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Top 4 Food Service Spending Management Myths

Ryan Young
Ryan Young | April 23, 2021

Managing spend is an important part of food service success. Here are the top four myths – as well as the facts – when it comes to spend management.


MYTH: A pricing comparison is always an accurate illustration of how much money can be saved.

FACT: There are several variables that can skew a price comparison to show a larger savings opportunity than may actually exist. Some of these variables include: the time pricing is conducted, ensure you are making an apples-to-apples comparison, accuracy in case ratio/yields and pricing on catch weight items versus average weight.


MYTH: The cost of food is the largest expense for a senior living community or restaurant.

FACT: Food is the second-largest expense. Labor is the largest. So, finding products that can help you save on labor costs can actually contribute to your spend management success.


MYTH: A senior living community or restaurant should have the same food budget every month.

FACT: A food budget often varies from month-to-month based on census (or traffic) and/or meals served. It is also important to note that if a location receives one delivery per week, there will be four months with five deliveries and eight months with four deliveries. If a location receives two deliveries per week, there will be eight months with nine deliveries and four months with
eight deliveries. These are important factors to consider when analyzing your budget.


MYTH: Purchasing under a Group Purchasing Organization (GPO) always offers the best pricing.

FACT: Some distributors, such as Martin Bros., have affiliations that allow them to offer competitive pricing based on combined volumes. These affiliations also allow the distributor to provide a larger selection of product options. This flexibility helps you to maintain competitive costs without having to compromise quality for a better price.

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Find out about all the ways Martin Bros. can help to improve your profit margins and make your food service business financially healthy.


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