At the start of 2018, hospitality analysts’ predictions were that any industry practitioners should buckle up for the bumpy road ahead. Unfortunately, many operators have already found out just how bumpy that road has been.
We have already seen a number of high profile Restaurant Groups in trouble with multiple closures and loss of jobs. 10 years ago, we saw many local pubs get swallowed up by growing Restaurant brands and now some of those brands have seen their own commercial mountains too big to climb. Ironically, this has also gone full circle as we have seen a resurgence in ‘ye olde English pub!’. There are multiple factors that have influenced the casual dining market. Increases to minimum wage and fears over Brexit (which have affected recruitment and overseas investment), large supplier’s hygiene practices becoming front-page news and spiraling food costs – all adding to uncertainty in our beloved Hospitality marketplace.
The advantages of hospitality e-procurement software
We meet smart operators every day, who are breaking down this overwhelming Tsunami of challenges into bite-size projects that they can control, and indeed turn into an opportunity. The smart operators have identified that the challenge they can control quickest and add value to their business (and bring the focus back to growth) is to control spiralling food costs with a live e-procurement software partner.
The businesses that are growing in these troubled times have live supplier price control with an SLA (Service Level Agreement) in place with their suppliers. This means that suppliers have to request price changes (disputes mean that buyers and suppliers are talking before price changes rather than arguing about changes to statements), putting the smart operators in control of the value of delivered goods, which is the agreed invoice value for payment too.
Smart operators are turning the tide with control of their purchasing spend and saving time with invoice adjustments too. These are features that we have, and are constantly developing on the Caternet system. Please get in touch if you would like to discuss this or schedule a demo.