country-region>’s most experienced
consulting firm specializing in foodservice purchasing management. Ask Fred
about a solution for your business; P: 912-634-0030, e-mail:
ffavole@hotmail.com</span></em><span style="color: #252525; font-family: Arial; font-size: 10.0pt;"><o:p></o:p></span></div>
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Fred Favolehttp://www.blogger.com/profile/03660595941545767003noreply@blogger.comtag:blogger.com,1999:blog-2275940921728965579.post-57226243731491332782014-11-19T05:40:00.002-08:002014-11-19T11:36:47.456-08:00Who's Really Managing Your Foodservice Purchasing?<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjHnCbM-wh_OKPvvEJx4OW-JPVpb_9kcBU9KWW8fPc71rq_fbrQihhv-NKhvf7twieXWWjdGUKr6L4yG_Ozvs_86u_mY5xZ7WcATSbO-gIwbTa6XRHLudWh-lPReWlhndSMr_WL1BjdlLEq/s1600/cost+managment.jpg" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjHnCbM-wh_OKPvvEJx4OW-JPVpb_9kcBU9KWW8fPc71rq_fbrQihhv-NKhvf7twieXWWjdGUKr6L4yG_Ozvs_86u_mY5xZ7WcATSbO-gIwbTa6XRHLudWh-lPReWlhndSMr_WL1BjdlLEq/s1600/cost+managment.jpg" height="239" width="320" /></a></div>
<span style="color: #222222; font-family: Arial, Verdana, sans-serif; font-size: 12px;"><b>O</b></span><span style="background-color: white; color: #222222; font-family: Arial, Verdana, sans-serif; font-size: 12px;">f all the non-operational activities that produce success in foodservice, purchasing provides management with the greatest challenge.</span><br />
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<span style="background-color: white; color: #222222; font-family: Arial, Verdana, sans-serif; font-size: 12px;">The old school buying philosophy was to select the lowest bidder and make sure the restaurants received the right product on time. Because the buying function was undervalued, there was no chair for the purchasing guy at the board-room table. More often than not, buyers were isolated and had little interaction with the chain's culinary, operations and marketing departments. </span></div>
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<span style="background-color: white; color: #222222; font-family: Arial, Verdana, sans-serif; font-size: 12px;">Then, progressive companies like; Marriott, T.G.I. Friday's and Howard Johnson's, driven by the force of strong purchasing executive personalities helped to change the balance of pricing power between the chain customer, program distributor and manufacturer. </span></div>
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<span style="background-color: white; color: #222222; font-family: Arial, Verdana, sans-serif; font-size: 12px;">Today, for the most part, this approach has given way to “team” decisions regarding vendor selections and forward buying strategies, in what I call the era of </span><em style="color: #222222; font-family: Arial, Verdana, sans-serif; font-size: 12px;">soft purchasing. Who really manages your foodservice purchasing </em><span style="color: #222222; font-family: Arial, Verdana, sans-serif;"><span style="font-size: 12px;">depends on your supply-system and ability to identify true cost. In recent years the balance of buying power has shifted back to the distributor, aided by willing manufacturers. The exceptions are </span></span><span style="background-color: white; color: #222222; font-family: Arial, Verdana, sans-serif; font-size: 12px;">emerging chains like Modmarket Fresh Eateries (CO) PDQ (FL) and Chickpea International (NY), who focus on executing unique menus, while fighting to maximize of every dollar of spend.</span></div>
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<strong style="color: #222222; font-family: Arial, Verdana, sans-serif; font-size: 12px;">Next Level Buying - Vendor Selection</strong><br />
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<span style="background-color: white; color: #222222; font-family: Arial, Verdana, sans-serif; font-size: 12px;">Often overlooked in the overall buying process is the importance of vendor selection. The selection of new suppliers is often restricted in "One-Stop" delivery programs. </span><span style="background-color: white;"><span style="color: #222222; font-family: Arial, Verdana, sans-serif;"><span style="font-size: 12px;">Strategic Purchasing (SPS) specializes in supporting emerging chains by building cost-effective purchasing supply-chain systems. Our innovative category buying and specialized re-distribution system is changing the vendor selection process. </span></span></span></div>
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<span style="color: #222222; font-family: Arial, Verdana, sans-serif; font-size: 12px;">Food Cost Thieves</span></strong><br />
<span style="background-color: white; color: #222222; font-family: Arial, Verdana, sans-serif; font-size: 12px;">The challenges of developing and maintaining an efficient supply-chain are many, especially when true costs are not transparent to the operator and hidden profit centers (distributor) prevail. The avenue of dishonesty (transparency is a more politically correct term) in foodservice distribution and manufacturer programs is a winding road paved with temptation. </span><br />
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<span style="background-color: white; color: #222222; font-family: Arial, Verdana, sans-serif; font-size: 12px;">There is no excuse for distributor or suppliers to raise prices counter to changes in commodity markets or overhead costs but that happens every day. This practice, along with participation in earned-income programs often add 7-9% to the operators' true delivered costs. The operators response is to private label products and forward contract prices.</span><br />
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<span style="background-color: white; color: #222222; font-family: Arial, Verdana, sans-serif; font-size: 12px;">Our great industry is faced with an ethical challenge of continuing under the economically false assumption that a $1.65 distributor fee or 6.5 % blended delivery margin can actually generate the $185. gross profit per delivery most distributor require to be profitable. </span><br />
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<span style="background-color: white; color: #222222; font-family: Arial, Verdana, sans-serif; font-size: 12px;">Are restaurant operators willing to continue buying national brands that offer deep discounts and long-term pricing to the major chains or buying third party buying groups, while loyal but smaller chain customers pay more for the same products? There are numerous, more subtle forms of food cost theft, but you get the picture. </span><br />
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<strong style="color: #222222; font-family: Arial, Verdana, sans-serif; font-size: 12px;">Show Me the Money!</strong><br />
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<span style="background-color: white; color: #222222; font-family: Arial, Verdana, sans-serif; font-size: 12px;">Every proactive procurement program starts a buying strategy, a long-range plan, and a systematic approach that advances menu profit objectives. If your process has a disconnect anywhere in the supply-chain, you are losing money. </span><br />
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<span style="background-color: white; color: #222222; font-family: Arial, Verdana, sans-serif; font-size: 12px;">For now, think again about who is really managing your purchasing process. Is delegating spend management to a non-professional within your organization the best way to assure high-performance and profitable growth? </span><br />
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<span style="background-color: white; color: #222222; font-family: Arial, Verdana, sans-serif; font-size: 12px;">To Higher Profits</span><strong style="color: #222222; font-family: Arial, Verdana, sans-serif; font-size: 12px;">! </strong><br />
<span style="background-color: white; color: #222222; font-family: Arial, Verdana, sans-serif; font-size: 12px;">Fred</span><br />
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<em style="color: #222222; font-family: Arial, Verdana, sans-serif; font-size: 12px;">Fred Favole is Founder / CEO of <strong>Strategic Purchasing Services</strong> (SPS), America's most experienced foodservice consulting firm specializing department outsourcing and COP cost reduction. Ask us about a free consultation or spend assessment today! Contact (912) 634-0030, e-mail: ffavole@hotmail.com </em>Fred Favolehttp://www.blogger.com/profile/03660595941545767003noreply@blogger.comtag:blogger.com,1999:blog-2275940921728965579.post-58531056410596721762014-10-16T07:29:00.000-07:002014-10-16T07:29:26.271-07:00Proactive Procurement in the New Supply-Chain<div class="separator" style="clear: both; text-align: center;">
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<b>T</b>oday’s discussion tackles the question of whether a
food service organization can change the new supply-chain enough to reduce food
costs and thereby increase profits.</div>
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The answer depends on whether or not you can distinguish
between a <b>“</b>distributor managed pricing program<b>”</b> from a true-cost of goods
model which correlates production costs, commodity markets with finished goods pricing.</div>
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Most emerging restaurant chains
pay less attention to true costs than they do pressing the distributor for
lower delivery margins and suppliers for rebates. From my 20 years consulting with more than 60 restaurant
and hotel chains, I guarantee that any direct cost associated retaining a purchasing professional is an extremely sound investment.<o:p></o:p></div>
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<a href="https://www.blogger.com/null" name="toc_4"></a><a href="https://www.blogger.com/null" name="chain"></a><b><span style="font-size: 16pt;">What’s
wrong with the new food service supply chain?</span></b><b><span style="font-size: 16pt;"><o:p></o:p></span></b></div>
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Traditionally,
chains worked hard to move away from distributor managed purchases; managed product sourcing and structured pricing agreements with limited outside influences, and developed manufacturer sales advocates. </div>
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Pre-2000, the transport of contracted products was handled by the supplier directly with the foodservice chain or co-managed with freight carriers. While there was never was "true" pricing transparency; in past years supply partners discussed freight, production costs, overhead, sales overages, and distributor discussed financials. <o:p></o:p></div>
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Today's new food service supply model
or should I say, the“<i>multi-income stream approach</i>” that is taken by many distributors. This splits costing areas into watertight distributor profit centers. All this is happening even as chains rush to reduce their purchasing staff or delegate responsibility to non-procurement managers. You can bet the
tremendous growth of group purchasing organizations (GPO's) can be traced to staff
reduction. However, this comes at considerable bottom line cost to the food service operator. <o:p></o:p></div>
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Where the essence of procurement supply chain management
has been transparency, and management of the cost components to the purchase there are two drivers changing this model, the are; <u>manufacturer segment specialization</u> (ie: designated as a local chain, regional, national or broker /distributor managed program) and <u>distributor category management.</u> </div>
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Both systems limit the chains ability to source the best product available at the best price. Making the task harder is direct collaboration between the manufacturer and distributor operating the single source system. <o:p></o:p></div>
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Consider the 100-unit chain buying 15,000 lbs. per month of a standard breaded chicken
tender under the distributors private label, for $2.55 per pound. The chain opens a restaurant 500 miles away and discovers the same product under the manufacturer label sells for $2.40 per pound. At the NRA show the buyer meets with the supplier directly and they reach an agreement for a private label program for only $2.25 per pound! </div>
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Lets look at this example from the product sourcing perspective. The
distributor’s single-source buying system offers chicken tender for $2.55 lb. and they do not inventory a competitive product. The chain buyer asks the supplier for a special price based a volume purchase commitment, and the supplier refuses, stating "this is not allowable under the agreement we have with your distributor".</div>
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Every seasoned buyers
reading this blog is shouting "foul" and will be quick to point our there are laws against price-fixing, The “<i>Robinson-Patman Act</i>” or Interstate Commerce regulations; ...inside the ropes, however, they lament about how earned income, single sourcing, and greed have distorted the "true" cost of goods in the new age supply-chain. <o:p></o:p></div>
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Is our buyer daunted by these obstacles? Never!</div>
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Not wanting the chains' purchasing power to go down the drain and wishing to use his strategic buying plan for 2015, a lower cost supplier is sourced from outside the controlled supply system. The new price is only $2.30 per pound and the supplier offers firm pricing. Now the bad news! The potential program is derailed because the new supplier does not have a financial relationship with the distributor resulting in higher inbound freight<o:p></o:p></div>
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Purchasing managers must
develop missionary zeal in making the right distributor and vendor selections, and implement proactive procurement programs that allow the chain to take back the management of their supply-chain. It's the key to improved purchasing, higher profits, future cost-controls, and culinary independence.<o:p></o:p></div>
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To Higher Profits, Fred <o:p></o:p></div>
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<i>Fred Favole is Founder/CEO of <b>Strategic Purchasing Services</b> (SPS), America's most experience foodservice consulting firm specializing in staff outsourcing and cost reduction management. Contact SPS for a free spend assessment or purchasing consultation: Office: (912) 634-0030, Email: ffavole@hotmail.com</i></div>
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Fred Favolehttp://www.blogger.com/profile/03660595941545767003noreply@blogger.comtag:blogger.com,1999:blog-2275940921728965579.post-43133379340642738522014-02-17T11:59:00.000-08:002014-02-17T11:59:00.201-08:00Lessons from The Olympics<h5 style="background-color: white; color: #222222; font-family: Arial, Tahoma, Helvetica, FreeSans, sans-serif;">
<b style="font-size: small; line-height: 11.1pt;"><span style="font-family: Arial;">I</span></b><span style="font-family: Arial; font-weight: normal; line-height: 11.1pt;"><span style="font-size: xx-small;">s your foodservice organization ready to annihilate the competition leading to the total destruction of their most profitable menu offerings? </span></span></h5>
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<span style="font-family: Arial;"><span style="font-size: xx-small;">Creating the proper “<i>supersport</i>” attitude with advanced culinary-purchasing-operations teamwork the rocket science blackboard schematics of the New England Patriots. <o:p></o:p></span></span></div>
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<span style="font-size: xx-small;">Foreplay To Success </span><span style="font-size: xx-small;"> </span></div>
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<span style="font-size: xx-small;"><u><span style="font-family: Arial;">Increase Supplier Performance</span></u><span class="apple-converted-space"><span style="font-family: Arial;"> </span></span><span style="font-family: Arial;">– make sure your suppliers are meeting your objectives, don’t merely maintain the relationship – build it.<o:p></o:p></span></span></div>
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<span style="font-size: xx-small;"><u><span style="font-family: Arial;">Reduce The Buying Cycle<span class="apple-converted-space"> </span></span></u><span style="font-family: Arial;">-- most suppliers no longer offer long-term pricing unless you take the risk, so streamline your bid process and focus on quarterly bids that generate even modest savings or cost-avoidance.<o:p></o:p></span></span></div>
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<span style="font-size: xx-small;"><u><span style="font-family: Arial;">Cut Purchasing Costs and Overhead</span></u><span class="apple-converted-space"><span style="font-family: Arial;"> </span></span><span style="font-family: Arial;">– lower operating costs by outsourcing where you don’t have on-staff staff expertise. If company-buying responsibility rests with the multi-tasking executive in the corner office who does many things “adequately”, ask your distributor if your prices are comparable with your competitors’.<o:p></o:p></span></span></div>
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<span style="font-size: xx-small;"><u><span style="font-family: Arial;">Reduce Maverick Purchasing and Increase Control<span class="apple-converted-space"> </span></span></u><span style="font-family: Arial;">– increases spend management and control purchases - you will need to maximize every purchase dollar. </span></span></div>
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<span style="font-size: xx-small; line-height: 18.479999542236328px;">Whose chain menu will reign supreme?</span></div>
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<span style="font-weight: normal;">From the Sochi Olympic Stadium to Kitchen Stadium - Iron Chef, the lesson is the same...challenge your Gastronutritional and creative Team to gain the People's ovation and make your culinary-purchasing ROCK. </span></h4>
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<span style="font-weight: normal;">Here are artistic creations spotted on slopes on the way to Russia! </span> </h4>
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<span style="font-family: Arial; font-size: 10pt;">PRETZEL EVERYTHING</span><span style="font-family: Arial; font-size: 6.5pt;"><o:p></o:p></span></h2>
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<b><span style="color: #e36356; font-family: Arial; font-size: 11pt;">Breads, twists, wraps, nuggets</span></b><span style="font-family: Arial; font-size: 8.5pt;"><o:p></o:p></span></div>
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<span style="font-family: Arial; font-size: 12pt;">MIS-MASH</span><span style="font-family: Arial; font-size: 6.5pt;"><o:p></o:p></span></h2>
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<b><span style="color: #e36356; font-family: Arial; font-size: 11pt;">Haute Jewish Deli (amped up chicken liver, peppered pastrami; other - Beef potato chips, marshmallows &</span></b><span class="apple-converted-space"><b><span style="color: #e36356; font-family: Arial; font-size: 9.5pt;"> </span></b></span><b><span style="color: #e36356; font-family: Arial; font-size: 11pt;">macadamia nuts, Asian-American comfort food (hand held)</span></b><span style="font-family: Arial; font-size: 8.5pt;"><o:p></o:p></span></div>
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<span style="font-family: Arial; font-size: 12pt;">The NEW COBB SALAD</span><span style="font-family: Arial; font-size: 6.5pt;"><o:p></o:p></span></h2>
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<b><span style="color: #e36356; font-family: Arial; font-size: 11pt;">Trendy ingredients (jerk, ABF chicken, Italian ham, fried avocados</span></b><span style="font-family: Arial; font-size: 8.5pt;"><o:p></o:p></span></div>
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<b><span style="color: #e36356; font-family: Arial; font-size: 8.5pt;">More BROCCOLI</span></b><span style="font-family: Arial; font-size: 8.5pt;"><o:p></o:p></span></div>
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<b><span style="color: #e36356; font-family: Arial; font-size: 11pt;">Frittata, broccoli slaw, roasted, as pizza topping, and</span></b><span style="font-family: Arial; font-size: 8.5pt;"><o:p></o:p></span></div>
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<b><span style="color: #e36356; font-family: Arial; font-size: 11pt;">Pizza oven-roasted cauliflower with whipped goat feta<o:p></o:p></span></b></div>
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<span style="font-family: Arial; font-size: 12pt;">Wraps With an Attitude<o:p></o:p></span></h2>
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<span style="font-family: Arial; font-size: 12pt;"> <o:p></o:p></span></h2>
<h2 style="color: black; font-size: 11px; line-height: normal; margin: 0in 0in 12pt; position: relative;">
<span style="font-family: Arial; font-size: 12pt;">TO-GO "car cups"</span><span style="font-family: Arial; font-size: 6.5pt;"><o:p></o:p></span></h2>
</td><td style="height: 16.8pt; padding: 1.8pt; width: 149.4pt;" valign="top" width="249"><div class="MsoNormal" style="line-height: 11.1pt;">
<b><span style="color: #e36356; font-family: Arial; font-size: 11pt;">Street food in a great wrap, taking it to the Food Court competition<o:p></o:p></span></b></div>
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<br /></div>
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<br /></div>
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<br /></div>
<div class="MsoNormal" style="line-height: 11.1pt;">
<b><span style="color: #e36356; font-family: Arial; font-size: 11pt;">Actually fits both Yugo & Mercedes cup holders, how about that: holds finger foods from fried fish to whiskey butterscotch parfaits.</span></b><span style="font-family: Arial; font-size: 8.5pt;"><o:p></o:p></span></div>
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</tbody></table>
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<br /></div>
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<span style="font-size: xx-small;">To Higher Profits!</span></div>
<div class="MsoNormal" style="background-color: white; color: #222222; font-family: Arial, Tahoma, Helvetica, FreeSans, sans-serif; font-size: 14px; line-height: 18.479999542236328px;">
<span style="font-size: xx-small;">Fred</span></div>
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<br /></div>
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<i><span style="font-size: xx-small;">Fred Favole is the Founder/President of <u>Strategic Purchasing Services</u> (SPS) and Chain-Link Culinary Services (CLCS); America’s most experienced consulting service for foodservice chains. Contact information: P: 912-634-0030 e-mail:<a href="mailto:fred@strategicpurchasingservices.com" style="color: #888888; text-decoration: none;">fred@strategicpurchasingservices.com</a></span></i></div>
Fred Favolehttp://www.blogger.com/profile/03660595941545767003noreply@blogger.comtag:blogger.com,1999:blog-2275940921728965579.post-58732950317120731632013-12-26T05:05:00.000-08:002014-01-25T08:02:32.862-08:00Things To Come: Food Service 2014 <div class="separator" style="clear: both; text-align: center;">
</div>
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiR4EuhG6GorJNhWjVJGi7ZwGmoZssePljk4oSOxuX1mcMrK6mbTmmIUnkvTRZHauv9bEZMSPlbGAxKZpm4ZnqIZtR0nBNUBg-fDo0r6JXc7t3YNMgp85VMW4nwh29QA92LTtmLtUswgJXj/s1600/03STRATEGIC_PURCHASING_LOGO.JPG" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img alt="" border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiR4EuhG6GorJNhWjVJGi7ZwGmoZssePljk4oSOxuX1mcMrK6mbTmmIUnkvTRZHauv9bEZMSPlbGAxKZpm4ZnqIZtR0nBNUBg-fDo0r6JXc7t3YNMgp85VMW4nwh29QA92LTtmLtUswgJXj/s320/03STRATEGIC_PURCHASING_LOGO.JPG" height="215" title="The Foodservice Culinary-Purchasing Solution" width="320" /></a><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiR4EuhG6GorJNhWjVJGi7ZwGmoZssePljk4oSOxuX1mcMrK6mbTmmIUnkvTRZHauv9bEZMSPlbGAxKZpm4ZnqIZtR0nBNUBg-fDo0r6JXc7t3YNMgp85VMW4nwh29QA92LTtmLtUswgJXj/s1600/03STRATEGIC_PURCHASING_LOGO.JPG" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em; text-align: left;"><br /></a></div>
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<div style="text-align: left;">
<span style="color: #333333; font-family: Arial;">2014 the year that consumers will be
spending more, which translates to more posteriors in more restaurant seats. Are you fully prepared to handle this new business. </span></div>
<div style="text-align: left;">
<span style="color: #333333; font-family: Arial;"><br /></span></div>
<div style="text-align: left;">
<span style="color: #333333; font-family: Arial;">Depending on your industry segment and region of the country; changes in products or
service style can be subtle or you you may need a major renovation. </span><span style="color: #333333; font-family: Arial;">Here are a few insights to consider. </span></div>
</div>
<div style="margin-bottom: .0001pt; margin: 0in; text-align: justify;">
<br /></div>
<div style="margin-bottom: .0001pt; margin: 0in; text-align: justify;">
<div style="text-align: left;">
<span style="color: #333333; font-family: Arial;">As industry consultants we're lucky enough to work with exciting chains all over the country. We've seen some trends popping up on menus that is sure to move mainstream in 2014. You need to reach new customer through their senses, both intellectual (ie: healthy eating or great value) and olfactory.</span></div>
</div>
<div style="margin-bottom: .0001pt; margin: 0in;">
<span style="color: #333333; font-family: Arial;"><u><br /></u></span></div>
<div style="margin-bottom: .0001pt; margin: 0in;">
<span style="color: #333333; font-family: Arial;"><u>Fast Casual</u></span><span class="apple-converted-space"><span style="color: #333333; font-family: Arial;"> </span></span><span style="color: #333333; font-family: Arial;">concepts with continue to fight each
other for market share as innovators like <i>Modmarket</i><em> Farm Fresh Eateries, Great Wraps </em>and<span class="apple-converted-space"> </span><em>Garbanzo Mediterranean Grill</em><span class="apple-converted-space"> focus</span> on fresh & healthy, while
delivering taste sensations that consumer’s translate into dining value. </span><span style="font-family: Arial;"><o:p></o:p></span></div>
<div style="margin-bottom: .0001pt; margin: 0in;">
<br /></div>
<div style="margin-bottom: .0001pt; margin: 0in;">
<strong><u><span style="font-family: Arial; font-weight: normal;">Multi-concept</span></u></strong><span class="apple-converted-space"><span style="font-family: Arial;"> </span></span><span style="font-family: Arial;">casual dining giants serving up more of the same
seafood and Italian dishes will continue to struggle with declining sales, but
they can look forward to improvements in 2014.
However, real growth in this segment does not come easily because the
faster moving and clearer thinking emerging chain innovators keep introducing
spot-on trendy products. <o:p></o:p></span></div>
<div style="margin-bottom: .0001pt; margin: 0in;">
<br /></div>
<div style="margin-bottom: .0001pt; margin: 0in; text-align: justify;">
<div style="text-align: left;">
<span style="font-family: Arial;">Savvy executives have discovered that <span class="apple-converted-space">re</span><u>-imagining</u><span class="apple-converted-space"> the menu is far </span>cheaper and faster
than<span class="apple-converted-space"> “</span><u>re</u>-<u>branding.”</u><span class="apple-converted-space"> </span> They are looking to add new
seasonings, sides, toppings, and specialty breads...the nitro that has fueled the segment since early 2011.
Ask whether or not you have been providing what your customer needs – or
want he wants? <o:p></o:p></span></div>
</div>
<div style="margin-bottom: .0001pt; margin: 0in; text-align: justify;">
<div style="text-align: left;">
<br /></div>
</div>
<div style="margin-bottom: .0001pt; margin: 0in; text-align: justify;">
<div style="text-align: left;">
<span style="font-family: Arial;">The “<i>hot chain</i>” concepts that we support have added culinary support to develop or refine new taste
experiences. Take time to tell customers why they are using
quality products ABF poultry, ZTF oils, red tomato, chia and Quinoa seeds, and roasted veggie toppings. As Chef Paul Ladouceur,
SPS-Culinary Services says, <b>“</b>try to add texture to products and discover how
intelligent ingredients are not only trendy, nourishing and taste good, but
they can produce a healthy bottom-line.”.<b>” </b><o:p></o:p></span></div>
</div>
<div style="margin-bottom: .0001pt; margin: 0in;">
<br /></div>
<div style="margin-bottom: .0001pt; margin: 0in; text-align: justify;">
<u><span style="background: white; font-family: Arial;">QSR</span></u><span class="apple-converted-space"><span style="background: white; font-family: Arial;"> </span></span><span style="background: white; font-family: Arial;">(fast food) restaurants will outpace
all segments in increased profits, partly because the Affordable Heath Care Act
forces foodservice organizations to move hourly-workers to 30 hours per week
(leaving them to toil without a health safety net). This unfortunate
situation does offer operators an opportunity to invest this political cash
gift (they don't have to pay insurance) in equipment upgrades and profit producing promotions.</span></div>
<h1>
<span style="color: #e36356; font-family: Arial; font-size: 14.0pt; mso-bidi-font-size: 24.0pt;">Thoughts on Distribution</span><span style="color: #333333; font-family: Tahoma; font-size: 14.0pt; mso-bidi-font-size: 8.5pt;"> </span><span style="color: #e36356; font-family: Arial; font-size: 14.0pt; mso-bidi-font-size: 24.0pt;"><o:p></o:p></span></h1>
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<div style="text-align: left;">
<span style="font-family: Arial;">Not
even the Wall Street Journal knows how Sysco’s purchase (merger) of U.S<strong><u>. Foods</u></strong><span class="apple-converted-space"> </span>will impact the marketplace. Lets just
accept the fact that it's hard to turn the Queen Mary even in calm waters, but they will find a safe harbor, even as they improve their Machiavellian category management program.<o:p></o:p></span></div>
</div>
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<br /></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: Arial;">Look
for the continued growth of regional distributors and groups like, <strong><span style="font-weight: normal;">DMA</span></strong><span class="apple-converted-space"><b> </b></span><strong>and </strong><strong><span style="font-weight: normal;">Uni-Pro</span></strong><span class="apple-converted-space"> </span>(Mug-Group) that are sure to capture market share during the next 18 months. You can also bet that the <u>super-cube</u>
will emerge leaner and more profitable. To the average chain operator differences between distribution services will become even more obvious later in the New Year. <o:p></o:p></span></div>
<h1 align="center" style="text-align: center;">
<span style="color: #e36356; font-family: Arial; font-size: 14.0pt; mso-bidi-font-size: 24.0pt;">Food Trends – Eat
This List</span><span style="font-family: Arial; font-size: 14.0pt; mso-bidi-font-size: 24.0pt;"><o:p></o:p></span></h1>
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<td style="height: 26.7pt; padding: 1.8pt 1.8pt 1.8pt 1.8pt; width: 149.4pt;" valign="top" width="199"><h2>
<span style="font-size: x-small;">PRETZEL EVERYTHING</span></h2>
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<td style="height: 26.7pt; padding: 1.8pt 1.8pt 1.8pt 1.8pt; width: 149.4pt;" valign="top" width="199"><div class="MsoNormal">
<b><span style="color: #e36356; font-size: 11.0pt; mso-bidi-font-size: 9.5pt;">Breads, twists, wraps, nuggets<o:p></o:p></span></b></div>
</td>
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<td style="height: 16.8pt; padding: 1.8pt 1.8pt 1.8pt 1.8pt; width: 149.4pt;" valign="top" width="199"><h2>
<span style="font-size: small;">MIS-MASH</span></h2>
</td>
<td style="height: 16.8pt; padding: 1.8pt 1.8pt 1.8pt 1.8pt; width: 149.4pt;" valign="top" width="199"><div class="MsoNormal">
<b><span style="color: #e36356; font-size: 11.0pt; mso-bidi-font-size: 9.5pt;">Haute Jewish Deli (amped up chicken liver, peppered pastrami; other - Beef potato chips, marshmallows &</span></b><b><span style="color: #e36356; font-size: 9.5pt;"> </span></b><b><span style="color: #e36356; font-size: 11.0pt; mso-bidi-font-size: 9.5pt;">macadamia nuts, Asian-American
comfort food (hand held)</span></b><b><span style="color: #e36356; font-size: 9.5pt;"><o:p></o:p></span></b></div>
</td>
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<td style="height: 16.8pt; padding: 1.8pt 1.8pt 1.8pt 1.8pt; width: 149.4pt;" valign="top" width="199"><h2>
<span style="font-size: small;">The NEW COBB SALAD</span></h2>
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<b><span style="color: #e36356; font-size: 11.0pt; mso-bidi-font-size: 9.5pt;">Trendy ingredients (jerk, ABF chicken, Italian ham, fried
avocados<o:p></o:p></span></b></div>
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<tr style="height: 16.8pt;">
<td style="height: 16.8pt; padding: 1.8pt 1.8pt 1.8pt 1.8pt; width: 149.4pt;" valign="top" width="199"><div class="MsoNormal">
<b><span style="color: #e36356; mso-bidi-font-size: 9.5pt;">More
BROCCOLI<o:p></o:p></span></b></div>
</td>
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<b><span style="color: #e36356; font-size: 11.0pt; mso-bidi-font-size: 9.5pt;">Frittata, broccoli slaw, roasted, as pizza topping, and<o:p></o:p></span></b></div>
<div class="MsoNormal">
<b><span style="color: #e36356; font-size: 11.0pt; mso-bidi-font-size: 9.5pt;">Pizza oven-roasted cauliflower with whipped goat feta<o:p></o:p></span></b></div>
</td>
</tr>
<tr style="height: 16.8pt; mso-yfti-lastrow: yes;">
<td style="height: 16.8pt; padding: 1.8pt 1.8pt 1.8pt 1.8pt; width: 149.4pt;" valign="top" width="199"><h2>
<span style="font-size: small;">TO-GO "car cups"</span></h2>
</td>
<td style="height: 16.8pt; padding: 1.8pt 1.8pt 1.8pt 1.8pt; width: 149.4pt;" valign="top" width="199"><div class="MsoNormal">
<b><span style="color: #e36356; font-size: 11.0pt; mso-bidi-font-size: 9.5pt;">Actually fit cup holders & not just for drive-thru's to
hold finger foods from fried fish to whiskey-butterscotch parfaits<o:p></o:p></span></b></div>
</td>
</tr>
</tbody></table>
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<br /></div>
<div style="margin-bottom: .0001pt; margin: 0in;">
<span style="background: white; color: #333333; font-family: Arial;">Make a New Year's resolution to stay
current with your industry, attend a trade show, improve your product knowledge and remember to share your experiences by
mentoring the next generation of foodservice professionals.</span><span style="font-family: Arial;"><o:p></o:p></span></div>
<div style="margin-bottom: .0001pt; margin: 0in;">
<br /></div>
<div style="margin-bottom: .0001pt; margin: 0in;">
<span style="background: white; color: #333333; font-family: Arial;">To Your Success!</span><span style="font-family: Arial;"><o:p></o:p></span></div>
<div style="margin-bottom: .0001pt; margin: 0in;">
<span style="background: white; color: #333333; font-family: Arial;">Fred</span><span style="font-family: Arial;"><o:p></o:p></span></div>
<div style="margin-bottom: .0001pt; margin: 0in;">
<span style="background: white; color: #333333; font-family: Arial;"><br /></span></div>
<div style="margin-bottom: .0001pt; margin: 0in;">
<br /></div>
<div style="margin-bottom: .0001pt; margin: 0in;">
<i><span style="background-color: white; background-position: initial initial; background-repeat: initial initial; color: #333333; font-family: Arial;">Fred
Favole, is Founder & President of <b>Strategic Purchasing Services</b>
(SPS), America’s most experienced firm specializing in chain purchasing & supply-chain management support. Ask Fred about a solution for your business; P:
912-634-0030 e-mail <a href="mailto:Fred@StrategicPurchasingServices.com" target="_blank">Fred@StrategicPurchasingServices.com</a></span></i><span style="font-family: Arial; font-size: 10.0pt; mso-bidi-font-size: 12.0pt;"><o:p></o:p></span></div>
Fred Favolehttp://www.blogger.com/profile/03660595941545767003noreply@blogger.comtag:blogger.com,1999:blog-2275940921728965579.post-14040958212041962542013-12-07T04:21:00.000-08:002013-12-07T04:21:16.326-08:00Riding Purchasing Off the Rails <div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjpb_vTORpj3vwibYQOdKqiToNm4jSJa-JqG87KWjAe9on6GgwlLHIiuvKLh38o3vTRUWuzPI2PhaveFtP8gNZhZYb4wofjO0Bvm-2LVLi3BV1Jf8dyiaKUrNpV2rmeQ60GgL2YoQfQ0oQI/s1600/multitasking_crazy.jpg" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjpb_vTORpj3vwibYQOdKqiToNm4jSJa-JqG87KWjAe9on6GgwlLHIiuvKLh38o3vTRUWuzPI2PhaveFtP8gNZhZYb4wofjO0Bvm-2LVLi3BV1Jf8dyiaKUrNpV2rmeQ60GgL2YoQfQ0oQI/s1600/multitasking_crazy.jpg" /></a></div>
<b style="text-align: justify;"><span lang="EN">Y</span></b><span lang="EN" style="text-align: justify;">ou would be surprised (unless you get to see as
many procurement departments as I do) just how many companies today are not
able to identify savings opportunities</span><br />
<span lang="EN" style="text-align: justify;"><br /></span>
<br />
<div style="text-align: justify;">
<span lang="EN">Many
of these companies will tell you they know where the cost savings are and they
have vendor “deals” in place, but they don’t really. They roll the dice on
profits by allowing manufacturers and distributors to control the true cost of
goods much like a reverse auction. <o:p></o:p></span></div>
<div style="text-align: justify;">
<span lang="EN"><br /></span></div>
I recently started learning to play the drums, which means that I currently
suck out loud in neighbor-terrorizing fashion. On the way to my lesson today, I
psyched myself up by repeating <strong><span style="font-weight: normal; mso-bidi-font-weight: bold;">the simple trick for learning anything</span>: </strong><em><b>embrace
failure</b></em>.<br />
<br />
We can't be good at something until we've first spent a lot
of time being really bad at it. Why
should foodservice purchasing be different?<br />
<br />
So in the spirit of embracing failure, I am sharing with you how 75 % of the
chains we've consulted with over the past 18 years have mastered the process of
giving money away to their so called <b>“</b>supply-partners<b>”.</b>
<br />
<br />
For many emerging chains, advanced product contracting and spend management control
is out of reach unless they turn to professional outsourcing services. The legendary mistakes made by untrained staff can take years to repair. <br />
<br />
After a few minutes of fumbling, the new Director of Purchasing for a 100
unit chain, just promoted from training director, and
with zero purchasing experience, calls his primary cheese supplier and asks if
there is a contract in place and demands a price decrease. Or the new manager rolls-over past contracts walking past immediate savings opportunities available through forward buying programs.<br />
<span lang="EN"><br /></span>
<br />
<div style="text-align: justify;">
<span lang="EN">Chain executives that hire inexperienced staff
should not be asking why they come up with dry holes again and again in drilling for cost savings. Why? Because they haven't done the due
diligence needed to really understand that chains complete by having high performance procurement management. Many chain organizations do value supply executives. For example, McDonald's has always raised purchasing to a "C-Staff" level of importance, right up there with marketing and operations. </span></div>
<span lang="EN"><br /></span>
I spent a few minutes here working on the premise that experience drives
performance and that if you invest in hiring or retaining a professional to
manage procurement you will be more profitable. <br />
<h3>
Sifting the rubble after the purchasing guy departs</h3>
<div style="text-align: justify;">
It’s easier to blaze a new trail after you've
already been hiking for a while and every time our firm takes over for those smart multi-tasking COO's or Chef's or the guy promoted from training, we are reminded just how much it really costs to be out-of-touch or “cheap”. </div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
At some point you're going to run out of time and money as the competition devours business in your home market or stops your expansion plans. The reason is you don't control the supply-chain, manage markets or have the systems, controls and procedures in place to support
profitable growth. </div>
<br />
<div style="text-align: justify;">
You will find that one of the neat things about taking back your purchasing process from distributors, buying groups, and brokers is how, maybe after
three months, out of nowhere, bam! An
amazing string of savings opportunities will just burst onto your
bottom-line.</div>
<br />
Trying to explain to emerging chain organization executives why they should invest in
professional management can be a lot like trying to put an octopus
to bed. I can always come back to it
later, but for now, I am turning my attention on completing a spend analysis for
restaurant chain that will lead to a $1 million savings next year.<br />
<br />
To Higher Profits! <br />
Fred<br />
<br />
<i><br /></i>
<i>Fred Favole is Founder & President
of <b>Strategic Purchasing Services</b>
(SPS), <st1:country-region w:st="on"><st1:place w:st="on">America</st1:place></st1:country-region>’s
most experience culinary-purchasing firm specializing in department outsourcing
and cost-reduction management. Contact
email: <a href="mailto:fred@strategicpurchasingservices.com">fred@strategicpurchasingservices.com</a>
Office: 912-634-0030<o:p></o:p></i>Fred Favolehttp://www.blogger.com/profile/03660595941545767003noreply@blogger.comtag:blogger.com,1999:blog-2275940921728965579.post-40220488358084100032013-11-09T02:18:00.001-08:002013-11-09T02:18:36.865-08:00Wing Crunch Time <div class="separator" style="clear: both; text-align: center;">
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<strong style="color: #222222; font-family: Arial, Verdana, sans-serif; font-size: 12px;">R</strong><span style="background-color: white; color: #222222; font-family: Arial, Verdana, sans-serif; font-size: 12px;">estaurant chains driven by wing sales should consider switching to a wing portioning program to bring menu profits more in line with acquisition cost. Supply of the highly desirable jumbo cut wing size is limited and pricing is under siege year-round - not just for the Holiday's and the Super-Bowl. The situation will not be getting better anytime soon. </span></div>
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<span style="background-color: white; color: #222222; font-family: Arial, Verdana, sans-serif; font-size: 12px;">We are advising clients to adjust their portioning policy to make wing count size issues less critical. An obvious strategy is to adjust the count range requirement and move to a smaller or larger wing. Some of our favorite joints (they all have WINGS in their name) made this move in 2012). We favor a variation of this approach; instead of serving a set number of pieces, factor the size (wt) of the wings in each portion, more than the wing count. </span></div>
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<span style="background-color: white; color: #222222; font-family: Arial, Verdana, sans-serif; font-size: 12px;">Consider what the a portioning program can bring to your business. Customers instead of ordering with the expectation of receiving a certain number of pieces, will have a choice of ordering by weight; ¼ lb., ½ pound and 1 pound or family & friend platter servings. </span><br />
<span style="background-color: white; color: #222222; font-family: Arial, Verdana, sans-serif; font-size: 12px;"><br /></span>
<span style="background-color: white; color: #222222; font-family: Arial, Verdana, sans-serif; font-size: 12px;">Despite the wing count, the customer gets the </span><strong style="color: #222222; font-family: Arial, Verdana, sans-serif; font-size: 12px;"><u>same volume of meat</u></strong><span style="background-color: white; color: #222222; font-family: Arial, Verdana, sans-serif; font-size: 12px;"><u>,</u> and the new serving policy improves the chances of keeping supplied at somewhat discounted prices. Right now, because of low production and high product demand, it's " <i>Wing </i></span><i><span style="color: #222222; font-family: Arial, Verdana, sans-serif; font-size: 12px;">Crunch Time</span><span style="background-color: white; color: #222222; font-family: Arial, Verdana, sans-serif; font-size: 12px;"> - </span><span style="color: #222222; font-family: Arial, Verdana, sans-serif; font-size: 12px;">All The Time</span></i><span style="background-color: white; color: #222222; font-family: Arial, Verdana, sans-serif; font-size: 12px;">" for fresh small bird cut wings. </span><br />
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<span style="background-color: white; color: #222222; font-family: Arial, Verdana, sans-serif; font-size: 12px;">You already know that no poultry company actually counts the wings they pack in a 40# case. The wing count is 100% determined by the size of the live bird and there aren't many 5-6# birds being grown. Just asking leading poultry companies like; Tyson, Wayne Farms, Pilgrims, Mountaire, Simmons, Perdue, Sanderson, OMP, Koch and Keystone about availability....by the time these nice folks get around to returning your telephone call, you can finish reading Wenzel's "</span><em style="color: #222222; font-family: Arial, Verdana, sans-serif; font-size: 12px;">Menu Maker</em><span style="background-color: white; color: #222222; font-family: Arial, Verdana, sans-serif; font-size: 12px;">".</span></div>
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<span style="background-color: white; color: #222222; font-family: Arial, Verdana, sans-serif; font-size: 12px;">To Higher Profits,</span><br />
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<span style="background-color: white; color: #222222; font-family: Arial, Verdana, sans-serif; font-size: 12px;">Fred</span><br />
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<em><span style="color: #222222; font-family: Arial, Verdana, sans-serif;"><span style="font-size: 12px;">Fred Favole is President of </span></span><strong style="color: #222222; font-family: Arial, Verdana, sans-serif; font-size: 12px;">Strategic Purchasing Services</strong><span style="color: #222222; font-family: Arial, Verdana, sans-serif;"><span style="font-size: 12px;"> (SPS), America's most experienced foodservice purchasing services firm. Services: spend assessments, bid & GPO </span><span style="font-size: 14px;">management</span><span style="font-size: 12px;"> & menu ideation & outsourcing. Contact Info: (912) 634-0030 e-mail: Fred@StrategicPurchasingServices.com </span></span></em></div>
Fred Favolehttp://www.blogger.com/profile/03660595941545767003noreply@blogger.comtag:blogger.com,1999:blog-2275940921728965579.post-80468681522549461682013-09-21T04:12:00.002-07:002013-09-21T04:12:55.493-07:00Hot Trend Wraps R&D, Menu, Purchasing and Profits<h1 style="font-family: Arial, Helvetica, sans-serif; font-size: 24px; line-height: 24px; margin: 0px;">
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<strong style="color: #252525; font-family: Arial, Helvetica, sans-serif; font-size: 13px;">I</strong><span style="color: #252525; font-family: Arial, Helvetica, sans-serif; font-size: 13px;">n the new food service workplace, multi-unit operators are creating lean organizational teams that can react quickly to competitive challenges through a dynamic management process called "culinary-purchasing (CP) ".</span><br />
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<img align="left" alt="" height="144" src="http://www.foodservice.com/profile/fredfavole1/images/Cheff%20Support%20AD%201.jpg" style="border: 0px;" width="210" />Many restaurants outsource technical expertise to develop products and join group group buying organizations to leverage lower product pricing. This new CP structure coordinates the efforts of highly experienced and motivated professionals resulting in new sources of supply, exciting products and higher profits, all delivered with cost effective results.<br />
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This<strong> Chain</strong>-<strong>Link</strong>-<strong>Services</strong> model introduced by Chef Paul Ladouceur and Fred Favole of Strategic Purchasing Services (SPS), combines the talents and expertise of procurement, culinary and supply-chain to deliver successful profitable outcomes. The unity of purpose is achieved by combining individual profession skills which provides food service organizations or manufacturers turning to SPS for client menu ideations with products perfectly matched to menu, kitchen equipment, price points and operational capabilities.</div>
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The CP process when incorporated into the national account chain selling program by manufacturing companies delivers the knockout punch that makes the customers culinary-purchasing process rock!<br />
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When you consider broad line distributors are withdrawing value added services and suppliers are reducing support staff, most companies have more Product Development, Recipe Development, Product Utilization and Menu Ideation projects than they are staffed to handle economically. Now with chain-link services by SPS, all that changes!<br />
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SPS manage and implement the entire program for food service chain, or can assist with the individual steps in the process; from the CP dynamic “ menu ideation ” and spend management (costing & logistics) analysis process through focus groups, staff training and introduction into the restaurant/hotel's distribution network.<br />
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Here’s a sad fact that based on our 18 years transforming decentralized purchasing programs; less than 15% of all food service chains ever achieve the efficiencies of their competition.<br />
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How can things be improved to guarantee that products fit both form and function while still making a profit? <em> “ </em>Culinary-Purchasing is the next logical extension and development trend that will integrated into the business outsourcing process, as older models continue to fail", states Chef Paul Ladouceur, V.P. of Culinary-Purchasing.<br />
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<strong>Lets take a look at 5 traditional ways most chains use to make bottom-line improvements. Then, ask if culinary-purchasing management is what's missing in your process:</strong></div>
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<li style="margin: 0px; padding: 0px;"><span style="font-size: xx-small;">Decreases in Food Cost</span></li>
<li style="margin: 0px; padding: 0px;"><span style="font-size: xx-small;">Change in Sales Mix</span></li>
<li style="margin: 0px; padding: 0px;"><span style="font-size: xx-small;">Increase in the Number of Covers (Customers)</span></li>
<li style="margin: 0px; padding: 0px;"><span style="font-size: xx-small;">Increase in check average (often via price increase)</span></li>
<li style="margin: 0px; padding: 0px;"><span style="font-size: xx-small;">Reduction in Overhead</span></li>
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<span style="color: #252525; font-family: Arial, Helvetica, sans-serif;"><span style="font-size: 13px;">Because of the resource-intensive nature of developing cross-functional teams, the hot new process is to use specialized services companies with motivated procurement and culinary professionals to assure profitable and successful outcomes. By bringing in your extended “<i>team</i>” early on in the menu engineering or sales process, you save development time and the creative process is improved. </span></span></div>
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<span style="color: #252525; font-family: Arial, Helvetica, sans-serif;"><span style="font-size: 13px;"><br />Not only will this help functionality, but it will help lead to more profitable product introductions with fewer cost, operational and profit ” surprises” later on in the process. </span></span><br />
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<span style="color: #252525; font-family: Arial, Helvetica, sans-serif;"><span style="font-size: 13px;">To Higher Profits!</span></span><br />
<span style="color: #252525; font-family: Arial, Helvetica, sans-serif;"><span style="font-size: 13px;">Fred</span></span><br />
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<em style="color: #252525; font-family: Arial, Helvetica, sans-serif; font-size: 13px;">Fred Favole is President of <strong>Strategic Purchasing Services </strong>(SPS), America’s most experienced outsourcing firm and innovator of the dynamic "chain-link services" program. Ask Fred about a solution for your business. Contact: Fred@StrategicPurchasingServices.com Office: 912-634-0030 </em></div>
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<span style="font-family: Arial, Helvetica, sans-serif; font-size: 11px;"><br /></span>Fred Favolehttp://www.blogger.com/profile/03660595941545767003noreply@blogger.comtag:blogger.com,1999:blog-2275940921728965579.post-89260253434109210782013-06-21T08:08:00.000-07:002013-06-21T08:08:13.388-07:00 Compete Using Strategic Sourcing To Achieve Goals<div class="separator" style="clear: both; text-align: center;">
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<b style="font-family: Arial; font-size: 10pt; line-height: 11.4pt;">F</b><span style="font-family: Arial;"><span style="font-size: 10pt; line-height: 11.4pt;">oodservice purchasing experts focus on creating a </span><span style="font-size: 13px; line-height: 15.1875px;">competitive</span><span style="font-size: 10pt; line-height: 11.4pt;"> advantage by sourcing products “</span></span><i style="font-family: Arial; font-size: 10pt; line-height: 11.4pt;">outside
of the box</i><span style="font-family: Arial;"><span style="font-size: 10pt; line-height: 11.4pt;">” typically created by standard supply-chain models. Ask any executive in major chain procurement what
separates their performance from emerging chains, buying groups or distributor buyers and the answer may
surprise you. <o:p></o:p></span></span></div>
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<span style="font-family: Arial;"><span style="font-size: 10pt; line-height: 11.4pt;">Their reply is likely to
place saving money lower on the list. After
all distributors, suppliers and brokers always offer the best </span><span style="font-size: 13px; line-height: 15.1875px;">overall</span><span style="font-size: 10pt; line-height: 11.4pt;"> product solutions for the business, right? On the other hand, we must consider that distributor account representative must maintain company earned income, brokers earn commissions selling products in the distributor' warehouse, staff buyers have limited sourcing and culinary experience,
and GPO's (group purchasing organizations) partner with lead suppliers to earn money and </span><span style="font-size: 10pt; line-height: 11.4pt;">offer members a limited number of brand alternatives. <o:p></o:p></span></span></div>
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<span style="font-family: Arial;"><span style="font-size: 10pt; line-height: 11.4pt;">For foodservice sourcing
to be truly strategic, it must go outside of the supply-box created by these restrictions. A world-class process brings value to the organization in many ways including saving money; the </span><span style="font-size: 13px; line-height: 15.1875px;">foremost</span><span style="font-size: 10pt; line-height: 11.4pt;"> of which is establishing a direct
relationship with suppliers that are committed and capable of
contributing to profitable growth.
<o:p></o:p></span></span></div>
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<span style="font-family: Arial; font-size: 10pt;"><b><span style="background-color: white;"><u>Here are 5 strategic sourcing goals used by SPS in managing chain
purchasing and providing chef services:</u></span></b><br />
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<b>Goal #1: To reduce risk.<span class="apple-converted-space"> </span></b>The
brave new foodservice world requires that buyers understand how to compete in
the international marketplace for proteins and grains once available and
affordable in the U.S.A. <o:p></o:p></span></div>
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<span style="font-family: Arial;"><span style="font-size: 10pt; line-height: 11.4pt;">Building your menu based on being able to </span><span style="font-size: 13px; line-height: 15.1875px;">consistently</span><span style="font-size: 10pt; line-height: 11.4pt;"> buy certain imported seafood species and beef sub-</span><span style="font-size: 13px; line-height: 15.1875px;">primal cuts</span><span style="font-size: 10pt; line-height: 11.4pt;"> or chicken wings at affordable prices can be risky business. Strategic sourcing enables your company to
sustain a continuity of supply, quality and price, even in the face of the unexpected markets and supply disruptions. </span></span><br />
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<b style="font-family: Arial; font-size: 10pt; line-height: 11.4pt;">Goal #2: To improve supplier performance.<span class="apple-converted-space"> </span></b><span style="font-family: Arial;"><span style="font-size: 10pt; line-height: 11.4pt;">Reducing
the delivered to distributor unit price on your order guide is nice, but
meaningless if you don’t hold suppliers to formal product, specifications, and distributors to on-time and complete deliveries. Not
to mention quality defects or changes in product yield that affect your business.. Strategic sourcing is
only truly successful when you can achieve a true cost reduction and improve
distributor and supplier performance.</span></span><span class="apple-converted-space" style="font-family: Arial; font-size: 10pt; line-height: 11.4pt;"> </span><br />
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<b><span style="font-family: Arial; font-size: 10pt;">Goal #3: To drive
profits to the bottom-line. </span></b><span style="font-family: Arial; font-size: 10pt;"> Managing
cost by controlling the landed cost of goods to your distributor the first step
in the process. Transition from distributor or GPO controlled
center-of-the-plate purchases and you can avoid the projected 3.5% food price
increases through the end of the year.
Then, hire a professional to contract directly with strategically selected
suppliers; then maintain high-performance standards by levering total purchases
and managing future commodity costs.<o:p></o:p></span></div>
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<b>Goal #4: To bring in innovations from the food supplier base.<span class="apple-converted-space"> </span></b>In today's competitive restaurant
and hotel business you need a constant flow of new
sources of supply and options to release the full capabilities of your culinary and purchasing team. Suppliers can be a great resource only if you are selecting qualified partners world-wide from “outside”
the box build by many links in your supply-chain. Start to recover your potential through sourcing and watch your
Culinary-Purchasing team ROCK.</span></div>
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<b>Goal #5: To support the organization's social responsibility goals.</b>
Today’s operators must support green, healthy, diversity and other social
responsibilities; these principles can be incorporated in your strategic
sourcing plan and services like SPS can help move your organization towards
those goals. <br />
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Discover the principles of the strategic purchasing process and start seeing
immediate benefits. Empower your organization to exceed expectations by out-SOURCING and out-SELLING the competition. </span></div>
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<i><span style="font-family: Arial; font-size: 10pt;"><b>To Higher Profits!</b></span><b style="font-family: Arial; font-size: 10pt; line-height: 11.4pt;"> Fred </b><span style="font-family: Arial; font-size: 10pt; line-height: 11.4pt;"> </span></i></div>
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<i style="font-family: Arial; font-size: 13px;">Fred Favole is President of <u>Strategic Purchasing Services</u> (SPS) and Founder, <u>Chef Support Services</u>, </i><span style="font-family: Arial; font-size: 13px;"><i>a foodservice consulting firm specializing in outsourcing, culinary support, and spend management services. </i></span><i style="background-color: transparent; font-family: Arial; font-size: 13px;">Fred at (912) 634-0030, email: Fred@Strategic Purchasing Services.com </i></div>
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Fred Favolehttp://www.blogger.com/profile/03660595941545767003noreply@blogger.comtag:blogger.com,1999:blog-2275940921728965579.post-76550752155112273952013-06-11T06:40:00.000-07:002013-06-11T06:40:14.634-07:00Strategic Sourcing Makes Menu Making Easier<br />
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<i><span style="color: #666666; font-family: Arial; font-size: 15.0pt;">How many times do you wish you had extra professional staff?</span></i><span style="color: #666666; font-family: Arial; font-size: 15.0pt;"><o:p></o:p></span></h4>
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<span style="color: #993300; font-family: Arial; font-size: 15.0pt;">Chef Support</span><span style="color: #666666; font-family: Arial; font-size: 15.0pt; font-weight: normal;"> is a unique program offered by
America’s most experienced purchasing firm to address the product challenges
faced by corporate chefs and menu professionals. <o:p></o:p></span></h4>
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<span style="color: #666666; font-family: Arial; font-size: 15.0pt; font-weight: normal;">Our service provides real-time access to
sourcing experts that use decades of foodservice experience to locate the exact product you need, while handling logistics from farm (or plant) to table.</span></h4>
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<span style="color: #666666; font-family: Arial;"><span style="font-size: 14pt; font-weight: normal;">Quickly locate a winning L.T.O. item, replace high cost protein suppliers, expand your CORE items bid list, select #1 product overstocks, or simply </span><span style="font-size: 19px; font-weight: normal;">discover</span><span style="font-size: 14pt; font-weight: normal;"> your next great supplier.<o:p></o:p></span></span></h4>
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<span style="color: #666666; font-family: Arial; font-size: 14.0pt; font-weight: normal; mso-bidi-font-size: 15.0pt;">Together, working with Chef
Support Services (CSS) you will quickly transform the sourcing process into a
flexible, powerful and profitable culinary resource. When you select products </span><span style="color: #666666; font-family: Arial; font-size: 14.0pt; mso-bidi-font-size: 15.0pt;">“</span><i><span style="color: #666666; font-family: Arial; font-size: 14.0pt; font-weight: normal; mso-bidi-font-size: 15.0pt;">outside-of-the-supply-box</span></i><span style="color: #666666; font-family: Arial; font-size: 14.0pt; mso-bidi-font-size: 15.0pt;">”</span><span style="color: #666666; font-family: Arial;"><span style="font-size: 14pt; font-weight: normal;"> without the </span><span style="font-size: 19px; font-weight: normal;">boundaries</span><span style="font-size: 14pt; font-weight: normal;"> imposed by distributors, GPO's, brokers, buyers or sales representatives, you unleash the true potential of
your talent and menu. </span></span></h4>
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<i><span style="color: #2a295c; font-family: Arial; font-size: 14pt;">Menu Making Made Easier w/ No-Out-Of Pocket Expense. <span style="font-weight: normal;"><o:p></o:p></span></span></i></h4>
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<i><span style="color: #2a295c; font-family: Arial; font-size: 14.0pt; font-weight: normal; mso-bidi-font-size: 10.0pt;">Contact us to see how we </span><span style="color: #2a295c; font-family: Arial; font-size: 14.0pt; font-weight: normal; mso-bidi-font-size: 10.0pt;">can help you!<o:p></o:p></span></i></h4>
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<i><span style="color: #2a295c; font-family: Arial; font-size: 14pt; font-weight: normal;">Office</span><span style="color: #2a295c; font-family: Arial; font-size: 14.0pt; font-weight: normal; mso-bidi-font-size: 10.0pt;">: 912-634-0030<o:p></o:p></span></i></h4>
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<i><span style="color: #2a295c; font-family: Arial; font-size: 14.0pt; font-weight: normal; mso-bidi-font-size: 10.0pt;">Fax: 912-634-0031<o:p></o:p></span></i></h4>
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<i><span style="color: #2a295c; font-family: Arial; font-size: 14.0pt; font-weight: normal; mso-bidi-font-size: 10.0pt;">Email:
info@strategicpurchasingservices.com </span></i><span style="color: #444444; font-family: Calibri; font-size: 9.0pt;"><o:p></o:p></span></h4>
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<span style="color: #2a295c; font-family: Arial;"><span style="font-size: 19px;"><i>Fred Favole, CPO (912) 399-1427</i></span></span></div>
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<span style="color: #2a295c; font-family: Arial;"><span style="font-size: 19px;"><i>Dan Patterson, VP Services (678) 315-2389</i></span></span></div>
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<span style="color: #2a295c; font-family: Arial;"><span style="font-size: 19px;"><i>Catherine Gruber , Manager (912) 623-0030</i></span></span></div>
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Fred Favolehttp://www.blogger.com/profile/03660595941545767003noreply@blogger.comtag:blogger.com,1999:blog-2275940921728965579.post-79937685277890896762013-05-24T12:34:00.000-07:002013-05-24T12:34:49.720-07:00Wine Selection Tips From The Foodservice Golden Age<div class="separator" style="clear: both; text-align: center;">
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<strong style="color: #222222; font-family: Arial, Verdana, sans-serif; font-size: 12px;">O</strong><span style="background-color: white; color: #222222; font-family: Arial, Verdana, sans-serif; font-size: 12px;">nly in the last few years have I started to appreciate what the legend of Creighton Churchill (</span><strong style="color: #222222; font-family: Arial, Verdana, sans-serif; font-size: 12px;"> "</strong><span style="background-color: white; color: #222222; font-family: Arial, Verdana, sans-serif; font-size: 12px;">The World of Wines </span><strong style="color: #222222; font-family: Arial, Verdana, sans-serif; font-size: 12px;">"</strong><span style="background-color: white; color: #222222; font-family: Arial, Verdana, sans-serif; font-size: 12px;"> & </span><strong style="color: #222222; font-family: Arial, Verdana, sans-serif; font-size: 12px;"> "</strong><span style="background-color: white; color: #222222; font-family: Arial, Verdana, sans-serif; font-size: 12px;"> A Notebook For the Wines of France</span><strong style="color: #222222; font-family: Arial, Verdana, sans-serif; font-size: 12px;">"</strong><span style="background-color: white; color: #222222; font-family: Arial, Verdana, sans-serif; font-size: 12px;"> ) has meant to the foodservice industry. He is a forgotten pioneer in the art of wine selection and promotion. </span><br style="color: #222222; font-family: Arial, Verdana, sans-serif; font-size: 12px;" /><br style="color: #222222; font-family: Arial, Verdana, sans-serif; font-size: 12px;" /><span style="background-color: white; color: #222222; font-family: Arial, Verdana, sans-serif; font-size: 12px;">During my brief encounters with Creighton in the mid-1970's, during the heyday of the airline industry (Jumbo 747s, piano bars, 1st class wine tasting, carved roast beef, King crab and wonderful deadhead flights from JFK to Paris or Puerto Rico ). We were both always high; I worked for American Airlines and was sky-high, and he was high on life and wine. Creighton was on a mission to bring quality wine to the masses in a New York elitist sort of way, and I was a rookie F&B purchasing agent with a $115 million budget. </span><br style="color: #222222; font-family: Arial, Verdana, sans-serif; font-size: 12px;" /><br style="color: #222222; font-family: Arial, Verdana, sans-serif; font-size: 12px;" /><span style="background-color: white; color: #222222; font-family: Arial, Verdana, sans-serif; font-size: 12px;">Experience teaches us that potholes, or in my case “air-pockets” are to be avoided when buying and selling alcoholic beverages. While this blog is not a story about drinking causalities, before suggesting to you how to select a wine for your table or business, it would be best if you would draw a glass of your favorite port or chardonnay, as I share a few tips and quips. </span><br />
<ol style="color: #222222; font-family: Arial, Verdana, sans-serif; font-size: 12px;">
<li>Foodservice purchasing agents should not buy everything they sample.</li>
<li>Never play golf for money with a liquor salesmen</li>
<li>Deny that you have an extra set of keys to the liquor storeroom</li>
<li>Do subscribe to <em>Food & Wine Magazine</em> and <em>The Wine Spectator</em></li>
<li>Attend the <strong>“</strong> Pune Wine Tasting Festival <strong>”</strong> at least once in your life.</li>
<li>Read <strong>"</strong>The Noble Grape<strong>"</strong>, by Andre L. Simone, before your visa to India expires or they outsource your job. </li>
<li>Surprise your employees with a Hydrometer test (for alcohol contents)</li>
<li>Never buy anything but quality brands of liquors and wines (regardless of the price or free trip to Las Vegas)</li>
<li>Respect liquor controls from the Feds down through the state, county, police, health department and especially your wife.</li>
</ol>
<span style="background-color: white; color: #222222; font-family: Arial, Verdana, sans-serif; font-size: 12px;">I have always respected hotel and retail F&B executives like Don Stanczak (Interstate Hotels & Resorts) and Kevin Garvin (Neiman Marcus). Our consulting firm has been blessed having had a business relationship with both. Their leadership and buying savvy regarding the selection of fine wines and spirits leaves a lasting impression. </span><br style="color: #222222; font-family: Arial, Verdana, sans-serif; font-size: 12px;" /><br style="color: #222222; font-family: Arial, Verdana, sans-serif; font-size: 12px;" /><span style="background-color: white; color: #222222; font-family: Arial, Verdana, sans-serif; font-size: 12px;">Just like my first mentor, Creighton, both Kevin and Don used to say that they could tell their managers or Chefs</span><strong style="color: #222222; font-family: Arial, Verdana, sans-serif; font-size: 12px;"> “</strong><span style="background-color: white; color: #222222; font-family: Arial, Verdana, sans-serif; font-size: 12px;">how to buy liquor and wine in five minutes – but teaching them what to buy would take five years</span><strong style="color: #222222; font-family: Arial, Verdana, sans-serif; font-size: 12px;">.”</strong><br style="color: #222222; font-family: Arial, Verdana, sans-serif; font-size: 12px;" /><br style="color: #222222; font-family: Arial, Verdana, sans-serif; font-size: 12px;" /><span style="background-color: white; color: #222222; font-family: Arial, Verdana, sans-serif; font-size: 12px;">The art of tasting, however, can be leaned more quickly than selection, and this can be a very enjoyable process, especially when wine is perfectly matched with great cuisine. </span><br />
<br style="color: #222222; font-family: Arial, Verdana, sans-serif; font-size: 12px;" /><strong style="color: #222222; font-family: Arial, Verdana, sans-serif; font-size: 12px;">Here are the basics of wine tasting:</strong><span style="background-color: white; color: #222222; font-family: Arial, Verdana, sans-serif; font-size: 12px;"> </span><br />
<ul style="color: #222222; font-family: Arial, Verdana, sans-serif; font-size: 12px;">
<li>Look (bright, clear, free of sediment, color),</li>
<li>Smell (bouquet, aroma, identify grape, nuttiness),</li>
<li>Taste (dry, sweet, fortified, “pluckiness” or tannin )</li>
</ul>
<span style="background-color: white; color: #222222; font-family: Arial, Verdana, sans-serif; font-size: 12px;">If you are new to wine selection and spirits purchasing, take a few years to watch and listen to the experts, learn how to spit professionally and try not to fall down along the journey.</span><br style="color: #222222; font-family: Arial, Verdana, sans-serif; font-size: 12px;" /><br style="color: #222222; font-family: Arial, Verdana, sans-serif; font-size: 12px;" /><span style="background-color: white; color: #222222; font-family: Arial, Verdana, sans-serif; font-size: 12px;">To Higher Profits,</span><br style="color: #222222; font-family: Arial, Verdana, sans-serif; font-size: 12px;" /><span style="background-color: white; color: #222222; font-family: Arial, Verdana, sans-serif; font-size: 12px;">Fred</span><br style="color: #222222; font-family: Arial, Verdana, sans-serif; font-size: 12px;" /><br style="color: #222222; font-family: Arial, Verdana, sans-serif; font-size: 12px;" /><em style="color: #222222; font-family: Arial, Verdana, sans-serif; font-size: 12px;">Fred Favole is President of <strong>Strategic Purchasing Services</strong> (SPS), America's most experienced purchasing firm specializing in outsourcing, and cost reduction services. Contact Information: p: 912-634-0030, email: Fred@ StrategicPurchasingServices.com</em>Fred Favolehttp://www.blogger.com/profile/03660595941545767003noreply@blogger.comtag:blogger.com,1999:blog-2275940921728965579.post-79436119204102661492013-05-14T04:17:00.000-07:002013-05-15T08:36:13.892-07:00Foodservice Purchasing Best Practices, 2<br />
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<span style="font-family: Calibri;"><b>T</b>here is no doubt in my mind that thinking about MONEY first in purchasing staffing and product decisions is dangerous to the bottom-line health of your foodservice organization. Any CEO today needs to call on an armory of resources to remain competitive and risk free; and, there must be a basis of knowledge and thinking <b>"</b><i>outside the box</i><b>"</b> to achieve measurable savings results. </span></div>
<span style="font-family: Calibri;"><br /></span>
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<span style="font-family: Calibri;">Secondly, there is a dimension of foodservice purchasing that directly links to profitability that is less measurable, but known to top professionals as the difference between acceptable and exceptional spend performance. My firm meets chain clients where they are and proceeds from there to build stakeholder value to achieve the best financial outcome over time. </span><br />
<span style="font-family: Calibri;"> </span></div>
<span style="font-family: Calibri;">Here is my quick list for getting started:</span><br />
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<span style="font-family: Calibri;"><u><span style="font-size: 18pt; mso-ascii-font-family: Calibri; mso-bidi-font-family: Calibri; mso-fareast-font-family: Calibri; mso-hansi-font-family: Calibri;">High-Performance Foodservice Best Practices</span></u></span></div>
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<li><span style="font-family: Calibri;">D</span><span style="font-family: Calibri; letter-spacing: 0.05pt;">evelop</span><span style="font-family: Calibri; letter-spacing: 1.3pt;"> </span><span style="font-family: Calibri;">a</span><span style="font-family: Calibri; letter-spacing: 1.35pt;"> </span><u style="font-family: Calibri;">S<span style="letter-spacing: -0.15pt;">u</span>pp<span style="letter-spacing: 0.05pt;">l</span>y</u><span style="font-family: Calibri; letter-spacing: 1.2pt;"> </span><u style="font-family: Calibri;"><span style="letter-spacing: -0.1pt;">C</span>h<span style="letter-spacing: 0.05pt;">a</span><span style="letter-spacing: -0.1pt;">i</span>n</u><span style="font-family: Calibri; letter-spacing: 1.35pt;"> <u>Pur</u></span><u style="font-family: Calibri;"><span style="letter-spacing: -0.1pt;">c</span>h<span style="letter-spacing: 0.05pt;">a</span><span style="letter-spacing: -0.1pt;">s</span>i<span style="letter-spacing: 0.05pt;">n</span>g</u><span style="font-family: Calibri; letter-spacing: 1.3pt;"> s</span><span style="font-family: Calibri;">t</span><span style="font-family: Calibri; letter-spacing: -0.05pt;">r</span><span style="font-family: Calibri; letter-spacing: -0.1pt;">a</span><span style="font-family: Calibri; letter-spacing: 0.05pt;">tegy</span><span style="font-family: Calibri; letter-spacing: 1.15pt;"> </span><span style="font-family: Calibri;">in</span><span style="font-family: Calibri; letter-spacing: 1.4pt;"> </span><span style="font-family: Calibri;">a</span><span style="font-family: Calibri; letter-spacing: 0.05pt;">lign</span><span style="font-family: Calibri; letter-spacing: -0.15pt;">m</span><span style="font-family: Calibri;">e</span><span style="font-family: Calibri; letter-spacing: -0.1pt;">n</span><span style="font-family: Calibri;">t</span><span style="font-family: Calibri; letter-spacing: 1.3pt;"> </span><span style="font-family: Calibri;">w</span><span style="font-family: Calibri; letter-spacing: -0.1pt;">i</span><span style="font-family: Calibri; letter-spacing: 0.05pt;">t</span><span style="font-family: Calibri;">h </span><span style="font-family: Calibri; letter-spacing: 0.05pt;">t</span><span style="font-family: Calibri;">he </span><span style="font-family: Calibri; letter-spacing: -0.1pt;">o</span><span style="font-family: Calibri; letter-spacing: 0.05pt;">r</span><span style="font-family: Calibri; letter-spacing: -0.05pt;">g</span><span style="font-family: Calibri;">a</span><span style="font-family: Calibri; letter-spacing: 0.05pt;">n</span><span style="font-family: Calibri; letter-spacing: -0.1pt;">i</span><span style="font-family: Calibri; letter-spacing: 0.05pt;">z</span><span style="font-family: Calibri; letter-spacing: -0.1pt;">a</span><span style="font-family: Calibri; letter-spacing: 0.05pt;">t</span><span style="font-family: Calibri; letter-spacing: -0.1pt;">ions' </span><span style="font-family: Calibri;">m</span><span style="font-family: Calibri; letter-spacing: -0.1pt;">e</span><span style="font-family: Calibri;">nu, growth plans a</span><span style="font-family: Calibri; letter-spacing: -0.1pt;">n</span><span style="font-family: Calibri;">d p</span><span style="font-family: Calibri; letter-spacing: -0.05pt;">rofitability goals. </span></li>
<li><span style="font-family: Calibri; letter-spacing: -0.05pt;">Focus on the ability to connect product specifications, menu item with equipment and ideal price points. Shift your thinking from linear ( that's the Chef's job, the owner said so or the buyer makes the decision) to supply network partnerships.</span></li>
<li><span style="font-family: Calibri; letter-spacing: 0.05pt; text-align: justify;">Simplify</span><span style="font-family: Calibri; letter-spacing: -0.1pt; text-align: justify;"> p</span><span style="font-family: Calibri; letter-spacing: 0.05pt; text-align: justify;">roc</span><span style="font-family: Calibri; letter-spacing: -0.1pt; text-align: justify;">e</span><span style="font-family: Calibri; text-align: justify;">s</span><span style="font-family: Calibri; letter-spacing: -0.05pt; text-align: justify;">s</span><span style="font-family: Calibri; text-align: justify;">e</span><span style="font-family: Calibri; letter-spacing: 0.05pt; text-align: justify;">s</span><span style="font-family: Calibri; text-align: justify;">,</span><span style="font-family: Calibri; letter-spacing: -0.05pt; text-align: justify;"> </span><span style="font-family: Calibri; letter-spacing: -0.1pt; text-align: justify;">c</span><span style="font-family: Calibri; text-align: justify;">on</span><span style="font-family: Calibri; letter-spacing: -0.05pt; text-align: justify;">t</span><span style="font-family: Calibri; letter-spacing: 0.05pt; text-align: justify;">r</span><span style="font-family: Calibri; text-align: justify;">o</span><span style="font-family: Calibri; letter-spacing: -0.05pt; text-align: justify;">l</span><span style="font-family: Calibri; text-align: justify;">s, a</span><span style="font-family: Calibri; letter-spacing: -0.1pt; text-align: justify;">n</span><span style="font-family: Calibri; text-align: justify;">d</span><span style="font-family: Calibri; letter-spacing: 0.05pt; text-align: justify;"> </span><span style="font-family: Calibri; text-align: justify;">p</span><span style="font-family: Calibri; letter-spacing: 0.05pt; text-align: justify;">r</span><span style="font-family: Calibri; letter-spacing: -0.1pt; text-align: justify;">ocedu</span><span style="font-family: Calibri; letter-spacing: 0.05pt; text-align: justify;">r</span><span style="font-family: Calibri; text-align: justify;">es</span><span style="font-family: Calibri; letter-spacing: 0.05pt; text-align: justify;"> </span><span style="font-family: Calibri; text-align: justify;">-</span><span style="font-family: Calibri; letter-spacing: 3.1pt; text-align: justify;"> </span><span style="font-family: Calibri; text-align: justify;">me</span><span style="font-family: Calibri; letter-spacing: -0.1pt; text-align: justify;">a</span><span style="font-family: Calibri; text-align: justify;">s</span><span style="font-family: Calibri; letter-spacing: -0.05pt; text-align: justify;">u</span><span style="font-family: Calibri; letter-spacing: 0.05pt; text-align: justify;">r</span><span style="font-family: Calibri; text-align: justify;">e t</span><span style="font-family: Calibri; letter-spacing: -0.05pt; text-align: justify;">h</span><span style="font-family: Calibri; text-align: justify;">e r</span><span style="font-family: Calibri; letter-spacing: -0.1pt; text-align: justify;">e</span><span style="font-family: Calibri; text-align: justify;">s</span><span style="font-family: Calibri; letter-spacing: 0.05pt; text-align: justify;">u</span><span style="font-family: Calibri; letter-spacing: -0.1pt; text-align: justify;">l</span><span style="font-family: Calibri; letter-spacing: 0.05pt; text-align: justify;">t</span><span style="font-family: Calibri; text-align: justify;">s</span></li>
<li><span style="font-family: Calibri;">Instill<span style="letter-spacing: 0.05pt;"> </span>T<span style="letter-spacing: -0.1pt;">o</span><span style="letter-spacing: 0.05pt;">t</span><span style="letter-spacing: -0.1pt;">a</span>l Co<span style="letter-spacing: -0.05pt;">s</span>t of<span style="letter-spacing: -0.05pt;"> </span><span style="letter-spacing: -0.15pt;">Owners</span><span style="letter-spacing: 0.05pt;">h</span><span style="letter-spacing: -0.1pt;">i</span>p<span style="letter-spacing: 3.1pt;"> </span>min<span style="letter-spacing: -0.05pt;">d</span>s<span style="letter-spacing: -0.1pt;">e</span>t <span style="letter-spacing: -0.1pt;">and</span> me<span style="letter-spacing: -0.1pt;">t</span><span style="letter-spacing: 0.05pt;">r</span>i<span style="letter-spacing: -0.1pt;">c</span>s<span style="letter-spacing: 0.05pt;"> </span>f<span style="letter-spacing: 0.05pt;">r</span>om<span style="letter-spacing: -0.05pt;"> </span><span style="letter-spacing: -0.1pt;">Chef</span><span style="letter-spacing: -0.15pt;"> </span><span style="letter-spacing: 0.05pt;">t</span>o Purc<span style="letter-spacing: -0.1pt;">h</span>a<span style="letter-spacing: -0.05pt;">s</span>i<span style="letter-spacing: 0.05pt;">n</span>g and Op<span style="letter-spacing: -0.1pt;">e</span><span style="letter-spacing: 0.05pt;">r</span><span style="letter-spacing: -0.1pt;">a</span><span style="letter-spacing: 0.05pt;">t</span>i<span style="letter-spacing: -0.05pt;">ons</span>; maintain shareholder value.</span><span style="font-size: 9.5pt;"><o:p><span style="font-family: Calibri;"> </span></o:p></span></li>
<li><span style="font-family: Calibri;">Es</span><span style="font-family: Calibri; letter-spacing: 0.05pt;">t</span><span style="font-family: Calibri; letter-spacing: -0.1pt;">a</span><span style="font-family: Calibri;">b</span><span style="font-family: Calibri; letter-spacing: -0.05pt;">l</span><span style="font-family: Calibri;">i</span><span style="font-family: Calibri; letter-spacing: 0.05pt;">s</span><span style="font-family: Calibri;">h </span><span style="font-family: Calibri; letter-spacing: -0.05pt;">key</span><span style="font-family: Calibri; letter-spacing: -0.1pt;"> Su</span><span style="font-family: Calibri; letter-spacing: -0.05pt;">p</span><span style="font-family: Calibri;">p</span><span style="font-family: Calibri; letter-spacing: 0.05pt;">lie</span><span style="font-family: Calibri; letter-spacing: 0.1pt;">r</span><span style="font-family: Calibri;">s, wh</span><span style="font-family: Calibri; letter-spacing: -0.1pt;">ile</span><span style="font-family: Calibri;"> I</span><span style="font-family: Calibri; letter-spacing: -0.05pt;">m</span><span style="font-family: Calibri; letter-spacing: -0.1pt;">p</span><span style="font-family: Calibri; letter-spacing: 0.05pt;">rovi</span><span style="font-family: Calibri; letter-spacing: 0.05pt;">n</span><span style="font-family: Calibri;">g</span><span style="font-family: Calibri; letter-spacing: -0.1pt;"> </span><span style="font-family: Calibri;">S</span><span style="font-family: Calibri; letter-spacing: -0.1pt;">t</span><span style="font-family: Calibri; letter-spacing: 0.05pt;">r</span><span style="font-family: Calibri;">a</span><span style="font-family: Calibri; letter-spacing: -0.05pt;">tegic</span><span style="font-family: Calibri; letter-spacing: -0.05pt;"> </span><span style="font-family: Calibri;">So</span><span style="font-family: Calibri; letter-spacing: -0.1pt;">u</span><span style="font-family: Calibri; letter-spacing: 0.05pt;">r</span><span style="font-family: Calibri;">cing (beyond regional and distributor financial "walls". </span></li>
<li><span style="font-family: Calibri;">F</span><span style="font-family: Calibri; letter-spacing: 0.05pt;">o</span><span style="font-family: Calibri;">c</span><span style="font-family: Calibri; letter-spacing: -0.1pt;">u</span><span style="font-family: Calibri;">s on s</span><span style="font-family: Calibri; letter-spacing: -0.05pt;">p</span><span style="font-family: Calibri;">e</span><span style="font-family: Calibri; letter-spacing: -0.1pt;">n</span><span style="font-family: Calibri;">d ma</span><span style="font-family: Calibri; letter-spacing: -0.1pt;">nageme</span><span style="font-family: Calibri; letter-spacing: -0.1pt;">n</span><span style="font-family: Calibri; letter-spacing: 0.1pt;">t</span><span style="font-family: Calibri;">:</span><span style="font-family: Calibri; letter-spacing: 3.05pt;"> vis</span><span style="font-family: Calibri; letter-spacing: 0.05pt;">i</span><span style="font-family: Calibri;">b</span><span style="font-family: Calibri; letter-spacing: -0.05pt;">i</span><span style="font-family: Calibri;">l</span><span style="font-family: Calibri; letter-spacing: -0.05pt;">i</span><span style="font-family: Calibri; letter-spacing: 0.05pt;">t</span><span style="font-family: Calibri; letter-spacing: -0.05pt;">y</span><span style="font-family: Calibri;">,</span><span style="font-family: Calibri; letter-spacing: -0.05pt;"> </span><span style="font-family: Calibri;">s</span><span style="font-family: Calibri; letter-spacing: 0.05pt;">peed</span><span style="font-family: Calibri; letter-spacing: 0.05pt;"> </span><span style="font-family: Calibri;">of</span><span style="font-family: Calibri; letter-spacing: -0.05pt;"> </span><span style="font-family: Calibri;">c</span><span style="font-family: Calibri; letter-spacing: -0.1pt;">h</span><span style="font-family: Calibri;">a</span><span style="font-family: Calibri; letter-spacing: 0.05pt;">n</span><span style="font-family: Calibri; letter-spacing: -0.05pt;">g</span><span style="font-family: Calibri;">e </span><span style="font-family: Calibri; letter-spacing: -0.1pt;">and</span><span style="font-family: Calibri; letter-spacing: 3.1pt;"> acc</span><span style="font-family: Calibri; letter-spacing: -0.1pt;">u</span><span style="font-family: Calibri; letter-spacing: 0.05pt;">racy</span><span style="font-family: Calibri;"> of p</span><span style="font-family: Calibri; letter-spacing: 0.05pt;">r</span><span style="font-family: Calibri;">i</span><span style="font-family: Calibri; letter-spacing: -0.1pt;">c</span><span style="font-family: Calibri;">i</span><span style="font-family: Calibri; letter-spacing: 0.05pt;">n</span><span style="font-family: Calibri;">g</span><span style="font-family: Calibri; letter-spacing: 3.05pt;"> </span><span style="font-family: Calibri;">–</span><span style="font-family: Calibri; letter-spacing: 3.05pt;"> </span><span style="font-family: Calibri;">i</span><span style="font-family: Calibri; letter-spacing: 0.05pt;">n</span><span style="font-family: Calibri;">vest</span><span style="font-family: Calibri; letter-spacing: 0.05pt;"> </span><span style="font-family: Calibri;">in</span><span style="font-family: Calibri; letter-spacing: -0.1pt;"> r</span><span style="font-family: Calibri;">e</span><span style="font-family: Calibri; letter-spacing: 0.05pt;">s</span><span style="font-family: Calibri;">o</span><span style="font-family: Calibri; letter-spacing: -0.1pt;">u</span><span style="font-family: Calibri; letter-spacing: 0.05pt;">r</span><span style="font-family: Calibri;">c</span><span style="font-family: Calibri; letter-spacing: -0.1pt;">e. </span></li>
<li><span style="font-family: Calibri;">Co</span><span style="font-family: Calibri; letter-spacing: -0.05pt;">r</span><span style="font-family: Calibri; letter-spacing: 0.05pt;">r</span><span style="font-family: Calibri;">e</span><span style="font-family: Calibri; letter-spacing: -0.1pt;">c</span><span style="font-family: Calibri; letter-spacing: 0.05pt;">tly</span><span style="font-family: Calibri; letter-spacing: -0.05pt;"> </span><span style="font-family: Calibri;">o</span><span style="font-family: Calibri; letter-spacing: 0.05pt;">r</span><span style="font-family: Calibri; letter-spacing: -0.05pt;">g</span><span style="font-family: Calibri; letter-spacing: -0.1pt;">a</span><span style="font-family: Calibri;">n</span><span style="font-family: Calibri; letter-spacing: -0.05pt;">i</span><span style="font-family: Calibri; letter-spacing: 0.05pt;">z</span><span style="font-family: Calibri;">e t</span><span style="font-family: Calibri; letter-spacing: -0.05pt;">h</span><span style="font-family: Calibri;">e su</span><span style="font-family: Calibri; letter-spacing: -0.05pt;">p</span><span style="font-family: Calibri;">p</span><span style="font-family: Calibri; letter-spacing: 0.05pt;">l</span><span style="font-family: Calibri;">y</span><span style="font-family: Calibri; letter-spacing: -0.1pt;"> </span><span style="font-family: Calibri;">ch</span><span style="font-family: Calibri; letter-spacing: -0.05pt;">a</span><span style="font-family: Calibri;">in fu</span><span style="font-family: Calibri; letter-spacing: -0.05pt;">n</span><span style="font-family: Calibri;">c</span><span style="font-family: Calibri; letter-spacing: 0.05pt;">t</span><span style="font-family: Calibri; letter-spacing: -0.1pt;">i</span><span style="font-family: Calibri;">on and</span><span style="font-family: Calibri; letter-spacing: -0.1pt;"> </span><span style="font-family: Calibri; letter-spacing: 0.05pt;">r</span><span style="font-family: Calibri;">e</span><span style="font-family: Calibri; letter-spacing: -0.1pt;">c</span><span style="font-family: Calibri; letter-spacing: 0.05pt;">r</span><span style="font-family: Calibri;">u</span><span style="font-family: Calibri; letter-spacing: -0.05pt;">i</span><span style="font-family: Calibri;">t p</span><span style="font-family: Calibri; letter-spacing: -0.05pt;">rofe</span><span style="font-family: Calibri; letter-spacing: -0.05pt;">s</span><span style="font-family: Calibri;">s</span><span style="font-family: Calibri; letter-spacing: 0.05pt;">i</span><span style="font-family: Calibri;">o</span><span style="font-family: Calibri; letter-spacing: -0.1pt;">n</span><span style="font-family: Calibri;">a</span><span style="font-family: Calibri; letter-spacing: -0.05pt;">l</span><span style="font-family: Calibri;">s wi</span><span style="font-family: Calibri; letter-spacing: -0.1pt;">t</span><span style="font-family: Calibri;">h co</span><span style="font-family: Calibri; letter-spacing: -0.05pt;">r</span><span style="font-family: Calibri; letter-spacing: 0.05pt;">rect</span><span style="font-family: Calibri; letter-spacing: -0.1pt;"> sk</span><span style="font-family: Calibri; letter-spacing: 0.05pt;">i</span><span style="font-family: Calibri; letter-spacing: -0.1pt;">l</span><span style="font-family: Calibri;">ls</span><span style="font-family: Calibri; letter-spacing: 0.05pt;"> </span><span style="font-family: Calibri;">or </span><span style="font-family: Calibri; letter-spacing: -0.1pt;">o</span><span style="font-family: Calibri;">u</span><span style="font-family: Calibri; letter-spacing: -0.05pt;">t</span><span style="font-family: Calibri; letter-spacing: -0.1pt;">sou</span><span style="font-family: Calibri; letter-spacing: 0.05pt;">r</span><span style="font-family: Calibri; letter-spacing: -0.1pt;">c</span><span style="font-family: Calibri;">e the </span><span style="font-family: Calibri; letter-spacing: -0.1pt;">p</span><span style="font-family: Calibri; letter-spacing: 0.05pt;">r</span><span style="font-family: Calibri;">o</span><span style="font-family: Calibri; letter-spacing: -0.1pt;">c</span><span style="font-family: Calibri;">e</span><span style="font-family: Calibri; letter-spacing: -0.1pt;">s</span><span style="font-family: Calibri;">s to ac</span><span style="font-family: Calibri; letter-spacing: 0.05pt;">h</span><span style="font-family: Calibri; letter-spacing: -0.1pt;">i</span><span style="font-family: Calibri;">eve even hi</span><span style="font-family: Calibri; letter-spacing: -0.05pt;">g</span><span style="font-family: Calibri; letter-spacing: -0.1pt;">h</span><span style="font-family: Calibri;">er</span><span style="font-family: Calibri; letter-spacing: -0.1pt;"> pe</span><span style="font-family: Calibri; letter-spacing: 0.1pt;">r</span><span style="font-family: Calibri; letter-spacing: -0.1pt;">f</span><span style="font-family: Calibri;">o</span><span style="font-family: Calibri; letter-spacing: 0.05pt;">r</span><span style="font-family: Calibri; letter-spacing: -0.15pt;">m</span><span style="font-family: Calibri;">a</span><span style="font-family: Calibri; letter-spacing: 0.1pt;">nce</span></li>
<li><span style="font-family: Calibri;">Focus on menu line item profitability to improve cash flow</span></li>
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<span style="font-family: Calibri;"><span style="letter-spacing: -0.05pt;"><br /></span></span>
<span style="font-family: Calibri; letter-spacing: -0.05pt;">To Higher Profits,</span><br />
<span style="font-family: Calibri;"><span style="letter-spacing: -0.05pt;">Fred</span></span><br />
<span style="font-family: Calibri;"><span style="letter-spacing: -0.05pt;"><br /></span></span>
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<div style="text-align: justify;">
<span style="font-family: Calibri;"><span style="letter-spacing: -0.05pt;"><i>Fred Favole is President of <u>Strategic Purchasing Services</u> (SPS), the foodservice industry's most experienced and accomplished firm specializing in department outsourcing, strategic sourcing projects and spend analytics. Ask Fred or Ron Bay about a solution for your business. Fred@ StrategicPurchasingServices. com, HQ Office: 912.634.0030 St.Louis Office: 636.527.3167 </i></span></span></div>
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Fred Favolehttp://www.blogger.com/profile/03660595941545767003noreply@blogger.comtag:blogger.com,1999:blog-2275940921728965579.post-22989156124795981302013-05-10T13:56:00.001-07:002013-05-11T03:12:15.110-07:00<h2 align="center" class="MsoNormal" style="line-height: normal; margin: 1.25pt 73.1pt 0pt 0in; text-align: center;">
Do you think about the MONEY first as Key To Better Buying?</h2>
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhblAkNw66Gcdu4WKJpZ96pLI4rCYMv2FYouyKT6efXRCL71W8Wg2SSKvM5LMvVMardJLh2TbCywBPxDRwN83CM3k_Z70XHX1WHMhZmzbFvJcLvEvriwZV-Y6A0ODIOdtT79aAB84tN-pGP/s1600/Ad_SPEND+LESS.jpg" imageanchor="1" style="clear: left; cssfloat: left; float: left; height: 164px; margin-bottom: 1em; margin-right: 1em; width: 249px;"><img border="0" height="141" mwa="true" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhblAkNw66Gcdu4WKJpZ96pLI4rCYMv2FYouyKT6efXRCL71W8Wg2SSKvM5LMvVMardJLh2TbCywBPxDRwN83CM3k_Z70XHX1WHMhZmzbFvJcLvEvriwZV-Y6A0ODIOdtT79aAB84tN-pGP/s200/Ad_SPEND+LESS.jpg" width="200" /></a></div>
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<span style="font-size: 12pt; mso-ascii-font-family: Calibri; mso-bidi-font-family: Calibri; mso-bidi-font-weight: bold; mso-fareast-font-family: Calibri; mso-font-width: 99%; mso-hansi-font-family: Calibri;"><span style="font-family: Calibri;"><strong>E</strong>very food service buyer has their own “formula” for achieving the optimum from suppliers and improving end-to-end total product costs.<span style="mso-spacerun: yes;"> </span></span></span><br />
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<span style="font-size: 12pt; mso-ascii-font-family: Calibri; mso-bidi-font-family: Calibri; mso-bidi-font-weight: bold; mso-fareast-font-family: Calibri; mso-font-width: 99%; mso-hansi-font-family: Calibri;"><span style="font-family: Calibri;">However, few emerging chain organizations are able to perform a proficient analysis to benchmark costs or project <span style="mso-spacerun: yes;"> </span>long term pricing success. </span></span></div>
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<span style="font-size: 12pt; mso-ascii-font-family: Calibri; mso-bidi-font-family: Calibri; mso-bidi-font-weight: bold; mso-fareast-font-family: Calibri; mso-font-width: 99%; mso-hansi-font-family: Calibri;"><span style="font-family: Calibri;">How can chains expect to compete with industry leaders without an understanding of the basic “farm to plate” cost of ownership process. What’s trending today is the use of third party group services offering volume discounts and rebate recovery. </span></span></div>
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<span style="font-size: 12pt; mso-ascii-font-family: Calibri; mso-bidi-font-family: Calibri; mso-bidi-font-weight: bold; mso-fareast-font-family: Calibri; mso-font-width: 99%; mso-hansi-font-family: Calibri;"><span style="font-family: Calibri;">However, these services were not intended to replace centralized procurement. Too many organizations sign-up because they want "free money" or to relieve the over-worked (multi-tasking) executive handling the purchasing responsibilities part-time. These services can actual add to the acquisition cost of goods because they prevent the chain from developing direct supply relationships. <o:p></o:p></span></span></div>
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<span style="font-size: 12pt; mso-ascii-font-family: Calibri; mso-bidi-font-family: Calibri; mso-bidi-font-weight: bold; mso-fareast-font-family: Calibri; mso-font-width: 99%; mso-hansi-font-family: Calibri;"><span style="font-family: Calibri;">Additionally, the structure of the relationship between the rebate service and end-user chain does not foster the highly flexible buying processes with fast reactions to commodity market changes and seasonal buying opportunities..the proven hallmark of world-class procurement. </span></span></div>
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<span style="font-size: 12pt; mso-ascii-font-family: Calibri; mso-bidi-font-family: Calibri; mso-bidi-font-weight: bold; mso-fareast-font-family: Calibri; mso-font-width: 99%; mso-hansi-font-family: Calibri;"><span style="font-family: Calibri;">It is not the mission of BuyersEdge, Entegra, Foodbuy, and VGM Client Rewards to develop your current or future supply partnerships, plan sourcing initiatives or manage high-volume commodity contracts.<span style="mso-spacerun: yes;"> </span><span style="mso-spacerun: yes;"> </span><o:p></o:p></span></span></div>
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<span style="font-size: 12pt; mso-ascii-font-family: Calibri; mso-bidi-font-family: Calibri; mso-bidi-font-weight: bold; mso-fareast-font-family: Calibri; mso-font-width: 99%; mso-hansi-font-family: Calibri;"><span style="font-family: Calibri;">It is, however, the responsibility of your purchasing executive and specialized firms like Strategic Purchasing (SPS) to develop current and future suppliers and position them to provide the highest performance at the optimum cost levels for your business.<span style="mso-spacerun: yes;"> </span></span></span><br />
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<span style="font-size: 12pt; mso-ascii-font-family: Calibri; mso-bidi-font-family: Calibri; mso-bidi-font-weight: bold; mso-fareast-font-family: Calibri; mso-font-width: 99%; mso-hansi-font-family: Calibri;"><span style="font-family: Calibri;">You can start by thinking about the money <u>last not first.</u> Start by following proven industry best-practices in building and managing your purchasing supply-chain. </span></span><br />
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To Higher Profits!</div>
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<b><i style="mso-bidi-font-style: normal;"><span style="font-size: 12pt; mso-ascii-font-family: Calibri; mso-bidi-font-family: Calibri; mso-fareast-font-family: Calibri; mso-hansi-font-family: Calibri;"><span style="font-family: Calibri;">Fred Favole is President of America’s most experienced purchasing firm for operators who have no internal procurement department and chains wishing to outsource the function for greater savings and overhead reduction. <span style="mso-spacerun: yes;"> </span>Contact Information: </span></span></i></b><br />
<b><i style="mso-bidi-font-style: normal;"><span style="font-size: 12pt; mso-ascii-font-family: Calibri; mso-bidi-font-family: Calibri; mso-fareast-font-family: Calibri; mso-hansi-font-family: Calibri;"><a href="mailto:Fred@StrategicPurchasingServices.com"><span style="color: blue; font-family: Calibri;">Email: Fred@StrategicPurchasingServices.com</span></a><span style="font-family: Calibri;"> Office: (912) 634-0030 <span style="mso-spacerun: yes;"> </span></span></span></i></b><i style="mso-bidi-font-style: normal;"><span style="font-size: 12pt; mso-ascii-font-family: Calibri; mso-bidi-font-family: Calibri; mso-fareast-font-family: Calibri; mso-hansi-font-family: Calibri;"><o:p></o:p></span></i></div>
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Fred Favolehttp://www.blogger.com/profile/03660595941545767003noreply@blogger.comtag:blogger.com,1999:blog-2275940921728965579.post-80389375383590743592013-02-20T04:03:00.000-08:002013-02-20T04:03:34.660-08:00What's Your Food Cost Problem?<br />
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<strong>G</strong>et the most from every dollar by calculating 3 allowable food cost controls & acknowledging that you may have a problem area. If nothing goes wrong, from your back door to your register, what will your food cost be?<br /><br />With something as important as your food cost, you want to have the tools and resources available to establish standards. In other words, you need to compare actual costs with the standard base, and spend your valuable time managing the variances.<br /><strong><br />Lets cover the 3 basics,</strong> </div>
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<li style="font-size: 1em; line-height: inherit; margin: 0px 0px 0.4em 2.5em; padding: 0px;">Standard recipe – includes the ingredients, amounts, menu item prep procedures</li>
<li style="font-size: 1em; line-height: inherit; margin: 0px 0px 0.4em 2.5em; padding: 0px;">Portion size – as the recipe is standardized, so too is the portion size, with the employees having the appropriate tools and instructions necessary.</li>
<li style="font-size: 1em; line-height: inherit; margin: 0px 0px 0.4em 2.5em; padding: 0px;">Standard portion cost – once we have recipe and portion standards, determine the portion cost of the menu item. </li>
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In reality, in commercial operations a menu item is not usually sold alone, it is part of a complete meal. There are many great point-of-sale systems and programs that can track and calculate daily / weekly number of portions / meals served (and the total food cost for selling, items sold, total sales income).<br /><br />Even if you’re in control of the food cost management process, you still have to battle the economic turmoil of higher prices or supply shortages looming large for later in 2013. </div>
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Then, there are Fred’s 7 ways to increase food cost in a restaurant, such as; </div>
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<strong style="font-size: 1.2em;">waste</strong><span style="font-size: 1.2em;">, </span><strong style="font-size: 1.2em;">overproduction</strong><span style="font-size: 1.2em;">, poor utilization/or </span><strong style="font-size: 1.2em;">selection of products</strong><span style="font-size: 1.2em;">, incorrect </span><strong style="font-size: 1.2em;">portioning</strong><span style="font-size: 1.2em;">, </span><strong style="font-size: 1.2em;">slow menu movers</strong><span style="font-size: 1.2em;"> (dogs!), </span><strong style="font-size: 1.2em;">poorly trained employees</strong><span style="font-size: 1.2em;">, and </span><strong style="font-size: 1.2em;">stealing </strong><span style="font-size: 1.2em;">(not just your brother-in-law) </span><br /><br /><span style="font-size: 1.2em;">During a recent consultation, I said to the owner of a 20 unit emerging chain who claimed that all of his employees where honest and his distributor did a great job managing purchasing for his restaurants, </span></div>
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<em>" Why is it that your waitress in Johns Creek collected for my coffee and sweet roll without presenting a guest check? I watched her closely after that and she never went near the cash register? And, I also noticed that your price of fresh cut chicken wings has not changed, even through post-Super Bowl prices are in free-fall <strong>”</strong></em><strong> </strong></blockquote>
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<span style="font-size: 1.2em; line-height: inherit;">By this time in the post, you have acknowledged </span><span style="font-size: 1.2em; line-height: inherit;"> having a food cost or spend challenge, so why not do something about it?</span></div>
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<span style="font-size: 1.2em; line-height: inherit;">The acquisition cost problem is solved by having skilled professionals contracting lower prices, recovering post-purchase income and managing the spend process; services now available in a single outsourcing plan from our firm. </span></div>
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<span style="font-size: 1.2em; line-height: inherit;">The other areas of cost management requires experienced on-site management, ongoing training, control systems and world-class communication of procedures and objectives. </span></div>
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<span style="font-size: 1.2em; line-height: inherit;">To Higher Profits!</span></div>
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<span style="font-size: 1.2em; line-height: inherit;">Fred</span></div>
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<span style="font-size: 1.2em; line-height: inherit;"><i><span style="background-color: white;">Fred Favole is President of <span style="color: blue;">Strategic Purchasing Services</span> (SPS), America's most experienced foodservice firm specializing in department outsourcing and spend management. Contract info: p: 912-634-0030, email: Fred@StrategicPurchasingServices.com </span></i></span></div>
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<span style="font-family: 'Lucida Grande', 'Lucida Sans Unicode', sans-serif; font-size: 13px; line-height: 16px;"><br /><br /></span>Fred Favolehttp://www.blogger.com/profile/03660595941545767003noreply@blogger.comtag:blogger.com,1999:blog-2275940921728965579.post-9111312325705953962013-02-06T03:28:00.000-08:002013-02-06T03:28:03.560-08:00Super-Bowl Plan For Your Foodservice Business<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgZnVaM_FP__Xgttl4DC-4t8Z_1u1VtiMGURbToMV52PG0TguJtREzr4GAWeiU5BBq5qEyFNqxVbbkIZ7fslNLhxw08jQenmrZISUKaTe7oHE__iDBwnUakqkfx8P0VZtic7c08Yb6JNeCF/s1600/SCM-250_76.jpg" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" height="96" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgZnVaM_FP__Xgttl4DC-4t8Z_1u1VtiMGURbToMV52PG0TguJtREzr4GAWeiU5BBq5qEyFNqxVbbkIZ7fslNLhxw08jQenmrZISUKaTe7oHE__iDBwnUakqkfx8P0VZtic7c08Yb6JNeCF/s320/SCM-250_76.jpg" width="320" /></a></div>
<strong style="color: #222222; font-family: Arial, Verdana, sans-serif; font-size: 12px;">D</strong><span style="color: #222222; font-family: Arial, Verdana, sans-serif;"><span style="font-size: 12px;">raw plays from the 2013 Super-Bowl to create dozens of food & supply cost-savings options. Produce a playbook to prepare for the coming economic playoffs so you can organize more effectively to win more spend matters.</span></span><span style="color: #222222; font-family: Arial, Verdana, sans-serif; font-size: 12px;"> </span><br />
<span style="color: #222222; font-family: Arial, Verdana, sans-serif; font-size: 12px;"><br /></span>
<span style="color: #222222; font-family: Arial, Verdana, sans-serif; font-size: 12px;"><u>SPS Post-Game Price Summary </u>(Feb)</span><br />
<span style="color: #222222; font-family: Arial, Verdana, sans-serif; font-size: 12px;">Burgers UP .15 lb. Wings No Change</span><br />
<span style="color: #222222; font-family: Arial, Verdana, sans-serif;"><span style="font-size: 12px;">Bacon UP .20 lb Oil UP 40 basis points</span></span><br />
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<span style="background-color: white; color: #222222; font-family: Arial, Verdana, sans-serif; font-size: 12px;">As top-line growth is hard to come by, the opportunity to build a defense that holds the line on price or an offense that goes for the profit goal line, is simply too good to ignore. </span><br />
<br style="color: #222222; font-family: Arial, Verdana, sans-serif; font-size: 12px;" /><span style="background-color: white; color: #222222; font-family: Arial, Verdana, sans-serif; font-size: 12px;">Limited resources, like the salary cap for the Champion Ravens are a fact of food service life, including time, staff and funding. Learn how to get the most out of your current team by running plays that recognize CORE talents and add special teams players to improve your capability and game winning strategy. </span><br />
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<span style="background-color: white; color: #222222; font-family: Arial, Verdana, sans-serif; font-size: 12px;">Focus on those areas in your growth and profitability playbook that you want to hand over to qualified specialists that you really don’t do well in-house. </span><b style="color: #222222; font-family: Arial, Verdana, sans-serif; font-size: 12px;">Game Strategy:</b><span style="background-color: white; color: #222222; font-family: Arial, Verdana, sans-serif; font-size: 12px;"> discover how individual commitment to a group effort by specialists –</span><u style="color: #222222; font-family: Arial, Verdana, sans-serif; font-size: 12px;"> that </u><span style="background-color: white; color: #222222; font-family: Arial, Verdana, sans-serif; font-size: 12px;">is what makes restaurant concepts work. </span><br /><span style="color: #222222; font-family: Arial, Verdana, sans-serif; font-size: 12px;"><br />Here are the top 5 half-time black board plays</span><span style="background-color: white; color: #222222; font-family: Arial, Verdana, sans-serif; font-size: 12px;"> that CEO's talked to their coaches about during the playoffs; </span><strong style="color: #222222; font-family: Arial, Verdana, sans-serif; font-size: 12px;">never </strong><span style="background-color: white; color: #222222; font-family: Arial, Verdana, sans-serif; font-size: 12px;">hand-off food spend areas to culinary, marketing or operations staff, and </span><strong style="color: #222222; font-family: Arial, Verdana, sans-serif; font-size: 12px;">never </strong><span style="background-color: white;"><span style="color: #222222; font-family: Arial, Verdana, sans-serif;"><span style="font-size: 12px;">give the ball, with 3rd down & short yardage to multi-tasking executives (hey- they don't even have time read the GET a "round TUIT " instructions on the their wristband! <u>Penalty:</u> Loss of profitable </span></span><b style="color: #222222; font-family: Arial, Verdana, sans-serif; font-size: 12px;">L</b><span style="color: #222222; font-family: Arial, Verdana, sans-serif;"><span style="font-size: 12px;">imited-</span></span><b style="color: #222222; font-family: Arial, Verdana, sans-serif; font-size: 12px;">T</b><span style="color: #222222; font-family: Arial, Verdana, sans-serif;"><span style="font-size: 12px;">ime-</span></span><b style="color: #222222; font-family: Arial, Verdana, sans-serif; font-size: 12px;">O</b><span style="color: #222222; font-family: Arial, Verdana, sans-serif;"><span style="font-size: 12px;">ffer, plus 5% of total spend left on the pricing table! </span></span></span><br style="color: #222222; font-family: Arial, Verdana, sans-serif; font-size: 12px;" /><br style="color: #222222; font-family: Arial, Verdana, sans-serif; font-size: 12px;" /><strong style="color: #222222; font-family: Arial, Verdana, sans-serif; font-size: 12px;">Super Plays for Your Business</strong><br />
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<li>Strategic Vendor Sourcing & Professional Contracting (performance)</li>
<li>External Distribution Warehouse Audits (price-compliance)</li>
<li>Freight / Logistics Cost Improvement (spend management)</li>
<li>Commodity Price Management (planning & forecasting)</li>
<li>Increased “spend-under-contract (financial control & stability)</li>
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<span style="background-color: white; color: #222222; font-family: Arial, Verdana, sans-serif; font-size: 12px;">During the initial assignment process, with SPS added to your specialist team, we will uncover hidden savings and look at new tactics to create significant buying opportunities, where there is none at the moment. </span><br style="color: #222222; font-family: Arial, Verdana, sans-serif; font-size: 12px;" /><br style="color: #222222; font-family: Arial, Verdana, sans-serif; font-size: 12px;" /><span style="background-color: white; color: #222222; font-family: Arial, Verdana, sans-serif; font-size: 12px;">To Higher Profits! </span><br style="color: #222222; font-family: Arial, Verdana, sans-serif; font-size: 12px;" /><span style="background-color: white; color: #222222; font-family: Arial, Verdana, sans-serif; font-size: 12px;">Fred</span><br style="color: #222222; font-family: Arial, Verdana, sans-serif; font-size: 12px;" /><br style="color: #222222; font-family: Arial, Verdana, sans-serif; font-size: 12px;" /><em style="color: #222222; font-family: Arial, Verdana, sans-serif; font-size: 12px;">Fred Favole is Team Owner of <strong>Strategic Purchasing Services </strong>(SPS), America’s most experienced foodservice consulting firm specializing in department outsourcing, “center-of-the-plate” contracting and advanced spend management systems. Contact The Owners Office, Telephone: 912-634-0030, Connect on LinkedIn or follow Coach Fred's game winning blog: https://purchasinginsights.blogspot.com<br /></em><span style="background-color: white; color: #222222; font-family: Arial, Verdana, sans-serif; font-size: 12px;"></span><br style="color: #222222; font-family: Arial, Verdana, sans-serif; font-size: 12px;" /><br style="color: #222222; font-family: Arial, Verdana, sans-serif; font-size: 12px;" />Fred Favolehttp://www.blogger.com/profile/03660595941545767003noreply@blogger.comtag:blogger.com,1999:blog-2275940921728965579.post-64918204956581926092013-01-12T04:35:00.000-08:002013-01-12T04:35:00.140-08:007 Tips for Restaurant Financial Survival<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgRQ40w5nQldA-C5i_xbDSUicDXGZ0LyVZtnssZSUQ3EuguOBlg889_f7_LebCACJc2qnRliImu0bclxRfuC2XqtZNBGw1uUBUg9p3UVu6wMEX3DyifbSBsGS5usFHRAGTnQhvxH1Z25cfn/s1600/ITS+YOUR+MONEY_circle+w+money+stack.jpg" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" height="157" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgRQ40w5nQldA-C5i_xbDSUicDXGZ0LyVZtnssZSUQ3EuguOBlg889_f7_LebCACJc2qnRliImu0bclxRfuC2XqtZNBGw1uUBUg9p3UVu6wMEX3DyifbSBsGS5usFHRAGTnQhvxH1Z25cfn/s200/ITS+YOUR+MONEY_circle+w+money+stack.jpg" width="200" /></a></div>
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<strong style="font-weight: bold;">R</strong><span style="background-color: white;">estaurant Chain CFO's and Purchasing Officers are on the front-line of developing strategies to meet tighter budget demands. </span></div>
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<span style="background-color: white;"><span style="color: #222222; font-family: Arial, Verdana, sans-serif;"><span style="font-size: 12px;">The benefits of implementing a best practices process in finance and procurement are considerable, but requires a deep and broad knowledge of the food supply-chain, restaurant menu management, commodity buying and access to company-wide spend analytics. If resources are not in your restaurant "tool-belt" it's time to seek third-party support.</span></span></span><span style="background-color: white; color: #222222; font-family: Arial, Verdana, sans-serif; font-size: 12px;"> </span></div>
<br style="color: #222222; font-family: Arial, Verdana, sans-serif; font-size: 12px;" /><strong style="color: #222222; font-family: Arial, Verdana, sans-serif; font-size: 12px;">7-tips to Emerging Restaurant Chains for financial survival</strong></div>
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<strong style="color: #222222; font-family: Arial, Verdana, sans-serif; font-size: 12px;"><br /></strong><br style="color: #222222; font-family: Arial, Verdana, sans-serif; font-size: 12px;" /><strong style="color: #222222; font-family: Arial, Verdana, sans-serif; font-size: 12px;">1 Expect the Unexpected </strong><span style="background-color: white; color: #222222; font-family: Arial, Verdana, sans-serif; font-size: 12px;">- volatile commodity markets and reduced supplier inventory make this a brave new supply world. Track food cost basis points monthly by line item and purchase category; poultry may be down 4%, while wings increased .45 lb. </span><br style="color: #222222; font-family: Arial, Verdana, sans-serif; font-size: 12px;" /><br style="color: #222222; font-family: Arial, Verdana, sans-serif; font-size: 12px;" /><span style="background-color: white; color: #222222; font-family: Arial, Verdana, sans-serif; font-size: 12px;">Don’t allow your menu guru or purchasing director to single source an item if they can't obtain a firm price (no change) for terms of 90 days or more. Competition drives lower pricing even in tight markets.</span><br style="color: #222222; font-family: Arial, Verdana, sans-serif; font-size: 12px;" /><br style="color: #222222; font-family: Arial, Verdana, sans-serif; font-size: 12px;" /><strong style="color: #222222; font-family: Arial, Verdana, sans-serif; font-size: 12px;">2 Manage "Gap" Pricing</strong><span style="background-color: white; color: #222222; font-family: Arial, Verdana, sans-serif; font-size: 12px;"> - if you operate in multiple markets, try to close the pricing gap between your highest and lowest prices for same item. Most chains save 2% to 5% by just comparing weekly prices on produce, bread and eggs within their own supply-chain. Negotiate everything back to the best price demonstrated in your system. </span><br style="color: #222222; font-family: Arial, Verdana, sans-serif; font-size: 12px;" /><br style="color: #222222; font-family: Arial, Verdana, sans-serif; font-size: 12px;" /><div style="text-align: justify;">
<strong style="color: #222222; font-family: Arial, Verdana, sans-serif; font-size: 12px;">3 Distribution Fees</strong><span style="background-color: white; color: #222222; font-family: Arial, Verdana, sans-serif; font-size: 12px;"> - develop an RFP (bid) for distribution. Margins and case fees are actually on the decline in this economy, sub-10% margins and $2.00 per case fees are now common. Remember to negotiate based on dollar drops, keeping in mind that distributors see a dollar sign on your head reading; <u>Gross Profit Margin</u> per delivery. Make sure your program limits per delivery profits to $165. Hint: When did you last authorize a external warehouse distribution audit? </span></div>
<br style="color: #222222; font-family: Arial, Verdana, sans-serif; font-size: 12px;" /><strong style="color: #222222; font-family: Arial, Verdana, sans-serif; font-size: 12px;">4 Spend Management</strong><span style="background-color: white; color: #222222; font-family: Arial, Verdana, sans-serif; font-size: 12px;"> - use cost-reduction specialists like Strategic Purchasing Services (SPS) to develop containment strategies, chart commodities futures prices and review your product specifications. A "fresh eyes approach will save thousands; and the project can be completed within 120 days. </span><br style="color: #222222; font-family: Arial, Verdana, sans-serif; font-size: 12px;" /><br style="color: #222222; font-family: Arial, Verdana, sans-serif; font-size: 12px;" /><strong style="color: #222222; font-family: Arial, Verdana, sans-serif; font-size: 12px;">5 Profit-From-Promotions </strong><span style="background-color: white; color: #222222; font-family: Arial, Verdana, sans-serif; font-size: 12px;">- this is your 3 foot "tap-in" at the golf course - money in the bank! Don't blow it by selling higher priced products that don't give your bottom-line a boost. Our firm sources #1 overstocks at prices 40% below discounted retail pricing. Product values are out there - but you have to work harder to find them. </span><br style="color: #222222; font-family: Arial, Verdana, sans-serif; font-size: 12px;" /><br style="color: #222222; font-family: Arial, Verdana, sans-serif; font-size: 12px;" /><strong style="color: #222222; font-family: Arial, Verdana, sans-serif; font-size: 12px;">6 Financial Transparency</strong><span style="background-color: white; color: #222222; font-family: Arial, Verdana, sans-serif; font-size: 12px;"> - Now is NOT the time to keep the falling P&L away from the C-Staff. Let them help isolate key products that are hurting your profit margins (cost, labor, low sales, over-portioned) and get those"dogs" off your menu. </span><br style="color: #222222; font-family: Arial, Verdana, sans-serif; font-size: 12px;" /><span style="background-color: white;"><span style="color: #222222; font-family: Arial, Verdana, sans-serif;"><span style="font-size: 12px;">We encourage you to form cost-reduction teams, or "think-tanks" with representatives from purchasing, operations and marketing. Invite purchasing consultants and distribution executives to a few meeting, sparks lead to new ideas and bankable savings. </span></span></span><br /><div style="text-align: justify;">
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<strong style="font-weight: bold;">7 Leverage Every Dollar</strong><span style="background-color: white;"><b> - </b>join a buying groups (GPO’s) to help with low-volume item purchasing and to generate rebate income. If you don't have a commodity buying expert on staff, rent one...there are a number of highly respected third-party services like; American Restaurant Association (ARA) , Strategic Purchasing Services (SPS), Creative Purchasing Solutions and Axis Purchasing; proven resources to reduce protein costs and drive profits to your bottom-line. </span></div>
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<span style="background-color: white; color: #222222; font-family: Arial, Verdana, sans-serif; font-size: 12px;">If your company is determined to survive these economic times then start building management team(s) bring new resources on board. It's Your Money...besides, your competition did all this last year. </span><br style="color: #222222; font-family: Arial, Verdana, sans-serif; font-size: 12px;" /><br style="color: #222222; font-family: Arial, Verdana, sans-serif; font-size: 12px;" /><span style="background-color: white; color: #222222; font-family: Arial, Verdana, sans-serif; font-size: 12px;">To Higher Profits!</span><br style="color: #222222; font-family: Arial, Verdana, sans-serif; font-size: 12px;" /><span style="background-color: white; color: #222222; font-family: Arial, Verdana, sans-serif; font-size: 12px;">Fred</span><br style="color: #222222; font-family: Arial, Verdana, sans-serif; font-size: 12px;" /><br style="color: #222222; font-family: Arial, Verdana, sans-serif; font-size: 12px;" /><em style="color: #222222; font-family: Arial, Verdana, sans-serif; font-size: 12px;">Fred Favole is President of <strong>Strategic Purchasing Services</strong> (SPS), a firm specializing in outsourcing, commodity contracting and advanced rebate recovery. His contact information: Office 912.634.0030 E-mail: Fred@StrategicPurchasingServices.com Connect on LinkedIn.</em></div>
Fred Favolehttp://www.blogger.com/profile/03660595941545767003noreply@blogger.comtag:blogger.com,1999:blog-2275940921728965579.post-17896785352596239762012-12-31T13:46:00.000-08:002012-12-31T13:46:00.437-08:00Knowing How to Buy Wine Without Falling Down, Part 1<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgOw1zDuyDTQNhdzxiEl2ojnC1d75ghmI4-p-kTdFL0791_a2ojfCz7Xqi8Pu8Bg91eOPMnEhwTxiytNMeofQsKiVePqhNSMsF1pOewJsqDqgNE0DNHx3XIFb19f8aMjCCQhnj2eTNEqONQ/s1600/wing+tasting+event.jpg" imageanchor="1" style="clear: left; cssfloat: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" eea="true" height="132" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgOw1zDuyDTQNhdzxiEl2ojnC1d75ghmI4-p-kTdFL0791_a2ojfCz7Xqi8Pu8Bg91eOPMnEhwTxiytNMeofQsKiVePqhNSMsF1pOewJsqDqgNE0DNHx3XIFb19f8aMjCCQhnj2eTNEqONQ/s200/wing+tasting+event.jpg" width="200" /></a></div>
<strong>O</strong>nly in the last ten years have I appreciated what the legend of Creighton Churchill ("The World of Wines" and " A Notebook For the Wines of France") has meant to the foodservice industry in the selection and enjoyment of selling fine wines and alcoholic beverages.<br /><br />During my brief encounters with Creighton during the heyday of the airline industry (Jumbo 747s, piano bars, and deadhead flights from Puerto Rico to JFK)) we were both always high; I worked for American Airlines and traveled, and he was our wine consultant. Creighton was on a mission to bring quality wine to the masses in a New York elitist sort of way, and I was a rookie F&B purchasing agent.<br /><br />Experience has told us that potholes, or in my case “air-pockets”are to be avoided when buying and selling alcoholic beverages. While this blog is not a story about airway causalities, before suggesting how to select a new wine for your table, I wanted to share a few axioms (and warnings) that your humble blogger has formed from years of experience: <br />
<ol>
<li>Foodservice purchasing agents should <strong>not </strong>buy everything they sample.</li>
<li><strong>Never </strong>play golf for money with liquor salesmen</li>
<li><strong>Deny</strong> that you have extra keys to the liquor storeroom</li>
<li><strong>Do</strong> subscribe to Food & Wine Magazine and The Wine Spectator</li>
<li>Attend the “ <em>Pune Wine Tasting Festival </em>” at least once in your life.</li>
<li><strong>Read </strong>The Noble Grape by Andre L. Simone, before your visa to India is stamped.</li>
<li>Surprise your employees with <strong>Hydrometer tests </strong>for alcohol contents</li>
<li><strong>Never</strong> buy anything but quality brands of liquors and wines (regardless of price)</li>
<li><strong>Respect</strong> liquor controls from the Feds down through the state, county, police, health department and from your wife.</li>
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I have always respected C-level executives like Don Stanczak (Interstate Hotels & Resorts) and Kevin Garvin (Neiman Marcus), and our firm has had long-standing relationships with both companies. Their leadership and savvy regarding the selection of fine wines and spirits leaves a lasting impression. <br />
<br />Just like my first mentor, Creighton, they used to say they could tell their managers “how to buy liquor and wine in five minutes – but teaching them what to buy would take five years.”<br />
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The art of tasting, however, can be leaned more quickly than selection, and can be enjoyable when combined with varieties of food. The basic art of wine tasting is as follows: <br />
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<li>Look (bright, clear, free of sediment, color),</li>
<li>Smell (bouquet, aroma, identify grape, nuttiness),</li>
<li>Taste (dry, sweet, fortified, “pluckiness” [tannin], and enjoy!)</li>
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If you are new to wine selection and spirits purchasing, take a few years to watch and listen to the experts, and try not to fall down. <br /><br />Happy New Year!<br />
Fred<br /><br /><em>Fred Favole is Founder & President of <strong>Strategic Purchasing Services</strong> (SPS), America's most experienced purchasing firm specializing in service to emerging foodservice brands. Contact Information: p: 912-634-0030, email: Fred@ StrategicPurchasingServices.com, Connect on LinkedIN. <br /></em>Fred Favolehttp://www.blogger.com/profile/03660595941545767003noreply@blogger.comtag:blogger.com,1999:blog-2275940921728965579.post-85827025300779639982012-12-20T03:51:00.000-08:002012-12-20T03:51:00.400-08:00Foodservice Purchasing Survival Teams<strong></strong><br />
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgISpauUm99lHZPchaFoTaZXG5exs3lszj7VOMPMQkLp-VaijuMqMFT6u9MFpCOVezUrbQl_8p2TbQsCCy0FyM_7q84HfnOvLACGGWh7APLbugKyWoHSkYF5XCnBP-72nLDhi3DD285PTho/s1600/key+to+cost+management.jpg" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgISpauUm99lHZPchaFoTaZXG5exs3lszj7VOMPMQkLp-VaijuMqMFT6u9MFpCOVezUrbQl_8p2TbQsCCy0FyM_7q84HfnOvLACGGWh7APLbugKyWoHSkYF5XCnBP-72nLDhi3DD285PTho/s1600/key+to+cost+management.jpg" /></a><strong>P</strong>urchasing is not an isolated function and to succeed it must operate in cooperation with the food and beverage operation. At the same time, the relationship between buyers and sellers is key to protecting prices and assuring supply. To accomplish your organizations purchasing goals you need a purchasing support system.<br />
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The business of food purchasing in the foodservice industry is dominated by major chains, systems of international agriculture, government involement in fishing, farming and the major food distributors. </div>
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SPS’ processes include our purchasing team members working with our clients staff with the goal of a knowledge transfer, utilizing our expertise, resources and tools to enable the group or emerging chain to conduct effective purchasing far into the future. </div>
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You know that you are ready to start the purchasing support program solo if your staff understands spend managment, commodity markets, trade agreements (ex: NAFTA), import/exports, logistics-distribution, production contracting, food specifications and has a wide variety of foodservice business experience. <br />
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<u>Getting started planning chart for your support system</u><br />
<u><img class="align-center" data-mce-src="http://api.ning.com:80/files/njA7r*4-RVgT7SHt1XLD-cqv*2vpGjtWitDNMviQO-8aVkqG4ohHImHezRtiy41Fh6iPTksdhwsXYac2F0AP*U5qXrpSS-uz/purchasingsupport3.jpg" height="324" src="http://api.ning.com/files/njA7r*4-RVgT7SHt1XLD-cqv*2vpGjtWitDNMviQO-8aVkqG4ohHImHezRtiy41Fh6iPTksdhwsXYac2F0AP*U5qXrpSS-uz/purchasingsupport3.jpg" width="568" /></u><br />
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The implementation of the purchasing support team system will help you streamline your procurement process savings 5%-10% annualy; you will be a more profitable and a more efficient operator. Don’t be left behind next year as your competitors battle to contain-costs and maintain a continuity of supply. </div>
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To Higher Profits! <br />
Fred <br />
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<div style="text-align: justify;">
<em>Fred Favole is President of <strong>Strategic Purchasing Services</strong> (SPS), America's most experienced and trusted firm specializing in commodity contracting, staff outsourcing and supply-chain managnement. Contact:</em> <a data-mce-href="mailto:fred@strategicpurchasingservices.com" href="mailto:fred@strategicpurchasingservices.com">fred@strategicpurchasingservices.com</a>, connect on LinkedIN or call (912) 634-0030.</div>
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Fred Favolehttp://www.blogger.com/profile/03660595941545767003noreply@blogger.comtag:blogger.com,1999:blog-2275940921728965579.post-31685461550001656262012-12-13T09:37:00.000-08:002012-12-13T09:37:00.265-08:00Things To Come - Foodservice Purchasing 2013<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjHnCbM-wh_OKPvvEJx4OW-JPVpb_9kcBU9KWW8fPc71rq_fbrQihhv-NKhvf7twieXWWjdGUKr6L4yG_Ozvs_86u_mY5xZ7WcATSbO-gIwbTa6XRHLudWh-lPReWlhndSMr_WL1BjdlLEq/s1600/cost+managment.jpg" imageanchor="1" style="clear: left; cssfloat: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" height="149" nea="true" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjHnCbM-wh_OKPvvEJx4OW-JPVpb_9kcBU9KWW8fPc71rq_fbrQihhv-NKhvf7twieXWWjdGUKr6L4yG_Ozvs_86u_mY5xZ7WcATSbO-gIwbTa6XRHLudWh-lPReWlhndSMr_WL1BjdlLEq/s200/cost+managment.jpg" width="200" /></a></div>
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<strong>I</strong>n the event that the world does not end with the Mayan calendar this month, here is a quick guide to preparing your organization for the coming higher commodity prices, product allocations and forced foodservice job reductions.<span style="mso-spacerun: yes;"> </span></div>
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Try to tackle the spend management challenge you need all the puzzle pieces, even if the boss is saying, “we’re already behind on this year’s goals and our infrastructure needs work before we can go ahead with any changes.” </div>
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Many times team members also will want to keep doing it the way “we’ve always done it", thinking that no change provides job security!</div>
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Is your foodservice structure ready to support new products and changes in purchasing strategies? Creating the proper attitude concerning these 4 management areas will improve your bottom-line.<span style="mso-spacerun: yes;"> </span></div>
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<u>Increase Supplier Performance</u> – make sure your suppliers are meeting your objectives, don’t merely maintain the relationship – build it. </div>
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<u>Reduce The Buying Cycle </u>-- most suppliers no longer offer long-term pricing unless you take the risk, so streamline your bid process and focus on quarterly bids that generate even modest savings or cost-avoidance.</div>
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<u>Cut Purchasing Costs and Overhead</u> – lower operating costs by outsourcing where you don’t have on-staff staff expertise. If company buying responsibility rests with the multi-tasking executive in the corner office who does many things “adequately”, ask your distributor if your prices are comparable with your competitors’.</div>
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<u>Reduce Maverick Purchasing and Increase Control </u>– increases spend management and control purchases - you will need to maximize every purchase dollar.<span style="mso-spacerun: yes;"> </span></div>
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While your company may not be ready to more forward with the “risk-reward” buying strategy of buying commodity futures, you can take the first steps to protect prices. Try developing a short-term action plan; we help our foodservice chain clients address the more immediate savings opportunities while outlining the steps to meet long-term goals.<span style="mso-spacerun: yes;"> </span></div>
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Determining the right solution for your company requires doing what works for the most profitable brands in foodservice: commodity market price management. Using the markets will catapult your purchasing forward quickly and it’s the only solution that I know of that can satisfy your present and future food cost needs. </div>
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With both soybeans and corn at near record low stocks watch the cost-index soar and push protein prices higher even as supply is consolidating.<span style="mso-spacerun: yes;"> </span></div>
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While most foodies think 2012 pricing was one for the record books, purchasing pro's know that in the coming year we will see more volatility and wide price swings.<span style="mso-spacerun: yes;"> </span></div>
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<span style="mso-spacerun: yes;"></span>It you don’t have the buying expertise required to manage the markets, get help. It’s Your Money!<span style="mso-spacerun: yes;"> </span></div>
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<span style="mso-spacerun: yes;">To Higher Profits! </span></div>
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<span style="mso-spacerun: yes;">Fred</span></div>
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<em>Fred Favole is Founder & President of <strong>Strategic Purchasing Services</strong> (SPS), America's most experienced and trusted purchasing firm specializing the product contracting and post-purchase income recovery. Contact: (912) 634-0030 Email: </em><a href="mailto:Fred@StrategicPurchasingServices.com"><em>Fred@StrategicPurchasingServices.com</em></a><em> Connect on LinkedIN.</em>Fred Favolehttp://www.blogger.com/profile/03660595941545767003noreply@blogger.comtag:blogger.com,1999:blog-2275940921728965579.post-82968302879522318892012-11-22T08:51:00.001-08:002012-11-22T08:51:30.064-08:00Going "Green and Healthy" Impacts Purchase Decisions <ul class="navigation easyclear">
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<strong>S</strong>peculation has been confirmed: the foodservice executive chef and purchasing manager role in product purchase decisions is having an effect on the way farms, ranches and packers use hormones, pesticides and processing additives like "meat glue" and "pink slime" despite pressure to contain prices.<br />
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As we enter 2013, the environment’s predictability seems to be decreasing as concerns about the healthful and green quality of foods we serve to the public increases. A requisite for restaurant chain economic survival requires organizations to manage the coming food inflation, follow menu trends and yet keep menu prices affordable. <br />
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On the other hand, as the culinary and procurement staff in restaurant and hotel chains becomes more knowledable about the products they purchase; they are connecting the cause and effect relationship between product specifications and buying "green and healthy foods." This influences suppliers who must respond to the bid requirements (specifications) or risk losing business.<br />
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<span class="font-size-3"><u><span style="background-color: white;"><strong>5 Factors Influencing Your Ability to Buy Green & Healthy (G&H)</strong></span></u></span><br />
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SUPPLIERS - competition forces a continued use of chemicals and additives, clean feed, and hormones. And, broad line food distributors resist using warehouse slots for slow-moving green, healthy, natural products, although this attitude is changing. <br />
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SUPPLY/DEMAND – foodservice chains develop new local resources for natural products; consequently, there is a low level of centralization, and greater variance in product standards. At the same time, the demand for “green” and heathly products is growing. In the West exciting emerging chains like <u>Garbanzo Mediterranean Grill</u> and <u>Costa Vita Fresh Mexican Grill</u> continue to push the “healthy-green” food envelope. The Millennium generation can anticipate a new age in institutional G & H food purchasing without the economic and logistics challenges of today's CPO's.<br />
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GOVERNMENT - think worldwide: laws, regulations, international farming conglomerates with Agency 21 product shortages and allocations. The motto, “feed them first, then turn them green! (See my previous blog “Local Suppliers and U.S. Food Crunch <a href="https://purchasinginsights.blogspot.com/" rel="nofollow">https://purchasinginsights.blogspot.com</a>)<br />
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TECHNOLOGY - the chemical influences of food continue (example: enzyme-modified cheese, artificial flavors). Despite the lack of funding, research in food technology continues and many Argo-farming companies are using less “Roundup” and other nasty chemicals to kill bugs and weeds.<br />
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CONSUMERS - the average restaurant customer can’t afford to eat out at the “G & H" restaurant most of the time, and others continue to make poor food decisions. Overall, the socio-political component plus consumer attitude will force more environmentally friendly, echo-green and healthier products to market.<br />
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Food service buyers have always grappled with the challenge of buying the right product at the right price. Now that many foodservice executives have embraced the "G & H" supply chain as critical to their success, the purchasing-culinary team will be able to make better purchase decisions. <br />
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To "<strong>G & H</strong>" Foods & Higher Profits! <br />
Fred<br />
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<em>Fred Favole is President of <span style="text-decoration: underline;">Strategic Purchasing Services</span> (SPS) is America's most experienced firm specializing in foodservice chain outsourcing, cost-reduction and green & healthy (G & H ) supply-plan programs. Contact: <a href="mailto:Fred@StrategicPurchasingServices.com" rel="nofollow">Fred@StrategicPurchasingServices.com</a>, P: 912-634-0030 or Connect on LinkedIn.</em><br />
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Fred Favolehttp://www.blogger.com/profile/03660595941545767003noreply@blogger.comtag:blogger.com,1999:blog-2275940921728965579.post-43253115159955004332012-10-28T04:08:00.001-07:002012-10-31T03:29:17.323-07:00<div style="background-color: white; border-bottom: medium none; border-left: medium none; border-right: medium none; border-top: medium none; color: black; overflow: hidden; text-align: left; text-decoration: none;">
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Local Suppliers Can Help You Avoid The Coming U.S. Supply Crunch</h1>
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<span style="font-family: 'Arial', 'sans-serif'; font-size: 10pt;"><strong>F</strong><strong><span style="font-family: 'Arial', 'sans-serif'; font-weight: normal;">oodservice operators are</span></strong> able to improve the quality and value of food products by sourcing local vendors, and giving preferences to green initiatives. This is an important sourcing strategy that also supports an even more important initiative.</span><br />
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<span style="font-family: 'Arial', 'sans-serif'; font-size: 10pt;">The world’s food growing limitations and coming inflation will politicize the production and distribution of many transported food products and commodities. We have already seen legislation controlling farming land development, cattle and poultry processing. These are only a few of the components that will change the face of the food supply-chain.</span></div>
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<span style="font-family: 'Arial', 'sans-serif'; font-size: 10pt;">Unless the foodservice industry reforms the menu and purchasing process by supporting local and regional suppliers, America’s golden age of food product variety at reasonable cost will give way to product shortages and allocation programs. </span></div>
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<span style="font-family: 'Arial', 'sans-serif'; font-size: 10pt;">In our purchasing consulting practice and my previous experience with Fortune 50 restaurant chains, there has always been a battle for a share of the world’s food supplies. The independent restaurant operator,and many emerging chains do not understand that we compete against international conglomerate farm/packers, both domestic and foreign. </span></div>
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<span style="font-family: 'Arial', 'sans-serif'; font-size: 10pt;">Will your foodservice organization be forced to change menu offerings because of world-food management solutions? Did you realize that the largest food organizations already utilize closed buying systems for the purpose of expanding control over food supplies. </span></div>
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<span style="font-family: 'Arial', 'sans-serif'; font-size: 10pt;">My consulting firm specializes in protecting foodservice clients from price increases and supply shortages. However, we still come across too many operators that try to match the popular menu items promoted by the major brands, which means they make less profit and risk out-of-stocks. Other restaurants depend on distributors to manage supply relationships, without realizing the that are not protected without a formal supply agreement. </span></div>
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<span style="font-family: 'Arial', 'sans-serif'; font-size: 10pt;">What can be done? </span></div>
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<span style="font-family: 'Arial', 'sans-serif'; font-size: 10pt;">We are a creative and talented industry, isn't it time we made changes to how products are selected for the menu? Why create “false” markets and elevate common products like the Kiwi fruit to high-cost exotic food status? Many restaurants promote bone-in chicken wings, once a cheap throw away item, now high priced and hard to buy. Does every casual dining, sports bar, pizza and sandwich joint have to offer chicken wings? </span></div>
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<span style="font-family: 'Arial', 'sans-serif'; font-size: 10pt;">In my openion, foodservice has always been a "follow-the-leader" industry when it comes to new products. Not only are “me-too” menu offerings boring, but they inflate acquisition costs and lower profits for everyone! (btw.. chicken tenders’ prices are falling now that the BK promotion has ended)</span></div>
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<span style="font-family: 'Arial', 'sans-serif'; font-size: 10pt;">When will product development managers and chefs follow the lead of procurement professionals who can identify best buys based on product seasonality and availability. Why not use more pork and turkey for greater </span><span style="font-family: 'Arial', 'sans-serif'; font-size: 10pt;">and actually give the customer a break by discounting the menu price! </span></div>
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<span style="font-family: 'Arial', 'sans-serif'; font-size: 10pt;">The process can be managed in the cloud with purchasing and vendor postings of based seasoning buying calendars,protein production cycles and local products available for immediate purchase. This new menu management process starts with Purchasing providing the Culinary team with the product list for developing new products. </span></div>
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<span style="font-family: 'Arial', 'sans-serif'; font-size: 10pt;">Independent restaurants can do more to support local and regional supply sources and jump start this process, by developing a local supplier database that includes green suppliers, independent farms, growers, packers, processors and re-distribution centers (ie: DOT Foods, Mega-Warehouses). </span><span style="font-family: 'Arial', 'sans-serif'; font-size: 10pt;">Send your <u>local supplier data base</u> to the State Restaurant Association and SPS (<a href="mailto:fred@strategicpurchasingservices.com">fred@strategicpurchasingservices.com</a>) so we can share the information online. </span></div>
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<span style="font-family: 'Arial', 'sans-serif'; font-size: 10pt;">I am confident that local suppliers and smarter product selections can help us prevent a supply-crisis. The industry will be forced to "do more with less" and we will pay higher prices for the products that are available.</span> <span style="font-family: 'Arial', 'sans-serif'; font-size: 10pt;">That's why we must develop and support food sources closer to home and change the menu management process. </span></div>
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<span style="font-family: 'Arial', 'sans-serif'; font-size: 10pt;">The Foodservice community, more than any government program, can and will lead the way in preserving our food self-sufficiency. And, in doing so,assure food supplies for the talented professionals that feed America.</span></div>
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<span style="font-family: 'Arial', 'sans-serif'; font-size: 10pt;">A final suggestion: whenever your foodservice distributor or purchasing agent seeks a new source of supply, takes a competitive bid, grant a 5% cost preference to locally qualified suppliers and consider it a business investment.</span></div>
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<span style="font-family: 'Arial', 'sans-serif'; font-size: 10pt;"> </span><span style="font-family: 'Arial', 'sans-serif'; font-size: 10pt;"> </span> <span style="font-family: 'Arial', 'sans-serif'; font-size: 10pt;">To Sustainability,</span></div>
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<span style="font-family: 'Arial', 'sans-serif'; font-size: 10pt;">Fred</span></div>
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<i><span style="font-family: 'Arial', 'sans-serif'; font-size: 9pt;">Fred Favole is President of <b>Strategic Purchasing Services</b> (SPS), America’s most experienced foodservice firm specializing the outsourcing, rebate recovery, staff support, and commodity contracting.</span></i> <i><span style="font-family: 'Arial', 'sans-serif'; font-size: 9pt;">His contract information: P: 912.634.0030, email: <a href="http://us.mc1850.mail.yahoo.com/mc/compose?to=Favole%40gate.net" rel="nofollow" target="_blank"><span style="color: blue;">Favole@gate.net</span></a>. Profile: linkedIN.com/in/strategicpurchasing</span></i></div>
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Fred Favolehttp://www.blogger.com/profile/03660595941545767003noreply@blogger.comtag:blogger.com,1999:blog-2275940921728965579.post-54103041702328121592012-10-17T07:11:00.000-07:002012-10-17T07:11:03.239-07:00Foodservice Struggle To Cut-Costs As Chain Compete for Better Prices<div class="xg_column xg_span-16 xj_classic_canvas">
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<strong>I</strong>n order to be competitive, emerging foodservice organizations are re-examining the way they perform activities such as; menu-management, strategic product sourcing, contracting, vendor price-compliance and other routine C-staff functions.<br />
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Despite the clear advantages of outsourcing these non-core business processes, many organizations fail to do so because of established attitudes, limited knowledge of the purchasing supply-chain, fear of high retainer costs or long standing distributor and supplier relationships. <br />
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DOES ATTITUDE AND COMPANY CULTURE IMPACT THE ABILITY OF YOUR COMPANY TO UTILIZE THE NEW PURCHASING DYNAMIC AVAILABLE THROUGH SPECIALIZED PURCHASING FIRMS?<br />
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Consider your strategic supply-chain plan for 2013 and how well you managed the 2.1% food inflation since May 2012. Did you know that Q1-2013 is projected to be the highest food cost-quarter in 30 years! <br />
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You still have time to unlease the tremendous benefits of utilizing the skills and resources available from SPS and other industry leading companies; consider the following:<br />
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<b><u>More than a trend</u></b> - there is a need for hotel and restaurant brands to focus on critical / core business functions, downsize staff and upgrade the purchasing process. Outsourcing programs managed by the top 4 companies in the foodservice industry now manage $2.65 billion in food and supply purchasing for clients through "direct-to-supplier" contracting. <br />
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<b><u>Gain Leverage</u></b> - leading consulting companies are managed by senior level procurement executives with a tremendous network of alliances / partnerships which allows them to operate much more efficiently that your purchasing department. <br />
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<b><u>Experience Drives Performance</u></b> - product costs are driven by commodity price managment and you really do need an ally with experience and experience to conduct business in this tough foodservice environment that demands excellence in <u>everything your do.</u> <br />
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<b><u>Best ROI On The Planet</u></b> -- the value proposition for outsourcing is much larger than simply cost reduction. Outsourcing also allows organizations to be more effective and flexible. To start, ask SPS to complete a 1-time department and spend assessment, it's really worth your time and investment.<br />
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Ranking the <u>best purchasing outsourcing services</u> by critical performance categories: <br />
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#<strong>1</strong> <em><u>Strategic Purchasing Services</u></em> (fields the most sr. level purchasing & distribution management,) acheives the highest acquistion cost-impact / savings, offers outsourcing package and a stand-alone 100% performance based commodity contracting service. <br />
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#<strong>2</strong> <em><u>Spend Difference</u></em> (most $ spend under managment and growing, solid service, features "vendor paid fees" that offsets the cost-of-service, service leader operating is the Western states.<br />
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#<strong>3</strong> <u><em>Empad</em> -</u> provides proven service, middle management provided support to a variety of chains, leadership is knowledgable, steady but not dynamic. <br />
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#<strong>4</strong> <em><u>Restaurant Partners</u></em> - an emerging service for casual and fine dining operators; service works best when combined with RP's restauarnt managment program; lacks advanced spend-management software. Part of the Foodbuy program re-seller family, with a focus on rebates.<br />
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SPS, on average, achieves savings or cost-avoidance of 5% to 15% of total food and supply spend; with overhead cost reductions as much as 60%, when the full department outsourcing option is selected. <br />
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To Higher Profits!<br />
Fred<br />
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<em>Fred Favole, President of <strong>Strategic Purchasing Services</strong> (SPS) along with Ron Bay, Managing Partner, direct America's most experienced firm specializing in purchasing dept. outsourcing and cost-reduction contracting. Contact: HQ Office. 912.634.0030, email <a href="mailto:ffavole@hotmail.com" rel="nofollow">ffavole@hotmail.com</a>. Fred's Bio: linkedIN.com/in/strategicpurchasing</em><br />
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Fred Favolehttp://www.blogger.com/profile/03660595941545767003noreply@blogger.comtag:blogger.com,1999:blog-2275940921728965579.post-15873520258503695752012-09-27T07:39:00.001-07:002012-09-27T07:39:55.496-07:00Real-Deal Price or Vendor Discussion<div style="background-color: white; border-bottom: medium none; border-left: medium none; border-right: medium none; border-top: medium none; color: black; overflow: hidden; text-align: left; text-decoration: none;">
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<strong>D</strong>iscussions with suppliers about pricing helps food service executives understand changing markets, protect menu profits and consider alternative buying tactics and options. However, until a written pricing agreement has been completed, do <span style="text-decoration: underline;">not</span> assume that you have secured a protected price. <br />
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Leading food service chain buyers, as well as our consulting team follow these simple rules for distinguishing between pricing discussions, program negotiations and committed vendor agreements.<br />
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#<strong>1 </strong>Just because you made a purchase decision don’t confuse this with an agreement. Confirm all verbal pricing discussions.<br />
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#<strong>2 </strong>Pricing issues or misunderstandings about product and price commitments are best resolved in writing, as this formality serves to clear the air for the future.<br />
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#<strong>3 </strong>Formal vendor negotiations should be part of your contracting plan. This places all parties on record, allows you to involve the “next higher level” of supplier management, and for emerging chains, your brand will receive higher visibility back at the manufacturers or distributors corporate office. (<em>hint: not all suppliers follow the commercial pricing rules of Sarbanes-Oxley or Robinson Patman) </em>#<strong>4</strong> Stand Your Ground during formal price negotiations, if the supplier expects you to accept a price prior to the meeting or with the boss in the room, do not! Feel free to question the pricing and be prepared to negotiate at a later time. <br />
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Here is a buying tactic that works great to achieve better prices and will save money when markets are increasing; look directly at the most senior manager from the supplier's side and ask for a 30 day price extension. <br />
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When food service owners/managers or your boss thinks they are negotiating when they are not, the consequences can be detrimental to your bottom-line.<br />
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To Higher Profits,<br />
Fred<br />
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<em>Fred Favole is Founder & President and Ronald Bay, Managing Partner, direct the <strong>Strategic Purchasing Services</strong> (SPS) consulting firm specializing in department outsourcing, and the "Get Deals Now - 100% performance based contracting services for emerging hospitality and restaurant chains. Connect via phone: 912.634.0030 or email: <a href="mailto:SP_Services@Bellsouth.Net" rel="nofollow">SP_Services@Bellsouth.Net</a> </em></div>
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Fred Favolehttp://www.blogger.com/profile/03660595941545767003noreply@blogger.comtag:blogger.com,1999:blog-2275940921728965579.post-33487881649769057322012-09-21T06:34:00.000-07:002012-09-21T06:34:07.417-07:00How Much For CH Butt Steaks?<div style="text-align: justify;">
<strong>F</strong>oodservice purchasing specialists have learned that a majority of food and supply costs for products purchased over a 12-month period can be determined in advance with reasonable accuracy. <br /><br />The planning approach to purchasing starts with a menu mix analysis and usage forecast, which usually consists of a descending dollar report from the distributor and 2-year menu and product price history. <br /><br />The unstable markets of 2011/2012 exhibited short-run fluctuations for many commodities, moved prices for items like bacon and ground beef off the “charts” in terms of costs predictability. However, cost can be managed through tactical actions taken by the buyer with support from suppliers. <br /><br /><em><strong>Now is the time! <br /></strong></em>The timing is perfect (Sept-Oct 2012) for you to secure long-term prices for ground beef, poultry, ribs, pork butts and other commodities to avoid the coming price increases projected from December '12 through Q1-2013. When booking product (securing a firm price for future purchase) is not possible, base your volume purchase and timing decisions on short-term market projections, seasonal trends, and look for buy-in opportunities. Establish a<strong> “</strong>target purchase price<strong>”</strong> using the type of costing formula shown below. </div>
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With some experience, you can assure your food service organization receives an adequate supply at an optimal price even in a tough market. For example, our consulting firm and most established restaurant chains try to anticipate general price increases, project commodity prices and other production and transportation costs prior to negotiating the final price. <br /><br />The foundation for any contracting commitment is an understanding of the <u>total-cost-of-goods</u> pricing model. This knowledge also allows you to identify cost-reduction possibilities. <br /><br />Develop formula based pricing information for high-volume purchases, then project the final selling price from “farm to table”! Keep in mind, the “formula” is not always used as the method of purchase. Many times a firm price is a much better buying choice. The total cost method is solid resource to compare bids, used by everyone from Wal-Mart and Brinker to Avendra and Strategic Purchasing (SPS), to negotiate reductions based on production efficiencies and component costs. <br /><br />This approach will also assist you in developing savings possibilities even in tough buying markets. <br /><br /><strong>Here is an example of a pricing calculation for a portion steak: <br /></strong>Raw Material: Beef Loin, Top Sirloin Butt Steak, Semi Center-Cut, and Boneless U.S.. CH Steer/Heifer Finished Product: 10 oz, CH Top Butt Steak, NAMP #1184A<br /><br /><strong>Pricing Formula</strong></div>
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</strong>Raw Product Cost: 2.25 FOB <br /><br />By-Product Credit : <strong>-</strong> .28 <br /><br />Divided by Yield: <strong>+ </strong>50% <br /><br />Raw Steak Cost: <strong>=</strong> 3.94<br /><br />Profit /Markup Factor <strong>+ </strong>.65 <br /><br />Total FOB Sell Price: = 4.59<br /><br />Freight to Distributor: + .30 <br />Distributor Delivery: +.35<br />Restaurant Price: <strong>$5.24 lb.<br /></strong><br />To Higher Profits!<br /><br />Fred<br /><br /><em>Fred Favole is Founder & President of <u>Strategic Purchasing Services</u> (SPS) America’s most experienced foodservice purchasing firm, providing outsourcing and support services to emerging chains and human-services organizations. Contact: (912) 634-0030 email: <a href="mailto:Favole@Gate.Net">Favole@Gate.Net</a> </em><div style="text-align: left;">
<em>Professional Bio / Client Recommendation: <a href="http://www.linkedin/in/strategicpurchasing">www.linkedIn/in/strategicpurchasing</a><br /></em></div>
Fred Favolehttp://www.blogger.com/profile/03660595941545767003noreply@blogger.com