In the F&B industry, it is very often that the focus falls on placing customers' needs first and sometimes, we forget that suppliers are a vital part of our F&B business. They are crucial in bringing you your ingredients required to start preparing your dishes. Building a strong relationship with suppliers can not only help you to get preferential pricing and first-hand news on new products but also ensures smooth sailing operations (Guaranteed supply of goods, making emergency deliveries for your restaurant during peak periods) and managing expectations between both parties.
How do I find my suppliers?
When starting out in the F&B industry, everything from where to source for possible suppliers to assessing the quality of suppliers and managing them is no mean feat. Well, iCHEF’s got your back!
We spoke to 3 F&B owners to learn more about their ways and processes of managing and working with food suppliers, and they are namely :
Bruno, founder/owner of Bruno’s Pizzeria & Grill – he has been in the F&B industry for close to 20 years, with currently 3 outlets across Singapore
Gwern, owner of A Noodle Story – a hawker stall specializing in Singapore-style ramen at Amoy Food Centre and has been in the industry for 10 years
Vandana, co-founder of Capri Trattoria – an Italian restaurant specializing in Southern Italian Cuisine, from the coastal regions of Capri and a new F&B owner herself
Map out your dishes and categorize each of the dishes’ ingredients into perishables (Meat, Vegetable, Seafood, etc.) and non-perishables (Flour, Nuts and Seeds, Canned beans, etc).
By mapping your dishes out, you are able to plan & structure the number of suppliers you would need.
For a rough gauge for a new F&B business, A Noodle Story and Capri Trattoria each have one outlet in Singapore and they have approximately 10 suppliers for their ingredients.
2. Try to minimize your inventory by using similar base components for multiple dishes
This helps to cut down on the number of suppliers that you need to source for. In addition, it also helps to reduce your expenditure on ingredients which may go to waste because they are not used up quickly enough.
For example, Capri Trattoria uses potatoes as their base for 60% of their mains. Some of their mains with similar bases are Grilled Lamb Rack, Grilled T-bone Steak, Grilled Beef Tenderloin.
In order to determine which supplier brings you the best price and quality, it is advisable to speak with at least 3 suppliers to estimate which can quote you the best price for similar quantity It might be a good idea for you to meet the suppliers in person and get an idea of how their business operates to determine if it fits your criteria of a good supplier.
Using Social platforms to help source for your suppliers. Consider joining Facebook groups with F&B suppliers, such as Singapore F&B Business Network.
Through the word of mouth. Speak to your neighboring F&B restaurants and ask them about their suppliers. Of course, before you do that, you have to build a good relationship with your neighbors! Sometimes, referrals may bring you additional benefits such as lower costs for your ingredients or delivery.
Just like Vandana! Previously, she was from Pasta Fresca and she was able to tap into her existing contacts to look for suppliers when she started Capri Trattoria.
2. How can you differentiate a good supplier from a bad supplier?
After sorting out the number of suppliers that you need based on your menu, the next step would be to find a reliable source for your ingredients.
To differentiate a good supplier from a bad supplier, you have to look at:
What they are selling you and determine if they provide quality ingredients
The quality of ingredients is the most important factor to differentiate a good supplier from a bad supplier. Without having quality ingredients, customers would not be willing to come back to your restaurant. Each of our 3 F&B owners unanimously agreed during our interviews that good quality is their utmost priority when sourcing and using a supplier.
Gwern from A Noodle Story shared with us that if the quality of ingredients is sacrificed for a lower cost, no customer will show up and be willing to spend their money at your F&B business.The reliability of your suppliers
A good supplier will deliver the correct quantity of goods on time and in the right condition. Before selecting your suppliers, you may want to visit the supplier and look at the cleanliness of their vehicle, their carrier bags, the equipment used to transport your food.
When your stock has arrived, examine and weigh the goods that you have ordered and determine if they are still in the right condition. We have heard stories from F&B owners that they found cockroaches and other insects in the shipments from their suppliers! This results in having to throw away the entire stock as it is unhygienic and it cannot be cooked and served to customers.
It might be difficult to maintain the consistency and quality of your ingredients if your suppliers do not handle your ingredients properly during the delivery of your products.They can meet your last minute request
All three F&B owners mentioned that this is what they look for in a supplier. They shared that there are several periods in a year where their business is especially busy and they have to cater to an uptick of customers. At times like this, ingredients may run out right in the middle of the week and this is when you may require your suppliers to be flexible and deliver the goods needed on short notice so that business can operate smoothly.A good supplier is willing to accept criticism and feedback
They will be willing to listen to your input, change, and meet your expectations.
3. How can I maintain a good relationship with my food suppliers?
Pay your bills on time
This is the most important factor for a good relationship with your vendors. Ensure that they do not have to chase for bills that are past due. Once you have an agreed payment schedule with your vendors, do not avoid payment as this will affect your relationship with them over time. Most suppliers will not extend credit terms to new businesses as their trust has to be gained over months of prompt payment. Suppliers also blacklist businesses who do not pay for their orders, and this might make it difficult for a business to find alternative suppliers to work with.
Mr. Gwern from A Noodle Story mentioned that payment is definitely a very tricky subject and money should never be owed. He makes it a point to do his accounting every single day and pay his suppliers immediately when goods have arrived. He does not want to have any credit issues with his suppliers as it might spark unhappiness.Knowing what you need to order
Let us go back to our first point of knowing what is needed for the business and the importance of being precise when conveying the list and quantities required. This can be done through various methods such as manual stock-taking or by using a POS system with inventory management that keeps track of what you have purchased for the week.
iCHEF POS system provides F&B owners with the ability to track ingredient usage and determine if they need to stock up their ingredients. For example, the POS system is able to tell you the quantity of seafood, meat you left. From there, you can look at the inventory to stock up on your ingredients.Trust your suppliers
Share information with them regarding your business inventory and sales as it will help them to forecast orders and delivery dates and react quickly to changes. By doing this, your suppliers can help you to pre-portion your orders.Keep an eye for opportunities for your food suppliers
They will thank you for that! By introducing them to new contacts for their business, it provides a win-win situation for you and your business. At times, vendors might throw in freebies such as extra mushrooms, more flour, or let you sample new products. They might even charge you a cheaper price if you have a good relationship with them.
Be honest with your suppliers
Communication is key with your suppliers! Suppliers love honesty and feedback but remember to do it tactfully. Humans are prone to making mistakes and miscommunication happens occasionally. Speak to your suppliers politely, and work through things together with them if the quality of the ingredients is poor. It is vital to allow your suppliers to be part of the solution to your problem.
All in all, the F&B owner and the supplier relationship is a two-way street! No doubt, suppliers are essential to your business and similarly, they cannot do without you. Building good rapport will bring you a long way in the future as your suppliers will be more inclined to share the good stuff with you first.
Caroline Yap is the editor and intern at iCHEF Singapore. She manages iCHEF Club, a growing community of F&B owners in Singapore – organizing events, an online newsletter, and the F&B Entrepreneur Bootcamp, the only regular workshop on opening a new restaurant in the country. In her spare time, she loves drawing, painting, and creating new visuals. Her love for Korean food runs deep such that you can spot her at any famous Korean Restaurant in Singapore.
