When it comes to procurement and buying, now more than ever, restaurants need to save money and be more efficient with their purchasing.
Few have said that running a restaurant is easy. In fact, it can be downright challenging. And, when you factor in the difficulties ushered in by supply and labor challenges, these days it can be close to impossible to run a successful and profitable business. In truth, a lot of operators are living on the edge, as in marginally, which ironically is the space that can make or break the bank.
One of the most vital ways to increase an operator’s profit margin is to lower overall spending. Some ways to cut costs include: reducing food waste, keeping track of inventory, and only purchasing what is needed.
Sounds simple enough, right?
Unfortunately, restaurants have been following the same unwritten rules when it comes to purchasing for years, yet the old ways are time-consuming and inefficient, and time is money. Combine that with outdated thinking that was hyper-focused on how tech only improved efficiency for the FOH.
But what about BOH? There is a tremendous opportunity to utilize tech for the BOH to reduce costs and increase efficiency.
When it comes to procurement and buying, now more than ever, restaurants need to save money and be more efficient with their purchasing. But how?
For many operators, the answer is to take a fresh look at what technology solutions can improve their processes while providing them with better insights into their businesses. More specifically, restaurants should seek out and implement BOH Management Services that utilize ERP.
Enterprise Resource Planning (ERP) refers to a type of software that businesses can use to manage day-to-day business activities such as procurement, accounting, project management, and supply chain operations. Research finds that:
- On average an ERP can reduce overall operational costs by 23% and administrative costs by 22%.
- A whopping 95% of businesses say they have major operational improvements after implementing an ERP.
When it comes to procurement and industry-leading EPRs, a few Branded Portfolio Companies are shaking things up by providing cutting-edge technology and serving up solutions industry-wide.
CUT + DRY
Cut+Dry was born to solve this problem for restaurants, distributors, and manufacturers in support of the people and places that feed us by offering solutions across the board.
Cut & Dry connects with all foodservice ERPs or accounting systems to reduce errors and eliminate manual data entry, so operators can do more with their current teams.
But for the team at Cut+Dry, it’s not just about providing solutions for today, it’s also about making a difference in the future.
Mani Kulasooriya, Co-Founder & CEO of Cut+Dry says, “We have an opportunity to digitize the foodservice supply chain, which translates to a more efficient, transparent, and less wasteful industry. We see tremendous economic value generated by technology solutions, resulting in speed of operations, cost savings, and environmental impact.”
Cut & Dry, is the foodservice industry’s new way to order, receive and pay. Created and led by a team of foodservice fanatics with decades of experience in hospitality technology, restaurant operations, wholesale food distribution, and food analytics.
Another leader in the space is Simple, which is an enterprise technology platform that functions as a digital marketplace, providing real-time, targeted, and data-driven connectivity between buyers and sellers. The platform offers unique and differentiable value to all the players in the foodservice ecosystem: operators (restaurants), distributors, sales reps, and manufacturers/suppliers. Restaurants say goodbye to razor-thin margins. Distributors and Manufacturers say hello to marketing and sales efficiencies they only dream about.
Simply stated- Simple brings Manufacturers, Distributors and Restauranteurs together on the industry’s first fully integrated digital marketplace. Enabling everyone to efficiently discover, connect and transact online.
One Platform. Endless Opportunity. And users are taking notice.
Michael Mina, Founder of Mina Group says, “Simple has changed the way I approach the purchasing and ordering process for my company.”
Effective procurement processes are vital for restaurant operations. They help operators strategically approach food and supply chain purchasing decisions while saving money.
Before the pandemic, many restaurants simply accepted food loss costs and took both labor and supply chain resources for granted. In fact, many operators didn’t think about the logistics industry much at all.
Today, however, practically everyone – from manufacturers to retailers and consumers – has been impacted by the rise in food costs, labor shortages, and the supply chain, and they’ve likely gained a lot more knowledge and appreciation for the industry.
Thanks to Enterprise Resource Planning (ERP) and nearly turn-key BOH Management Services, the previous historical challenges of implementing strong procurement, which was a complicated and labor-intensive process, especially for smaller brands or Mom and Pop Shops- are literally a thing of the past.
Times have changed but luckily the technology has changed for the better as well, positioning restaurants for future-proof procurement. Ultimately saving money, and offering healthier profit margins – pronounced more revenue.
At Branded, we subscribe to the theory that it takes a village. If you’re interested in exploring investment opportunities with Branded, please contact us directly.