Negotiating with your suppliers: 7 techniques for restaurateurs

Don’t accept catalogue prices. The first rule is to dare to ask. Prepare your appointments by knowing your annual volumes per product. A supplier will make an effort if they have visibility on your orders.

Compete intelligently. Having two suppliers for key products (e.g., meat, cheese) secures you and allows you to continuously compare prices. Don’t switch for a few cents if the quality or service (on-time delivery) isn’t there.

Negotiate payment terms, not just the price. Gaining 15 or 30 days of payment terms improves your cash flow, which can be as valuable as a 2% discount.

Think about Year-End Allowances (RFA). If the supplier doesn’t want to lower its face prices, request an annual discount if you reach a certain volume. It’s a valuable bonus for your balance sheet.

Be a good client. Pay by the hour, be courteous with delivery drivers, and make deliveries easier. A supplier will go to more effort for a “easy” and reliable client than for a client who negotiates everything but pays late.

Consolidate your purchases. Focusing your volume with a generalist can give you more leverage than scattering it across 10 specialists. Conversely, the specialist may offer a better price-to-quality ratio on their flagship product.

Review your contracts annually. Energy or raw material prices fluctuate, your rates should follow (and potentially decrease!).