Many vendors have started adding fuel surcharges to invoices. Some have chosen to add a flat charge at the bottom of each invoice while others have added a variable charge based on the fluctuation in fuel costs. One of our distributors is surcharging each item individually, whether it is a 6 oz. box of toothpicks or a 50 lb. case of tomatoes. Many of the charges are based purely on a “what the market will bear” strategy with no connection to actual fuel cost increases. Can you imagine how guest would respond to an energy surcharge on guest checks? “I’m sorry sir, but today is a particularly warm day so we are adding a $1.00 surcharge to you check to cover our increased air conditioning costs.”

To us, fuel surcharges have no place on invoices. That is not to say the increased cost of diesel fuel, or the increased cost of all energy for that matter, will not be passed along to operators. Of course they will. It is only a question of how it is done.

At HSG, we make the large majority of purchasing decisions based on a bid system. If a supplier has to increase their bid price because diesel fuel or any other business expense for that matter has increased, than that is what they should do. Submitting a low bid price that does not accurately reflect the total cost of the product and then trying to nickel and dime the price upwards at the time of purchase is not the proper way. A bid price should be all inclusive and reflect a supplier’s true invoice price.

At HSG we do some long term contracts on high volume items where we “lock in” prices for a long period of time; often a year. These contracts are usually three party agreements. First, the FOB price of the product is negotiated by HSG with the packer or producer. Next a markup or margin is negotiated with the distributor to cover their services (warehousing, handling, billing and local delivery etc.) and profit. Then the actual cost of freight to get the product from the packer to the distributor is added. The freight cost can fluctuate. This proves to be a fair system for all three parties.

How you handle fuel surcharges in your business is up to you. What we recommend to our clients is that they contact their suppliers and discuss the issue with them. They should remind their vendor that purchasing decisions are made based on the bid price for each item that the vendor submits and that the bid price should reflect the total invoice price of an item, including any surcharges. Most vendors will remove the surcharge. If a vendor will not, then a client must decide whether to pay the surcharge or just use a different vendor who includes the full cost of an item in their price. A note attached to the payment check can also be used to explain your policy to suppliers.

Pumpkins are believed to have originated in North America. Seeds from related plants have been found in Mexico dating as far back as 7000 to 5500 B.C.

References to pumpkins date back many centuries. The name pumpkin originated from the Greek word for "large melon" which is "pepon." "Pepon" was changed by the French into "pompon." The English changed "pompon" to "Pumpion." American colonists changed "pumpion" into "pumpkin."

Native American Indians used pumpkin as a staple in their diets centuries before the pilgrims landed. They also dried strips of pumpkin and wove them into mats. Indians would also roast long strips of pumpkin on the open fire and eat them. When white settlers arrived, they saw the pumpkins grown by the Indians and pumpkin soon became a staple in their diets. As today, early settlers used them in a wide variety of recipes from desserts to stews and soups. The origin of pumpkin pie is thought to have occurred when the colonists sliced off the pumpkin top, removed the seeds, and then filled it with milk, spices and honey. The pumpkin was then baked in the hot ashes of a dying fire.

Hospitality Services Group works hard to establish long term relationships with some of the nations best growers, packers and producers. We have established several contracts that allow our clients to purchase "name brand" products at below market prices. cost.

Note:The following is provided by Ken's Foods, Inc.:

It all started back in 1941, when Ken and Florence Hanna decided to open Ken's Steak House in Framingham, Massachusetts. Steaks, of course, were going to be their specialty. But both Ken and Florence wanted something special to serve alongside. That something was a great salad, tossed with an even greater dressing.

According to Ken, "It got to the point where our salads were probably more popular than our steaks. And pretty soon people were asking why I didn't put the salad dressing in a bottle and sell it." Friends of Ken did exactly that, and an entire company was born. Frank and Louise Crowley started the business of Ken's Foods® in their kitchen in 1958 based on the house dressing served in the restaurant. Today the company has plant operations in Marlborough, Massachusetts, McDonough, Georgia, and Las Vegas, Nevada.

As the years have gone by, Ken's Foods has grown far beyond that original Italian dressing. We're still a family owned and operated business. But today, between our Retail Grocery Products and Food Service divisions, we produce and package over 400 varieties of dressings and sauces.

A lot of people also come to Ken's for custom-made dressings and sauces. Others, like Paul Newman, even bring in their own ideas for dressings, and ask us to produce and bottle them.

When it comes to business, many say there's no such thing as a recipe for success. At Ken's, we happen to disagree.