Top Tips for Signing a Contract with Food And Beverage Suppliers

Restaurants are doing more business than ever before, and everybody generally sees the glamorous side of the most posh eateries. But behind the scenes, restaurant owners have to take a lot of responsibility.

One of the most important responsibilities is to ensure the continuous supply of food & beverages. The delicious meal you had at your last restaurant visit did not come from thin air. Owners have to make contractual agreements with food & beverage suppliers.

Contract talks can get pretty tricky, especially if you are new to the business. With the following tips however, you can sail through the contract talks without any hiccups.

Discussing Terms of Payment

The presence of numerous suppliers can make picking one a mightily difficult task. Thankfully however, suppliers generally let out price lists of various food & beverage items. Do a detailed and comparative study of these lists and then think of an offer to make to the suppliers. Thorough comparison can save you a lot of money.

Maintain a Good Relationship

Try to approach suppliers with a positive frame of mind and be courteous in your behavior. A good relationship between you and the supplier might turn out to be immensely profitable in the long run, as suppliers tend to offer concessions to loyal, long-term associates.

Sorting out Delivery Terms

Delivery is critical to the functioning of your restaurant. During peak seasons and occasions, you can expect your restaurant to be brimming with people. In such pressure situations, delivery problems are the last thing you would want. Suppliers have the habit of making tall claims about making their deliveries on time. But before you sign on that dotted line, talk to some of the suppliers’ previous clients about the experiences they had. This will tell you how truthful the suppliers are.

Pick a Supplier with Competition

If a supplier has monopoly in a certain area, it’s better for you to steer clear and look for alternatives. Look out for suppliers who have healthy competitors in the market. Suppliers with competitors always have a thing or two to prove about themselves and always show better attitude and commitment.

Returnable Packaging Issues

Bottles, containers and other such items are destined for the trash can. But it’s the supplier’s responsibility. Vehicles should be sent by the supplier to pick these ‘returnable packages’, but in a lot of cases, the disposal of the packages is left to the restaurant owners and management. If you own a small restaurant, this will not be a hindrance. But with growth and expansion, there can be an overload of returnable packages. Discuss all terms regarding returnable packaging beforehand.

All in all, it can be said that a positive and steady relationship between restaurants and food & beverage suppliers can only be good for the business of both parties.