Franchise Consulting Services for Multi-Unit Restaurants
Business ownership in the restaurant industry is defined by paradoxes:
- Ownership wants quality food at affordable prices
- Product freshness is a must, regardless of seasonal variability
- Cost and customer service are congruent costs of entry – you cannot have one without the other to be successful
- And on the sourcing side, menu choice competes with supplier selectivity
There are thousands of considerations that go into restaurant cost control, and they all stem from the supply chain of the business. Franchise consulting firms must demand strategic sourcing reliability and consistency so that when an external issue arises (such as Mother Nature), there are internal systems and resources to work with in a cost-effective manner (while also ensuring optimal customer service).
Mottos such as "what you want is what you get" and "have it your way" aren't simply slogans for the best brands out there; they are standard expectations that all customers have of their experience at your restaurant. When various market pressures pull franchise businesses in different directions, the supply chain is the key to synergizing them in a way that finds shared gains.
The larger the multi-unit restaurant franchise, the larger the issue of restaurant supply chain management becomes. This is where a team of experts from a franchise consulting firm like Supply Chain Synergy Consultants (SC2) comes into the picture. SC2 works to streamline the multi-unit supply chain in a way that enables the individual units of the food chain to unite in a coherent way. One of the ways we do this is by reviewing in avid detail your distribution programs, your direct manufacturers’ contracts and the freight logistics required to move it through the supply chain. By taking this holistic approach, we provide our clients with a detailed guide to the new opportunities available to them, and how we should approach them to ensure success.
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When you look at “total cost of product,” it breaks down into a model like this:
- Manufacturer FOB Cost – This is the cost of the product at the point of manufacturing. All shipping costs must be paid by the purchasing party, the distribution company
- Freight Cost – This is the cost of moving the product from the FOB point (the manufacturer) to the distribution center
- Distribution Cost – This is the cost the customer pays the distribution company to deliver the product to their place of business
*Depending on your product, the percentages can vary. However, a great number of food service products’ breakdown into the percentages above.
Our franchise consulting firm will focus on all three legs of the product, unlike other consulting firms that focus only on the distribution cost. The distribution cost has the smallest percentage return to the client. SC2 puts a stronger focus on the 93% for cost reductions.
Our franchise consulting services will help you find the manufacturers and distribution companies that have an efficient supply chain who can deliver the product with enough shelf life and create a product where your guest feels they are getting a great value for their money.
Only carefully vetted manufacturers should receive your business, and we can take care of that vetting process for you.
With 20+ affiliated team members and offices in Parker CO and Cumming GA, we are here to serve you across the nation. Contact Mark Hampton directly at (303) 883-3355 or through email at mark.hampton@SC2.guru if you have any questions. Also feel free to fill out our quick and easy contact form to receive a free quote of what we can do for your company!
Contact Mark for a Consultation