Blog

Ask these five questions when selecting supply chain partners to grow your restaurant catering, delivery business

There are five key things restaurant entrepreneurs, leaders and operators should consider before entering into any business relationship with a third party supplier to help them grow their takeout, delivery and catering operations.

March 20, 2015 by Erle Dardick — CEO, Monkeymedia

During the last 18 years of my career, I have harvested a lot of insights from my time on the road with MonkeyMedia Software and The Catering Institute. My travels take me away from home close to forty percent of my time. This means I spend a lot of time in the field working on restaurant catering with operators, leaders and front line team members from restaurant companies both large and small. 

I love working getting to know the great brands and people we work with, and I am always humbled by the opportunities they give me to see behind the scenes of each of their operations. What I've learned is that when it comes to building a successful off-premise business strategy, supplier partnerships are key, whether it be for financing vehicles, new packaging, additional equipment, digital advertising, cloud-based technology or just acquiring raw materials. As we all know, these partnerships are based on mutual trust and respect. 

Our supply chain community is rich in resources and depth and can really help restaurant companies do more takeout, delivery and catering. With that said, I believe there are five key things restaurant entrepreneurs, leaders and operators should consider before entering into any business relationship with a third party supplier to help them grow their takeout, delivery and catering operations.

1. How deep is their takeout, delivery and catering industry expertise?  

I see so many companies in the marketplace trying to sell their services into the restaurant and foodservice vertical.  In so many cases, they also sell their products and services into other industries.  As a matter of fact, I have seen time and time again that companies that are successful in other industries try to sell their wares into foodservice because they think it is fertile ground. This especially holds true in the technology sector.  I have learned that solutions that work for other industries don’t necessarily apply to the foodservice industry, and unless they have a deep understanding of foodservice and even more important, the off-premise business strategy of restaurants, I’d suggest you steer clear.  They are learning on “your dime” and your time is far too valuable.  Find a supplier who really understands your business and one that has gone through the trouble to invest in becoming experts at takeout, delivery and catering.

2. Will they play to your strengths?  

Just as great sports figures work with trainers who understand how to capitalize on their skills and assets, so should you. You want a trusted supplier that knows how to leverage your strengths and support your weaknesses. The restaurant industry is facing a time of unprecedented competition from grocery and convenience stores who are all going after the same consumer dollar. Any edge you can gain over your competition could be the difference between growth and long-term success. Work with suppliers that not only provide you with products and services, but also add value to your takeout, delivery and catering business strategy.  Work with domain experts where possible.

3. Do you have a clearly defined role in the new partnership?  

Eliminate the confusion by establishing clearly defined roles and responsibilities for each party.  At MonkeyMedia Software and The Catering Institute we make sure every brand we work with has an outline of the services we provide, the methodology we are going to use to provide those services and what is expected from the customer. A good supplier will share catering best practices with your organization and they are in a unique position to help because of the experience they gain in the field by working with many companies. Select a supplier that has strong policies and procedures and make sure your organization follows their recommendations.  So often I see restaurant companies that are trying to do it “their own way” and suppliers that don’t push back on their customers.  This can be a critical error because poor workflow and practices can creep in to the process.

4. Do you understand how to get your risk out?  

In any catering supply chain partnership there is always a level of risk. The key is to decrease your risk for the sake of the brand you're working to grow. Make sure you understand what your risks are early on and how you can protect yourself from the vulnerabilities that come from being sunk into one single supplier. Establish the right processes, methods and tools for handling the risks and then reassess them as you continue to move forward.

5. Is your supply chain partner culturally aligned?  

Have a conversation early on about how you see the partnership and ask your supplier to also provide their viewpoint. This way, everyone will understand the perspective of the other party so conflicting ideologies can be worked out in advance. This is key to ensuring everyone is on the same page at the start of the agreement rather than each party operating under false assumptions and backtracking later on. 

If these questions sound like you're navigating a relationship, that's because you are. Working with a third-party supplier to grow takeout, delivery and catering requires a solid understanding of who they are, what they know and how they can help carry your goals forward. 

At MonkeyMedia Software and The Catering Institute we take our partnerships very seriously because our mission is well defined and we have stayed true to our core values for the past 18 years. We are clear about who we are as a company, where we're going and how we can help restaurant operators grow sales and increase profits by feeding their customers where they live work and play.

Let’s talk catering!
 

About Erle Dardick

---

None

Connect with Erle: