Lee Plotkin's Page

I'm certain that most, if not all of you have been greatly impacted in some way by the rising costs of commodities and supplies. Most of these costs are expected to continue their rise. It's been brutal! Supply cost increases coupled with reduced guest counts are making it tough.

What can you do to remain profitable? This month, let's explore where opportunity can be found for relief without cutting quality.

A few of the largest areas of impact have to do with the intangibles…

Is your distributor a true partner or just an order taker?

Check out these key aspects that can illustrate a good, valuable restaurateur-distributor partnership.  Gauge if your supplier is fulfilling basic customer needs on your behalf:

• Increasing profits, by reducing costs.  A great partner will suggest new menu ideas from their product line.  They will pass along cost savings opportunities and labor saving best practices they’ve come across, including…

One of the more frequent questions being asked by restaurateurs right now is how to protect profit margins while maintaining quality, especially with what we are experiencing in the beef market right now.  Some facts surrounding the state of the market may be in order first.

Most of us know that there has been a fairly large reduction in cattle supply.  Comparing last month to last year at this time, we are probably looking at about a 12% overall decrease. 

The largest factor…

This is the time of year when the major crops have already been harvested, and produce companies are working with the farmers on contracting.  Produce companies are essentially committing to acres of key crops and by doing so can lock in pricing with those farms for an extended period of time.

Some of the more stable crops are locked in for a one year period (with escalator clauses in the event of an "Act of God").  Others, like avocados (where the market is more volatile)…