Food For Thought

February 2005

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Food For Thought Cooperative Group Purchasing
February 2005

 

In This Issue
  • ERS Food Price Outlook 2005
  • Prime Vendor or Fixed Margin Agreements: Are They Really What You Think?
  • Customer Service Radar
  • Simplify Your Monthly Inventory with HSG/Eclipse
  • New Website Feature: On the Lighter Side

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    Prime Vendor or Fixed Margin Agreements: Are They Really What You Think?

    If you discovered that one of your employees was receiving a monetary allowance or incentive for purchases made by your restaurant and without your knowledge, what would you think? You would probably be concerned and want to learn more about it.

    If you have a prime vendor or fixed margin arrangement with a large broad line supplier, something similar to this may be happening without your knowledge. No, it's not your chef or manager who is receiving these allowances, it's your supplier. It has been going on for several years now and the practice is growing in the industry. Distributors use sanitized terms like "program money" and "sheltered income" for the practice and seldom discuss this income stream with their "end user partners" or their sales associates.


     
    Customer Service Radar

    By Eric F. Nusbaum, PhD, CHA
    On multiple occasions I have heard my associate Fred Smith praise service personnel who have "it". "It" is difficult to define, but "it" makes customers happy. One facet of "it" is what Fred refers to as 'table radar'. M*A*S*H viewers know that 'Radar' O'Reilly received his nickname because his 'radar' enabled him to know what was going to happen before anyone else did. With 'table radar' a server knows what the guests needs before the guest actually asks for it.


     
    Simplify Your Monthly Inventory with HSG/Eclipse

    Are you spending too much time counting and calculating your monthly inventory? Are your numbers really accurate? HSG can help! HSG is now offering a simple and easy to use inventory module built right into our Eclipse program. Eclipse will provide you with easy to use inventory forms with items arranged in the order that you choose. Data entry is straightforward and your prices are automatically updated each time you place an order.

    If you are an HSG member and would like a FREE trial of the new Eclipse Inventory feature, just give us a call.

     

     
    New Website Feature: On the Lighter Side

    Submitted By Readers Like You
    We thought it would be fun to share some of the Restaurant Humor that people have sent to us over the years. Take a look. Everyone needs a laugh!

     


     
    ERS Food Price Outlook 2005
    In 2005, the all food CPI is forecast to increase 2.5 to 3.5 percent, with a current point estimate of 2.6 percent, as some of the large price increases from 2004 moderate in the next few months. Food-at- home prices are forecast to increase 3.0 to 4.0 percent, while food-away-from-home prices are forecast to increase 2.5 to 3.5 percent. The all food CPI increased 3.4 percent in 2004 with food-away- from-home prices increasing 3.0 percent and food-at- home prices up 3.8 percent, the highest one year increase since 1990.

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    James R. Covart jcovart@hsgpurchasing.com
    phone: 603 669-6330

     

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