Large chain restaurants have the negotiation power to keep their food costs low. But for smaller, independent restaurants, that’s not the case. Independent restaurants typically spend as much as 28% to 35% of their total costs on food. Here, culinary entrepreneur Paul Bulau weighs in on how restaurants can use new technology to lower food costs and increase profit.
Price Comparison Technology: An Indispensable Tool
Historically, restaurant owners have been wary of tech companies venturing into the world of food service. It’s for good reason — these companies often push restaurateurs to purchase software that solves no problems at all.
However, price comparison technology is a tool that solves a very real problem. With this technology, restaurant owners can see what different vendors are charging for the same food items. If they’re currently overpaying, they’ll have the opportunity to correct the issue. And going forward, they can quickly find and purchase their usual items for better prices.
Saving money is always a good thing for independent restaurants, but it’s more critical now than ever. The staggering inflation of food prices stretches already-stressed budgets, putting countless businesses at risk of financial insecurity. Price comparison technology might not solve the crisis of food inflation, but it can soften its impact on restaurants.
How Independent Restaurants Can Make the Switch
Price comparison tech might be helpful, but as any restaurant owner knows, switching over to any new process is going to take time and effort. The first step is an investigation — restaurant owners should take a careful look at what they’re paying for food now versus what they could be paying.
Some owners may hesitate to break it off with their current distributors. Many large distributors lure in independent restaurants with deep discounts on certain staples. But most of them simply overcharge on other items to make up the difference. When it comes to choosing distributors, let money, not emotion, be your guide.
Many independent restaurants hesitate to make major changes, especially when those changes come from the tech community. In order to secure a better financial future for their businesses, restaurant owners may need to take the uncomfortable step of overcoming their bias toward tech companies.
The Future of Food Cost Management?
There’s no magic bullet that can instantly solve all of the issues facing the restaurant industry today. But as Paul Bulau explains, price comparison technology has the potential to solve a problem that has long put independent restaurants at a disadvantage. With an analytical eye and a willingness to make a change, any restaurateur can find better food cost savings than ever before.
About Paul Bulau
Paul Bulau is a culinary entrepreneur, business founder, and company owner/operator known for operational success, collaboration, and team development.
After earning a degree in Culinary Arts and Restaurant Management from the Scottsdale Culinary Institute, Paul launched, grew, and sold his first business. For the past 25 years, Paul has served in several management roles with a premier, on-site restaurant company.
