Buying is a highly specialized job. Not just anyone can do it, many try.

Today's foodservice buyer must know not only a lot about the products he purchases, be he must know the commodity markets, bid procedures, negotiating techniques, how proteins are processed, and the seasonal availability of all products (determines price and quality).

The job involves planning, forecasting, organizing, and a good buyer never stop learning, always seeking to understand menu applications and to update knowledge.  The lost technique of value analysis can improve product selection and bottom-line profits.

The idea is to precisely define menu and purchasing needs and buy products that best satisfy them. Value is based on quality and price and is often expressed in a business formula dating back to when I started in foodservice. (fresh dino wings were my favorite, usually spec'd the 14DN Choice Avisaurus!) 

 

It's Your Money - Here's the Formula!

V = Q/P. If the price (P) increases but quality (Q) doesn’t, value (V) is less. Of course, if Q increases but P does not, then V increases. The idea is that it’s important to judge value and you can’t do that if you don’t recognize value. You can learn to judge value by keeping records, checking the dumpster, talking to waite staff and of course consulting with the operations and culinary group.

Value analysis can be product yield or case pack weight; for example, maybe you are not selling enough chili to warrant buying a #10 can, which means changing to a #303 at a slightly higher price, represents a better value.

Do you always require #1 tomatoes for back of the house prep/recipe items?   Are you paying off your juice machine, custard maker, waffle irons, roll-towels dispensers and coffee equipment by adding to the price of the product? Do the math and you may find a one-time capitol investment in equipment makes more sense.

Our consulting work with the non-appropriate funds military group in San Antonio proved there is a distinct savings advantage on protein buying to eliminate bulk, weight, and waste in bulk purchases. We moved from carcass and wholesale beef cuts (sub-primal) to boneless, well-trimmed meat,  separated to meet specific cooking needs.

The lost art of using value analysis and technical purchasing can improve product selections and back-of-the house efficiency.  It’s true that the process can really occupy more time than –operations or culinary staff can devout,  That’s why you should value the products you buy and allow your buyer or purchasing staff the time to bring a systematic approach to your business. 

Higher Profits!                                                                                                                                                                  Fred

Fred Favole is Founder & President of Strategic Purchasing Services, a firm specializing in purchasing outsourcing, distribution system bids and strategic product sourcing and development.  He can be reached at: P: 912.634.0030, email: favole@gate.net or connect on LinkedIN

Views: 51

Comment

You need to be a member of FohBoh to add comments!

Join FohBoh

Advertisments

 

DEPARTMENTS

Social Wine Club for Craft Wineries

Smartbrief

Report: Consumers want more protein, need more education

A majority of U.S.  -More

California Walnut Beet Carpaccio Flatbread
Jump start their appetites with this fabulous flatbread appetizer topped with beets, goat cheese, arugula and California Walnuts. For this and more great recipes, visit http://www.walnuts.org/food-professionals/trending-recipes/.

Vegetables take over dessert menus

Top pastry chefs in the U.S.  -More

Rising takeout demand drives new Mama Fu's footprint

Austin, Texas-based Mama Fu's Asian House debuted a smaller footprint unit focused on feeding a growing demand for takeout an -More

JOBS & CAREERS

Posting a job or finding a job starts here at FohBoh. Call us about special $25 posting packages to syndicate across all major jobs boards.

National News

Souplantation & Sweet Tomatoes Certified As Nation's Largest 'Green' Restaurant Chain

National Group Salutes Country's Only Large Restaurant Group to be 'Certified Green Restaurants®'

National Restaurant Association and EatStreet Release Online Ordering Guide

The National Restaurant Association and EatStreet have released a free educational guide focusing on online ordering and emerging restaurant technology trends.

Boyd's Coffee Launches Single-Cup Coffees For Retail And Foodservice

The coffees come in a variety of roast levels and include organic and Rainforest Alliance Certified™ options: French No. 6®, Red Wagon® Organic Coffee, Good Morning™, Hi-Rev® (delivers more caffeine), and Lost Lake™ Decaf Organic Coffee.

Arby's Announces Development Deals With New And Existing Franchisees

ARG recently sold 14 company-operated restaurants in Tampa, FL to Mosaic Investments, Inc. (Mosaic), a fully integrated investment firm based in Atlanta. In addition to remodeling existing locations slated to commence at the end of 2014, Mosaic has committed to build 13 new Arby's restaurants in the Tampa area over the next nine years.

Smoothie King Appoints Vice President Of Business Development To Drive Brand's Expansion Across The U.S.

Prior to joining Smoothie King, Bruno served as vice president of retail sales, operations and franchise development for Fannie May Fine Chocolates, a division of 1800Flowers.com, where he oversaw a $69.5 million retail division that included 100 corporate stores and 45 franchised stores.

CROWD FUNDING

If you are looking for capital to start or grow your restaurant, create the next 501c3, develop and launch the next app for the restaurant industry,or want to help your peers in some meaningful way, we want to know about it.

TED TALKS VIDEO

TED: Michel Laberge: How synchronized hammer strikes could generate nuclear fusion - Michel Laberge (2014)

Our energy future depends on nuclear fusion, says Michel Laberge. The plasma physicist runs a small company with a big idea for a new type of nuclear reactor that could produce clean, cheap energy. His secret recipe? High speeds, scorching temperatures and crushing pressure. In this hopeful talk, he explains how nuclear fusion might be just around the corner.

TED: Sarah Lewis: Embrace the near win - Sarah Lewis (2014)

At her first museum job, art historian Sarah Lewis noticed something important about an artist she was studying: Not every artwork was a total masterpiece. She asks us to consider the role of the almost-failure, the near win, in our own lives. In our pursuit of success and mastery, is it actually our near wins that push us forward?

TED: Matthew Carter: My life in typefaces - Matthew Carter (2014)

Pick up a book, magazine or screen, and more than likely you'll come across some typography designed by Matthew Carter. In this charming talk, the man behind typefaces such as Verdana, Georgia and Bell Centennial (designed just for phone books -- remember them?), takes us on a spin through a career focused on the very last pixel of each letter of a font.

TED: Jeremy Kasdin: The flower-shaped starshade that might help us detect Earth-like planets - Jeremy Kasdin (2014)

Astronomers believe that every star in the galaxy has a planet, one fifth of which might harbor life. Only we haven't seen any of them -- yet. Jeremy Kasdin and his team are looking to change that with the design and engineering of an extraordinary piece of equipment: a flower petal-shaped "starshade" positioned 50,000 km from a telescope to enable imaging of planets about distant stars. It is, he says, the "coolest possible science."

© 2014   Created by FohBoh.

Badges  |  Report an Issue  |  Terms of Service