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Tackle Profits With A New Foodservice Supply Plan

By Fred Favole

Today’s discussion tackles the question of whether a food service organization can change the new supply-chain enough to reduce food costs and thereby increase profits. The answer depends on whether or not you can distinguish between a “distributor managed pricing program” from a true-cost of goods model which correlates production costs, commodity markets with finished goods and delivered pricing. Most emerging restaurant chains pay less attention to true costs than they do pressing the distributor for lower delivery margins and suppliers for rebates. From my 20 years consulting with more than 60 restaurant and hotel...

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