How to Choose a Supplier for Your Restaurant

Choosing the right suppliers is crucial to the success of your restaurant. Anyone who has ever started a restaurant business knows that becoming successful in this competitive industry is more than just offering good food. It is also important that you know how to run the business side of your restaurant. Part of that is knowing how to pick the right suppliers and building great relationships with them.

Teaming up with the right suppliers can help you stay on budget while providing the best equipment and raw materials for preparing your products. Having a good supplier-restaurant relationship also improves efficiency as the supplier understands your needs and is in a better position to provide them. On the other hand, suppliers who aren’t the right fit can put a huge dent on your budget, reduce your efficiency, and ultimately cost you your investment.

It is of utmost importance, therefore, that you conduct thorough research and use be discriminating when looking for suppliers. Here are a few tips to make the search easier.

1. Identify your needs.

Create an exhaustive list of everything you need for your restaurant. Include everything from major pieces of equipment such as a commercial refrigerator to small items many first-time restaurant owners overlook like napkin holders. This helps you see a complete sense of how much you need to allocate for procuring supplies. You don’t want to end up feeling surprised once you later realize how much you really need to spend for all the equipment and materials to start.

Also, identify how you are going to use each equipment or material in your business. If you put undercounter refrigeration units in your list, what do you need them for? Do you need them because you have limited space for full-size refrigerators? Do you need them to keep your restaurant’s bar well-stocked? Do the same for raw materials. For example, if you need tomatoes to add to salads, you want to look for fresh tomatoes. If you plan to make huge batches of marinara sauce, you can still use older but still good tomatoes.

2. Find a commercial equipment supplier.

Always look for commercial-grade kitchen equipment. These are much more heavy-duty than kitchen equipment made for home use and will last long through many years of abuse. They also have extra features that are typically not found in home kitchen appliance. For example, commercial mixers typically have attachment hubs that let you attach accessories that do more than meat grinding, something you won’t normally find in a home mixer.

The deal with equipment, though, is they eventually break down due to wear and tear. Manufacturers and suppliers handle this issue by offering attractive warranties for their items. When looking for equipment suppliers, examine the quality of the equipment and study the terms of the warranty. How long will the warranty be in effect? What benefits are offered? Does it offer a warranty for repairs, replacements, and labor?

Lastly, look at the long-term costs of keeping your equipment. Refrigeration and freezer units such as ice machines, bar coolers, and walk in freezers work more during the hot summer months. They consume more energy to maintain the cold temperatures of the interior and, therefore, cost more to maintain during the hotter parts of the year.

3. Find a food supplier.

Decide whether you want to get a large or local supplier. Going local has recently become one of the biggest trends in the food service industry. Studies show that customers prefer to support establishments that work with local suppliers and support the local economy. The major advantage of partnering with local suppliers is the ability to offer high-quality, fresh food. Produce doesn’t have to travel 1,500 miles to get to your restaurant. It could just be sitting a few minutes from your door.

On the other hand, large suppliers with a nationwide base of customers have the ability to offer bulk prices and big discounts. They also often have a bigger selection of items, which gives you the ability to customize your products more. There’s a good chance that you can source most, if not all, of your food supplies from a single large supplier.

Most restaurants typically have a mix of local and large suppliers. While employing local suppliers allows you to prepare signature dishes made from local ingredients, many businesses will find they still have to turn to large suppliers for other items.

4. Communication is key.

Because you’ll be interacting with your food suppliers regularly, you want to find suppliers who are friendly, approachable, and easy to deal with. Clear and prompt communication is vital to any good business relationship. You want to establish a good relationship not just with the managers but also with the staff. These are the people on-the-ground and are interacting with your business more frequently than their bosses.

5. Find ways to maximize your budget.

Quality and cost are two sides of the coin. For startup restaurants, however, it is tempting to go for more affordable equipment and pay for upgrades down the line. One way you can do this is to ask around for local establishments that may have closed or are looking to sell their used equipment for a fraction of the price of brand new supplies. You can also look up auction websites such as eBay or Craigslist for pre-owned pieces. The downside, however, is that second-hand pieces of equipment may no longer come with a warranty. There is also a bigger chance they will break down or fall apart more easily just because they have been exposed to more wear and tear.

For raw materials, some suppliers offer a credit period for startup restaurants that allow you to get the items on credit. The period typically lasts 15 to 30 days and then you’re expected to pay up with the money you made at your restaurant. There is, of course, the risk of potentially racking up debt if you are not able to pay within the credit period.