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The secret to cost management is to train all your employees to be cost conscious.

Today, there are ingredients which are easily available and need not be imported. Most expat chefs who wanted things from their countries have started looking for local alternatives.

In supplier negotiations, how much lower do you start when discussing price?
AS: Market research on prices is a useful tool for supplier negotiations. Also getting quotation from multiple suppliers is important. Negotiations have to be based on these two factors and will vary from supplier to supplier.

SNR: Of course pricing is very important, but it cannot be irrational and unreasonable. It is just not bargaining for a rupee or two, other factors such as quality, delivery packaging service and payment terms play a very vital role while negotiating price.

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One must always remember that the supplier is a vital link in our operations and his interests should also be addressed.

SP: A great supplier is a vitally important asset to your business. I feel a rock bottom price is sometimes reflective of poor quality and may end up costing you more in the long run.

The quality of your product is what differentiates your establishment from competitors. Using the right products will help control cost and protect value. When times are tight, you need to depend on tried and tested quality and flavours.

Explicit value from suppliers is absolutely essential. Convenience foods play an important role here as these products offer time saving properties and deskilling solutions.

GL: Remember, that the supplier also has his business costs. Just because we want a special rate does not mean that he will lose money. But involving him in the process of costing will help us. Look at big restaurant chains who do open costing with their suppliers, it has worked for them and there is no reason it should not work here as well.

Is there a secret weapon to cost management? If so, what is it and how does it work?
AS: The secret is to train all employees to be cost conscious. Constant vigilance and reinforcement of cost management through training is the key.
 

SNR: It is proper training of the personnel involved in handling raw materials during processing. A specialised system should in place to control wastage, pilferage and spoilage.

SP: There is no secret weapon in cost management. The only way forward is to protect your profit by efficiently cutting energy costs, using efficient and effective equipment, controlling waste, managing portion control, managing protein and putting your ingredients to work.

GL: There is no such thing as a secret weapon in cost saving. Wise decisions make the product look good, cost less and fly off your shelves. Look at burger fillers and toppings to charge your customer that extra rupee. If we make it look worthwhile for the customer to spend, then we have won the case.