Grow Your Business

Building a good network of suppliers is crucial to a canteen business, because it directly affects the quality of the products you serve.  

In addition, regular suppliers can give you payment or credit terms that are beneficial for the business. “Suppliers can give you payment terms ranging from seven to 30 days, depending on their credit policy,” says Annie Valdez, co-owner of CTED Food Services. “Since you don’t have to pay them outright, you can still roll over your cash before actual payment is made.”

“The more suppliers you have, the cheaper you can get your supplies,” adds Marie Paz Pineda, owner of M.P. Enterprises. Both CTED Food Services and M.P. Enterprises are canteen operators and food concessionaires.

A food concessionaire could build his pool of suppliers through referrals or by talking directly to market stall owners, who could refer them to suppliers or become suppliers themselves. Most of the time, however, suppliers seek out food concessionaires, says Pineda.

“Suppliers seem to know that a new food concessionaire is coming up,” she says.

 

What makes a good supplier?

1.    Price

Pineda explains that a good supplier must know and attend to the needs of the food concessionaire, and this includes regularly checking on them for bookings and after-sales requirements. Since price is the main consideration in choosing suppliers, they must offer goods that are reasonably cheaper than market prices.

A food concessionaire must there regularly check on the prices of goods in public markets and supermarkets, and constantly look for new suppliers as alternatives or backups.

 

2.    Product quality

This is the topmost consideration when choosing suppliers. A good supplier must know the best products—especially food items—to give their clients, at the best time. In any case, the canteen’s operation manager or the employee in charge must make sure that the deliveries are of good quality.

“The operations manager has to acknowledge in the delivery receipt that the deliveries are complete in quantity or volume and of good condition,” says Valdez. “He has to check all the goods.”

After receiving the goods from the supplier, handling of the product by the canteen’s staff comes into play. Explains Valdez: “Even if the goods are OK, but your people forget to put them in the refrigerator or store them properly, the goods may be damaged or spoiled.”

3.    Consistency

A food concessionaire should also ensure that the deliveries are consistent. For instance, if the agreed delivery schedule is weekly, the goods must be delivered weekly. Suppliers should foresee any delay and should inform the concessionaire accordingly, This way, the latter could look for alternative sources of goods.

4.    Payment schedule

A food concessionaire should also consider the payment terms a supplier offers. Pineda says: “new suppliers usually ask for COD (cash on delivery) but established suppliers can give 15-to30-day terms.”

Consider other factors that could affect the payment schedule. For example, some factory or office canteens are paid directly by the administration, which in turn deducts the food expenses of their workers from their salaries on a weekly or a fortnightly basis. Factor this in when negotiating payment terms with your suppliers.

 

Choosing a Supplier

Before coming to terms with a supplier, ask for the supplier’s sample products and quotations. In addition, give the supplier a trial period before actually closing the deal, to determine whether he could deliver on his promises.

CTED Food Services & Food Baskets Corp.
0922-8672803
annievaldez@ymail.com

MP Enterprises
georgikitchen@yahoo.com