I Know a Guy

Cost Versus Performance

“I can get it cheaper online”. “I’m not sending your kids to college . .  .” Cute. Funny. But, not always very smart. What you want and need from your suppliers and vendors is a commitment to helping you open a successful restaurant.  That means you need them to make sound recommendations, source the best products for your operation and give honest feedback to your questions and ideas.  When building your overall team, you need partners who will help you achieve your goals.  You need to surround yourself with people and companies you can rely on and trust. If you think any of the resources you are working with cannot deliver, find ones that can.

Of course, you can find less expensive suppliers and cheaper products. But will these suppliers and manufacturers stand behind their services and products? Will they quickly replace broken or missing parts? Will they take returns when you realize you made an error and want a different model or features? Will they coordinate training and demonstrations for your staff?  There are tradeoffs between cost and service. Understand them before you save a dollar that may cost you many more.

We are talking about furniture suppliers, equipment dealers, kitchen and bar suppliers, companies that supply tabletop accessories and many specialty products.  There are full-service sources that can provide all these items. And, there are specialty companies that just handle a portion of these items.  Check references and get to know the people behind these companies. Know the sales person who will be handling your account. Establish a relationship with these vendors. They will become a valuable resource as you grow your business.

You have many manufacturers that offer similar equipment. Choosing the brand and model is more than an exercise in pricing. Sure, availability is important, and certain features may only be offered by a handful of vendors.  Your supplier may also have preferred sources and will promote those to benefit from price breaks, freight deals or other up front benefits.

What you probably overlook is the long-term performance and maintenance of the equipment. You may not even know how to evaluate this important consideration.  Let me introduce you to your local authorized service agency.  These professionals spend their days dealing with equipment issues. Many of these issues are the result of improper or negligent operator maintenance. But quite a few are also caused by poor equipment design, cheap components or hard to find parts.

Research your local service agencies and find one or two that have excellent reputations among your restaurateur friends. Meet them personally and ask their opinion of the manufacturers and models you are considering.  You will learn quickly which appliances are maintenance headaches, have unresponsive warranty departments or fail to perform as advertised.

These ASA’s (authorized service agencies) are valuable partners to your success. Treat them as the professionals they are. They will save your ass on many occasions.

Building a restaurant is an expensive endeavor.  Build your budgets, spend your money wisely and consider the long-term consequences of your decisions. You may need an inexpensive quick fix to get you open with plans to purchase the higher quality equipment when business revenue can cover the cost. Fair enough.  Just go in with your open eyes and a clear plan.  

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