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.
#1
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.
#2
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.
#3
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.
#4
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.
