up button image
Company Perspectives

How a Food Broker Can Help You Reduce Costs at Your Restaurant

Did You Know a Food Broker Can Save You Money

cost reduction abstract

f you want to run your restaurant efficiently and still turn a good profit, you need to keep the budget for food costs within a certain range. Most of the time, restaurants will try to keep that range between 28% and 35%. What your spending cost is on your restaurant's food supply will greatly depend on the type of restaurant you have, where you are in operational phases, and the type of food you're serving to your customers.

Whether you're starting out in the restaurant industry or you're a seasoned owner, working with a food broker can help to save you money. There is a consultant for everything and food is no different.

Food brokers are the best-kept secret of successful restaurants and we're going to explain exactly how they can help reduce your food purchase or placement costs. Keep reading to learn how to safeguard your food budget and optimize the way you do business behind the scenes.

What Is a Food Broker and What Do They Do?

A food broker is exactly as they sound. They are specialists that work with grocery stores to negotiate the best rates to sell the food you make and offer. They are experts in negotiation and their primary job is to get your restaurant supply into about any type of store that sells food products.

Food brokers are the best-kept secret of successful restaurants and we're going to explain exactly how they can help reduce your food purchase or placement costs.

You will notice that some brokers will have a specialty where they focus on working with certain types of products. Others will have flexible or diverse skill sets and work with all product types and brands. For example, if you're working with a meat broker, those specialists will include any individual or firm that sells and buys meat products.

So, they will buy meat, whole carcasses, or parts of a carcass. When they make those meat purchases they will negotiate the sales on behalf of the restaurant they represent. This will often give restaurant owners a leg up on fresh products at a good rate or a good deal for having their products featured in a certain store or marketplace.

How Can They Save Your Restaurant Money?

The restaurant business isn't always easy to navigate depending on your location. The industry is heavily saturated depending on the type of food you sell and it's highly competitive. What this means for business owners is that you have to become more business savvy and learn to be more creative if you want to be ahead of your competitors.

To have growth that is actually sustainable, you need to save money where you can, offer food choices that attract customers, and have your products at the forefront of the eye of consumers. This is where food brokers come in as they work to save you money. They do this by negotiating food deals and prices for the products you offer.

Whether you're a commercial supplier, a small restaurant, or have a chain presence, a food brokerage can be your ticket to better success rates in a competitive market. You have to also consider volume. Food brokerage firms have a designated network of connections in the industry.

This means that they can help you move your products around more while offering consumers competitive rates that can't be ignored. One of the top ways that a food broker will save you money though, is that they specialize in what you do.

They already know your product and your industry so their strategic negotiation plans are already tailored to the business you do. This will allow you to focus more on business operations, food production, and customer service.

Is Hiring a Food Broker Expensive?

A food broker will often get paid by commission. This gives them more incentive to get your products into stores at the best rates. How it works is that they will charge a commission fee for the overall net price of any food products that were sold.

So, overall, you may be looking at paying a 5% to 10% fee for the net amount of your invoices. This will differ by the food supply company you work with though as many food brokers will prefer a monthly retainer instead. This is more often the case when you want to work with a broker continuously rather than on one-time deals.

What's even better is that this type of consultant doesn't only negotiate and coordinate getting your food onto the shelves of different storefronts. They oftentimes will also handle marketing for your products and demo coordination for what you sell as well. All of these perks wrapped into one role will save you money from having to hire two separate professionals to do those same tasks and do them well.

The main thing that you'll notice is that you'll be getting more from a broker than you would think. The savings they can put into place for you and the connections that they have easily level their worth. Not to mention, they can work for buyers as well as food producers making what they offer very versatile.

Reducing Food Prices Without Sacrificing the Quality

A food broker might not have been someone that you knew you needed on your team. It turns out, with the money you save to run your business the way you want, you can't afford to not work with a knowledgeable food consultant. "It's All Goods" is a nationally-renowned food brokerage serving customers across the country.

If you're a food connoisseur or you simply want to focus on your food budget and get the most out of it, we're ready to work with you. Get in touch with us today to make the best move for your restaurant.

March 10, 2023