7 Common Procurement Mistakes Restaurants Make (And How to Fix Them)
Avoid these costly procurement errors that drain restaurant profits. From single-supplier dependency to ignoring unit pricing.
Mistake 1: Single-supplier dependency
Ordering everything from one supplier is convenient but expensive. You lose all negotiating power and miss out on better prices elsewhere.
Fix: Compare at least 3 suppliers for your top 20 products by spend.
Mistake 2: Not comparing unit prices
A cheaper case price doesn't always mean a cheaper product. Different pack sizes and unit counts can be deceiving.
Fix: Always calculate and compare price per unit (per kg, per liter, per piece).
Mistake 3: Ignoring seasonal pricing
Buying the same products year-round means paying premium prices during off-season periods.
Fix: Adjust your menu seasonally and track price trends over time.
Mistake 4: Rare price reviews
Reviewing prices once a year (or never) means you're likely overpaying on dozens of products.
Fix: Set up monthly price comparisons using an automated tool like SupplierScan.
Mistake 5: No negotiation leverage
Walking into a negotiation without data is like playing poker without looking at your cards.
Fix: Use competitor pricing data to negotiate better rates with your current supplier.
Mistake 6: Overlooking delivery costs
Free delivery thresholds and surcharges can significantly impact your true cost per unit.
Fix: Factor in all costs — including delivery — when comparing suppliers.
Mistake 7: Manual spreadsheet comparisons
Spending hours in Excel is not only inefficient — it's error-prone. You'll miss matches and make mistakes.
Fix: Use AI-powered comparison tools that match products automatically in seconds.
Conclusion
Most procurement mistakes come from doing things "the way we've always done it." Small changes in approach can lead to big savings.