What if, for an entire month, a restaurant ceased deliveries from its food wholesalers and got its food and supplies almost exclusively from Restaurant Depot, the cash-and-carry wholesaler? What would be the effect on food cost? How much money would be saved? What would happen to food quality?
A local restaurant owner did just that recently and the results are eye-opening. I’m no shill for Restaurant Depot, but you have to admit it’s a good business for the times…a place where restaurant owners can go seven days a week to supplement their inventory, or even provide their inventory. With prices sometimes 20-30% lower than traditional wholesalers, the benefits are obvious and immediate, even after you factor in time and miles. (In this case, the restaurant was located closeby.) Quality, freshness and product lines are first-rate, despite a tendency to think otherwise.
So exactly how did the restaurant fare? Food cost dropped from 32% to nearly 27%--an impossible drop, an "accounting error" type of drop. (Owners rejoice when food costs drop by a mere fraction.)
For example, if your restaurant grosses 1M per year, a ½% drop should put $5,000 to the bottom line, a 5% drop, $50,000, which incidentally is the amount our owner will potentially save if he continues his "experiment" for a year. He reports that saving that kind of money will keep him in business this year...that Restaurant Depot will keep him in business this year. Another benefit... he’s sleeping through the night. – George Mahe
