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Category: Blog Posts

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Blog PostsCateringLodgingRestaurants

Tips for Lowering Food Purchasing Costs

From upgrading computer systems to equipment maintenance, restaurant costs have a tendency to add up quickly. So, what is the best way to supply a kitchen with the freshest, most delicious and most sustainable ingredients at the lowest cost?

Begin with your delivery area. Meet with your vendors and ask each one to build current order guides listing only the product that you purchase from them. Create a spreadsheet of these items for your ordering manager. Include the amount of the item that should be on the shelf, in the kitchen, and in the front of the house. This will help to prevent ordering more than you need.

Keep your inventory tight. Hang inventory sheets on a clipboard in a specified area. When the delivery person brings in the product, your manager can take this clipboard and check the inventory order sheet against the invoice, to insure that all of the correct product has been delivered, prices are accurate and that you are getting exactly what you are paying for.

Keep an industrial foodservice floor scale in your kitchen prep area to weigh in any product you buy by the pound. Weighing deliveries can potentially save you thousands of dollars on lost product.

Make sure your meats, seafood and other most expensive products are delivered as early as possible. These costly items should only be checked in by your GM or kitchen manager for freshness.

Establish a standard delivery time. You should stress to your salesperson that not delivering your shipment within your specified delivery times will result in loss of business for them. Setting specified delivery times emphasizes the importance of receiving product to both your delivery person and to your management staff.

Many of the reasons that restaurant costs can increase are that simple procedures get overlooked. It’s important to utilize restaurant-wide, cost-insurable standards across to help reduce your purchasing costs. Source1 Purchasing is a leading strategic supply chain management group focused on cost management, savings and operational efficiencies for your industry. To learn more about the Source1 Program and how it can benefit your business, visit our website at www.Source1Purchasing.com.

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Tips for Implementing Green Facility Measures

Before creating an energy efficiency program at your business, you must first develop a strategy that will guide your actions and produce the best results. Here are a few guidelines to keep in mind when forming an energy action plan:

  1. Perform an energy audit to determine current and future energy needs based on current use and available improvements.
  2. Establish achievable goals for conservation in your hotel.
  3. Appoint an energy team to supervise your energy plan. You may even want to use a task force to devise specific conservation steps the hotel could take.
  4. Develop a draft and take into account issues outside of energy when creating your energy plan to be sure that you are not creating problems in other areas such as water use.
  5. Complete your plan and decide how to implement and evaluate results.
  6. Determine key players for implementation and evaluation, clearly defining roles and responsibilities.
  7. Perform an energy audit to determine where and how your establishment uses energy.
  8. Create an energy savings plan and begin changes to reduce use.
  9. Monitor and measure energy use to determine the success of the energy efficiency program.

When designing your program to go green, it’s essential to start simple to avoid an overwhelming process. A 10 percent reduction in energy consumption can be accomplished through low-cost measures, such as operations and management strategies and can yield significant improvement to green facility management. This 10 percent reduction is the equivalent to removing nearly one million cars from the road for one year, if achieved across the hospitality industry, potentially saving $745 million per year. How do you plan on reducing energy usage at your property? Visit our website at www.Source1Purchasing.com for more advice and news for the hospitality industry.

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Restaurant Food Trends of 2014

While 2014 will consist of popular, healthy items such as locally sourced meats, produce and seafood shape, keep an eye out for new flavors, food preparation techniques and ingredients on menus. Remember these new trends on 2014 when you’re updating your menu:

Go gluten-free. To accommodate individuals with gluten allergies or intolerance, or those who just want to lose weight through gluten-free diets, operators have been debuting gluten-free items and even featuring gluten-free variations on their pasta dishes. However, because gluten occurs naturally in products containing wheat, rye and barley, restaurateurs offering gluten-free options must be careful to avoid the possibility of cross-contamination.

Have healthy items for kids. Restaurateurs will continue to focus on the importance of children’s health in 2014. Chefs are introducing more whole grain items, fruits, and vegetables on their children’s menus in an effort to promote healthful kids and improve children’s nutrition.

Try local ingredients. Locally grown items have ben popular for years, but this trend promises to grow even more this year, part of the reasoning being the connection to the sustainability movement. Additionally, restaurant guests tend to equate “local” items with “fresh” items, fitting perfectly into the health and wellness trend.

Go beyond olive oil. It is predicted that chefs will expand their horizons past olive oil this year and turn to other oils in an effort to alter the flavors of different selections. Expect to see more use of avocado, hazelnut and benne seed oils to add flavor to menu items. Moreover, with the Paleo diet becoming more poplar, many chefs will be experimenting with coconut oil even though it is high in saturated fat.

Maximize the contents of the ocean. Don’t feel limited when it comes to including items from the sea on your menu. Chefs will be using fish that are underutilized, such as as branzino and barramundi, as well as ingredients such as fish cheeks and monkfish liver. You’ll even see marine vegetables such as sea beans, plankton and different seaweeds are on the menu.

Do you plan on adding any fresh, new ingredients to your menu this year? Source1 Purchasing is a supply chain management group that provides a comprehensive pallet of solutions that empower operators to reduce operating costs, ensure consistent product quality and achieve higher customer satisfaction. To learn more about the Source1 Program and how it can benefit your business, visit our website at www.Source1Purchasing.com.

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How to Handle a Food Recall

It seems as though food recalls are constantly in the news, and as a crisis situation, they need to be managed appropriately to satisfy regulators and public opinion. To help keep your business going during a food crisis, we have provided you with a quick survival steps:

Prepare for It

Food manufacturers discussions about recalls now revolve around when a product recall will occur. Planning for a recall is a necessary for a solid food safety program and good business practice.

A food company’s recall procedure should be in writing, clear, realistic, communicated, and practiced. Practice with mock recalls in order to find opportunities to work out kinks and increase speed. The procedure should define the composition of the recall team, which will carry out the critical recall function. The recall team must have a strong coordinator as well as representation for key functions of the recall: shipping/receiv­ing, customer service, and logistics. The entire recall team should be involved in mock recall activities, which serve as reminders and practice for the role of each recall team member. Contact information for each recall team member must include both work and off-hour phone numbers. The entire food recall protocol should be updated annually or as changes occur.

Should We Recall?

At this point, discuss the risks related to a product issue. The original discussion may have been initiated through regulatory channels, customer complaints, or internal findings, but now discussions are often concerned with the financial cost, regulatory compliance, and reputation associated with recalling a product. A recall program should have predetermined criteria that have been established, specific to a company’s product, and how a decision to recall will be decided, including a reference to regulatory requirements. This could include pathogen limits, evidence of foreign material contamination, and failure of allergen controls. Form this point, steps must be taken to identify all products that will be recalled and to hold and segregate those products.

Act Fast

Because regulations and regulators are demanding more expedient food recall processes, many clients have moved their standards for full traceability from four to two hours—including real time in some cases. To achieve those times, the recall team should be assembled quickly and must know the written procedures as well as their vacation schedules. Those written procedures should be the starting point for their planning and activities. Companies should use the templates and forms that worked well during previous mock recall exercises to quickly identify and isolate affected products.

Convey the Message

Communication with consumers, company employees, and stakeholders is essential in crisis management during the food recall process. Companies should use the appropriate form of communication that will reach their customers. Food companies should also contact distributors, retailers, and customers to inform them of the recall, including instructions on how to handle the recalled product.

During a product recall, you are also responsible for answering everyone’s questions. It’s important to anticipate these questions and relay the information to everyone before it is even asked. This demonstrates the control a company has over its operation and the crisis situation while reassuring stakeholders and helps maintain the company’s reputation.

 

Food recalls are stressful, but with the correct preparation you can reduce stress and damages that can be cause to your business. Source1 Purchasing is your source for the latest trends, news, and advice in the food and beverage industry. To learn more about the Source1 Program and how it can benefit your business, visit our website at www.Source1Purchasing.com.

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5 Key Principles of Successful Marketing

The key marketing principles that restaurant companies or owners need in order to be successful applies to any type of restaurant. When following these key marketing principles, you must remember to be consistent in your offerings so that you don’t alienate any of your customers.

Target Audience

A target audience is the demographic group that your restaurant targets, with two of the most important demographics for restaurants being age and income. Define the age or income group that enjoys your food, amenities and ambience. To accomplish this, conduct surveys in your restaurant. Ask questions that measure your customers’ satisfaction with various aspects of your business, such as food taste and value. Include a few questions at the end of the survey that identify their age and income ranges. Your most satisfied customers are likely to fall within the age and income groups of your typical customer profile.

Branding

Branding is the closing the gap between what you promise and what you deliver. This pertains to your menu items, prices, atmosphere, decor and anything that sets you apart from your competitors. Your individuality is what helps you acquire and retain loyal customers. Keep your branding consistent to keep from alienating your core customer base.

Operations

If your operations aren’t running well, then branding and marketing will fail as well. Operations include factors such as food quality, service, hospitality and cleanliness – all elements in which customers have high expectations. The best way to ensure successful operations is to train your employees properly in using the proper amount of ingredients, serving customers, and ensuring guest satisfaction.

Promotions

Promotions consist of advertising and in-store marketing. Determine which media sources are most likely to bring in new customers – this could be anything from coupons, to flyers, to banners. Many restaurants hold monthly or quarterly promotional events that include specials on meals. Study the promotions of your competitors and go a step further.

Retention

It costs seven to 10 times more to acquire new customers than retain them, so it’s essential to have a retention-marketing plan in place. Focus your marketing efforts on your loyal or most frequent customers. They are the key to your business success, so it’s important to reward them with coupons and special deals every once in a while.

What restaurant marketing tips do you suggest? The goal of the Source1 Purchasing Program is to improve your overall business operations and provide you with the necessary resources to keep your establishment running smoothly. Visit our website at www.Source1Purchasing.com to learn more about the Source1 Program and how it can benefit your restaurant.

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Blog PostsLodging

Hotels are Cutting Room Service

As of recently, many hoteliers are opting to remove room service from their establishments to be replaced by a new food and beverage concept – a pantry market in the lobby.

Many media outlets have been criticizing the loss of the traditional guest service in hotels, most showcasing the data behind the change that show the revenue loss associated with the luxury of having $30 pancakes while you relax in your bed.

However, according to recent studies, hotel room service revenue as a percent of total hotel revenue in the United States has been declining since 2007. In 2012, hotels reporting room service revenue averaged contributions of 1.22 percent of total hotel revenue, compared to 1.52 percent in 2007.

In terms of hotel room service revenue in dollars per occupied room, 2012 saw amounts around $3.25, which is down from $4.33 in 2007.

The Hilton’s The Herb N’ Kitchen concept offers grab-and-go breakfast, lunch and dinner options as well as made-to-order items such as salads, pizzas and hot items. Hotels can choose to customize the setup, including buffets and/or carryout items.

Operators are cutting hotel luxury amenities such as business centers, minibars, bellhops, doormen and even traditional front desks for checking in across the U.S. For example, Yotel New York in Midtown Manhattan asks guests to check themselves in at kiosks in the hotel’s “Ground Control.” If their rooms aren’t ready, Yotel’s guests check their suitcases with a robotic baggage storage system. One main reason behind changes like these is cost control. For example, by eliminating room service, which doesn’t result in much revenue for hotels in the first place, the Hilton Midtown will cut 55 workers from its staff. In fact, room service only accounts for about 1.2 percent of the industry’s revenues. Not many people are willing to pay $30 for a hamburger that is delivered to their hotel room on a tray – instead, they would prefer to have free WiFi, free breakfast, or free parking.

The 93-room Quail Lodge, a golf resort in Carmel, California, just reopened after a three-year renovation and as introduced a reduction of low-revenue extras while instead offering those highly requested perks. Who needs hotel room service, bellhops, and doormen when you can have free breakfast, Internet, and parking?

Do you prefer to offer the basics at your hotel or would you rather have all of the extras available? Source1 Purchasing has customized contracts with a variety of suppliers so that you can create a successful pantry market for your property. Visit our website at www.Source1Purchasing.com to learn more about the Source1 Program and how it can benefit your hotel.

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Consumer Trends Driving Restaurant Decisions

While convenience and value are still the top factors when consumers make food decisions, there is now an increasing desire for a healthy lifestyle and  more mindful of food and beverage options. Mindfulness is a quality shared by both foodservice professionals and consumer foodies. Here we’ve provided you with the latest consumer trends to help you with your restaurant decisions.

1. Deliciousness and smart choices. Food should be delicious to appeal to consumers who are both value and gourmet conscious. Many foods that consumers feel to be the most delicious are processed foods that contain very little nutritional value. However, when presented with menu descriptions that focus on taste, flavors and ingredients, consumers tend to find these items more desirable.
2. Minimalism. When observing labels, consumers want to see real ingredients rather than a science formula. Many consumers describe a high quality experience with the word “homemade”, preferring meals that are less processed and more like they were freshly made in the kitchen.
3. Disguise. Healthy foods become more desirable when designed to look like a less healthy option. Creative packaging and marketing add new appeal to healthy snacks like blueberries and carrots. The salty, crunchy snack satisfaction of packaged snacks is now available in a variety of sizes and includes many different types of vegetables like kale and sweet potatoes.
4. Be mindful of brand language. Consumers are more likely to seek out the source and understand their food philosophy rather than simply pick up products that claim to be natural or artisan. Many leading food manufacturers and retailers allow consumers to connect with their food philosophy in statements on their website and practices in their businesses.
5. Provide trust. Consumers want food from companies they trust to provide nourishing, delicious food while being respectful to those who produce it. Millennial consumers in particular are evaluating companies not only on their products and their brands, but also on their corporate conscience. Today’s consumer is active and in charge of the foods they like and the places they like to eat. When surveyed about sources they trust, friends, family and social networks outrank marketing messages. Savvy marketers have learned how to join the conversation.

Source1 Purchasing is your source for the latest consumer trends in the restaurant industry to keep your establishment running at it’s fullest potential. Visit our website at www.Source1Purchasing.com to learn more about the Source1 Program and how it can benefit your business.

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Consumer Food Trends of 2014

It’s essential for restaurant owners to keep up with the latest consumer trends and adapt to those changes if they want to be successful. To keep you updated, we have created a list of some of the new consumer trends of this year.

Quality over price. We typically relate higher sales with lower prices, but recent studies prove otherwise. It has been determined that high quality foods and freshness are more important to consumers than price. To adapt to this change in customer priorities, avoid compromising quality just to offer lower prices.

Redefining “healthy.” Consumers are becoming more concerned with their diets, and are therefore demanding healthier dining options. However, while in the past healthy options have been “sugar free” or “low fat”, today’s consumers prefer food options that are “natural.” This shows that consumers want to know where their food is coming from.  To appeal for today’s health-conscious consumers, you can try and include the following concepts in your menu: gluten-free, organic, local, and sustainable.

Diversity is key. The population is always growing and becoming more diverse, so adding diverse and exotic ingredients to your menu items will help you adapt to this trend. Try incorporating “regional” items into your menu, or recipes that are associated with a specific place or community. You can also feature recipes from various parts of the world that can be made with local ingredients – this gives you the opportunity to be creative!

The rise of mobile orders. It’s no surprise that consumers are becoming more dependent on the Internet and their mobile devices, so it’s understandable that mobile and online orders actually have higher totals than traditional channels. On average, those who opt to place an order online select larger, more expensive portions than those who order via the phone or in the restaurant. Additionally, restaurants see an 11% increase in orders every month when they embrace online and mobile ordering.

As consumers change their demands and expectations, you must adapt to meet their needs. The Source1 Purchasing Program helps you stay informed on these needs to ensure efficiency and success of your business. Visit our website at www.Source1Purchasing.com to learn more about the Source1 Program and how we can benefit your establishment

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The Growth of Online Ordering

A restaurant’s virtual storefront is just as important as the actual storefront, where customers can interact and form a first impression. Customers visit your website to learn more about your business, including what’s available on your menu and where you are located – they may even be interested in placing an order online.

Providing your customers with the option to order online allows them to browse menu items, add them to the cart and see the total of the items they have ordered. They are also able to delete items, add sides, and try a new coupon offer. Online ordering is a perfect for having your customers explore your website and interact with your menu in a new way. Here are a few other benefits of online ordering:

Sell more.
It can be easy to forget to upsell when speaking to customers, but when a customer places an order online you will never have to worry about your online ordering system forgetting to up-sell top items on the menu.
By ordering online, customers have more time to look over the menu, increasing the chance of adding other items to their cart. Be sure to include appetizing pictures showcasing your menu items. Online ordering helps increase the average order size as opposed to orders that are called in.

Reduce order errors.
Online ordering is a necessity if you often find your staff struggling with language barriers. Avoid miscommunication with an easy-to-read menu online for your customers.
Boost sales.
Many restaurant websites are strictly used for information only, prompting the customer to drive to their establishment or pick up the phone to place an order. However, many customers would love the option to simply view an online menu and click to order. With online ordering, you are securing more orders and increasing sales through your website.

Improve efficiency. 
Not only are you reducing order errors by providing online ordering, but you’re also decreasing the amount of time spent on the phone. Ordering on the phone can take anywhere from 3-8 minutes, but the average online order takes about 30 seconds, which means you’re increasing efficiency and accuracy.

Have you begun creating an online ordering system for your restaurant? The Source1 Purchasing Program provides you with the latest trends in the restaurant industry to ensure the success of your business. Visit our website at www.Source1Purchasing.com to learn more about the Source1 Program and how it can benefit your establishment.

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Skills Required to Maintain Your Online Reputation

It can be a challenge managing your restaurant’s online reputation with the world of online reviews consistently rising. However, it is not impossible. After running your business all day, it’s exhausting spending a couple of hours managing your online reputation, but the key is to work smarter, rather than harder. Utilize the following tools and strategies to free up more of your day while still effectively managing things online.

1. Dedicate one hour a day to your online reputation. Establish a daily calendar reminder and commit to spending only one hour per day responding to reviews, tweets, and comments. Rather than checking throughout the day, focus on doing so during your scheduled hour. After the hour has passed, don’t check for new reviews again until the next dedicated reputation management time.
2. Set up e-mail notifications. Save yourself the energy it takes to constantly refresh your restaurant’s business page by setting up e-mail notifications. This way, you’ll be notified in real-time when new reviews have been written, friend requests have come in, tweets have mentioned you, etc. You may also want to subscribe to each sites’ newsletter to stay on top of product announcements, business best practices, and even a summary of your business’s metrics for the past week, including calls, check-ins, website clicks, etc. On Yelp, you can change your e-mail preferences in your Business Account under the Account Information section.
3. Take advantage of free tools. You can create a virtual storefront with the free tools available on the sites your customers pay the most attention to. Begin by copy-and-pasting pre-existing information from your website or marketing materials, like the business description on your “About” page, onto your business listing on the sites you’re focused on.
For example, on Yelp you can enhance your business listing and bring in new customers by using the free tools available in your Business Account. To begin, focus your attention on the following sections:
• Business Information. Here you can add your business’s website, hours, specialties, and other basic information, as well as a 3,000-character description.
• Photos. Adding photos is highly recommended. In fact, those searching on Yelp remain on a business page with photos 2.5 times longer than one lacking photos. This can include pictures of your establishment, dishes, staff, and more.
• Deals and Gift Certificates. Setting up a Yelp Deal or Gift Certificate is a great way to invite potential customers to make a buying decision while on your Yelp page. If you’re not sure what to offer, just do a quick search on Yelp and filter by who’s offering a Yelp Deal in your category for ideas. It’s free to set up a Yelp Deal or Gift Certificate, though there is a revenue share, should it lead to a sale.
4. Monitor your traffic. Most online review and social media sites provide businesses with information about the traffic they’re getting and how consumers are engaging with their business page. Review how your business’s profile is performing once a month; observe the number of user views you’ve received, clicks to your website, and so on and fill in any gaps to increase the possibility of turning those viewing your business page into an actual customer.
5. Market your business the smart way. To spread the word about where your business can be found online, add logos of the sites where your restaurant has a strong online presence on your business cards, in your e-mail auto-signature, and in your storefront.

By implementing these strategies, you will be provided with the best insight on where your business can improve based on customer feedback, and potential customers can view the positive experience that other guests are having with you. Source1 Purchasing provides you with the latest news, trends, and advice to keep your establishment running smoothly. Check out our website to learn more about the Source1 Purchasing Program and how it can benefit you at www.Source1Purchasing.com.

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