Back

Supplier Negotiation Report

Bella Cucina | Full-Service Restaurant
Analysis Period
Oct 14 – Dec 8, 2024
💰 Significant Savings Available
$42,680
Spend Analyzed
8 weeks
$24,180
Savings Identified
8.7% of annual spend
$5,850
Quick Wins
This week
6
Vendors Analyzed
Top Opportunity
Protein repricing with Chicago Prime Meats
Projected Annual Savings
$24,180

Spend Overview

By Vendor & Category

Spend by Vendor

US Foods $98,540/yr (35.4%)
Chicago Prime Meats $72,800/yr (26.2%)
Midwest Produce Co $44,200/yr (15.9%)
Goose Island Beverage $31,200/yr (11.2%)
Restaurant Depot $18,720/yr (6.7%)
CleanPro Supply $12,480/yr (4.5%)

Spend by Category

Category Annual Spend % of Total Price Position Savings Opp.
Proteins $96,200 34.6% 12% Above Market $11,544
Produce $44,200 15.9% 8% Above Market $3,536
Dairy $33,280 12.0% Market Rate $1,664
Beverages $31,200 11.2% 5% Above Market $1,560
Dry Goods $27,820 10.0% Market Rate $834
Paper/Disposables $18,720 6.7% 18% Above Market $3,370
Chemicals/Cleaning $12,480 4.5% 22% Above Market $2,746

Vendor Scorecards

6 Vendors
Chicago Prime Meats
Specialty Protein Supplier
D
$72,800
Annual Spend
12% Above
vs Market
8.5%
Price Variance
$8,736
Savings Opp.
Recommended Actions:
  • → Request line-item review on ribeye, strip, and tenderloin
  • → Get competitive quote from Sysco protein program
  • → Propose 12-month commitment for 10% reduction
CleanPro Supply
Chemicals & Cleaning
F
$12,480
Annual Spend
22% Above
vs Market
4.2%
Price Variance
$2,746
Savings Opp.
Recommended Actions:
  • → Get 3 competitive quotes immediately — this is commodity
  • → Switch supplier if no match within 48 hours
  • → Consider Restaurant Depot for chemicals
US Foods
Broadline Distributor
C
$98,540
Annual Spend
7% Above
vs Market
5.8%
Price Variance
$6,898
Savings Opp.
Recommended Actions:
  • → Schedule pricing review with rep — you're a $100K account
  • → Request quotes from Sysco on top 20 items
  • → Push for 7% reduction or threaten to split business
Midwest Produce Co
Local Produce Supplier
C
$44,200
Annual Spend
8% Above
vs Market
12.4%
Price Variance
$3,536
Savings Opp.
Recommended Actions:
  • → Request weekly price sheet for planning
  • → Consolidate deliveries to 3x/week for volume discount
  • → Negotiate fixed pricing on top 10 items
Goose Island Beverage
Beverage Distributor
B
$31,200
Annual Spend
5% Above
vs Market
3.2%
Price Variance
$1,560
Savings Opp.
Recommended Actions:
  • → Request annual rebate program details
  • → Ask for marketing support / POS materials
  • → Negotiate tap handle fees
Restaurant Depot
Cash & Carry
A
$18,720
Annual Spend
At Market
vs Market
2.1%
Price Variance
$560
Savings Opp.
Recommended Actions:
  • → Consider moving paper goods here from CleanPro
  • → Evaluate plus membership for additional savings
  • → Already well-priced — maintain relationship

Price Alerts

4 Alerts
USDA Prime Ribeye 12oz
-$4,160/yr
Currently $16.50/each — market benchmark is $13.50. 22% above market rate.
💡 Switch to Choice grade ($11.50) or negotiate Prime down to $14.00 minimum
Degreaser Concentrate (4/gal case)
-$1,248/yr
Currently $89.99/case — identical product available at $62.00. CleanPro severely overcharging.
💡 Switch to Restaurant Depot or request immediate price match — commodity product
Atlantic Salmon Fillet
-$2,080/yr
Price increased 15% over 6 weeks ($11.00 → $12.65/lb) with no notification.
💡 Challenge increase with Chicago Prime — request rollback to $11.50 or quote alternatives
Roma Tomatoes (25lb case)
-$936/yr
High variance: $22–$34/case over 8 weeks. Inconsistent pricing needs addressing.
💡 Request fixed weekly pricing or seasonal agreement from Midwest Produce

Savings Opportunities

Ranked by Impact
1
Protein Supplier Renegotiation
+$8,736/yr
Chicago Prime
Vendor
Benchmark
Method
Medium
Effort
2-3 weeks
Timeline
How: Present market research showing 12% premium. Request 10% reduction with volume commitment. Have Sysco quote ready as backup.
2
US Foods Line-Item Repricing
+$6,898/yr
US Foods
Vendor
Competitive Bid
Method
Medium
Effort
2-4 weeks
Timeline
How: You're a $100K account — demand pricing review. Get Sysco quotes on top 20 items. Request 7% overall reduction or split the business.
3
Chemical Supplier Switch
+$2,746/yr
CleanPro → New
Vendor
Switch
Method
Low
Effort
1 week
Timeline
How: CleanPro is 22% above market on commodity products. Get 3 quotes today. Switch immediately or give 48 hours to match.
4
Produce Fixed Pricing Agreement
+$3,536/yr
Midwest Produce
Vendor
Volume Commit
Method
Low
Effort
1-2 weeks
Timeline
How: High price variance (12%) shows room to negotiate. Request fixed weekly pricing on top 10 items in exchange for order consistency.

Negotiation Playbook

P1 & P2 Vendors
Chicago Prime Meats
📊 Annual Spend: $72,800 🎯 Savings Target: $8,736 (12%)
📞 Phone Script — Opening Position
"Hi, I've been reviewing our protein costs and need to discuss pricing adjustments. You've been a great partner for quality, but my analysis shows we're paying 12% above current market on several items. Our annual spend with you is about $73,000 — I want to find a way to make this work, but I need pricing closer to market. I'm also looking at consolidating with our broadline distributor if we can't find middle ground here."
Key Talking Points
  • 1Prime Ribeye at $16.50 — market is $13.50. That's $3.00/unit over market, or $4,160/year on just this item.
  • 2Salmon went from $11.00 to $12.65 in 6 weeks with no notification. I need that rolled back.
  • 3I'm willing to sign a 12-month agreement and guarantee volume if you can get me to market rate.
Fallback Positions
If They Won't Move on Price:
Request 90-day price lock at current rates while evaluating alternatives. Ask about spec changes (Choice vs Prime on some items). If still no movement, consolidate proteins with US Foods broadline program.
CleanPro Supply
📊 Annual Spend: $12,480 🎯 Savings Target: $2,746 (22%) ⏱️ Priority: P1
📞 Phone Script — Opening Position
"I'll be direct — I've received competitive quotes on cleaning supplies that are 22% below what I'm paying you. These are commodity products with identical specifications. I need you to match these prices by end of week, or I'm switching suppliers. I've already identified alternatives. Can you match?"
Key Talking Points
  • 1Degreaser concentrate: You're at $89.99/case — I have a quote for $62.00. Same product.
  • 2Sanitizer tablets: You're at $45.00 — quote at $34.50.
  • 3This is straightforward commodity purchasing. Match the prices or lose the business.
Fallback Positions
If They Won't Match:
Thank them for the past business and switch immediately. No fallback needed — this is pure commodity. Restaurant Depot or a janitorial supplier will match these prices today.
US Foods
📊 Annual Spend: $98,540 🎯 Savings Target: $6,898 (7%) ⏱️ Priority: P2
📞 Phone Script — Opening Position
"We've been a loyal customer spending nearly $100,000 a year with you. I've completed a comprehensive cost review, and I've identified several items where our pricing has drifted above market. I've also received preliminary quotes from Sysco. I'd like to give you first opportunity to address these before I make any changes."
Key Talking Points
  • 1Overall, we're seeing pricing 7% above market benchmarks. On a $100K account, that's significant.
  • 2Sysco has quoted me competitive pricing on my top 20 items. I'd prefer to stay with you.
  • 3I need a 7% overall reduction, or I'll need to start splitting this business.
Fallback Positions
If They Can't Hit 7%:
Accept 5% if they extend payment terms to Net 45 and waive delivery minimums. If below 5%, start splitting business — move paper and dry goods to Sysco while keeping proteins with them.

Quick Wins

This Week
⚡
Switch chemical supplier or force price match
1 phone call • Today
+$2,746
⚡
Request Net 45 payment terms from US Foods
1 email • This week
+$1,200
⚡
Challenge salmon price increase with Chicago Prime
1 phone call • This week
+$1,040
⚡
Request weekly price sheet from Midwest Produce
1 email • This week
+$864

Implementation Timeline

4-Week Plan
Week 1: Quick Wins
☐Call CleanPro — match prices or switch to Restaurant Depot
☐Email US Foods requesting Net 45 payment terms
☐Call Chicago Prime — challenge salmon price increase
☐Email Midwest Produce requesting weekly price sheet
Target: +$5,850
Week 2: P1 Vendor Negotiations
☐Schedule call with Chicago Prime — full protein repricing
☐Get Sysco quotes on proteins as backup leverage
☐Finalize chemical supplier switch if CleanPro didn't match
Target: +$8,736
Week 3: P2 Vendor Negotiations
☐Schedule pricing review with US Foods rep
☐Present Sysco competitive quotes
☐Negotiate fixed pricing with Midwest Produce
Target: +$6,898
Week 4: Documentation & Monitoring
☐Document all new pricing agreements in writing
☐Set up price tracking spreadsheet
☐Verify first invoices reflect new pricing
☐Schedule Q1 vendor review
Target: Lock in all savings

Impact Summary

$5,850
Quick Wins (Week 1)
$18,330
Negotiation Savings
$24,180
Total Annual Savings

Next Steps

  1. This Week: Execute 4 quick wins — $5,850 in immediate savings
  2. Week 2: Schedule calls with Chicago Prime and finalize chemical supplier
  3. Week 3: Complete US Foods and Midwest Produce negotiations
  4. Week 4: Document all new pricing agreements
  5. Ongoing: Track prices weekly, review vendors quarterly

Ongoing Monitoring

Keep Savings Locked In

📊 Track Weekly

  • ✓ Top 10 item prices
  • ✓ Total spend by vendor
  • ✓ Any price increases >5%

📅 Review Quarterly

  • ✓ Full vendor price comparison
  • ✓ Get competitive quotes
  • ✓ Renegotiate if needed

🚨 Alert Triggers

  • ✓ Any item up >5% in one week
  • ✓ New vendor quote available
  • ✓ Contract renewal coming

📁 Keep on File

  • ✓ This report
  • ✓ Competitive quotes
  • ✓ Negotiated pricing docs
Supplier Negotiation Report for Bella Cucina
Generated December 27, 2024 | Questions? chris@restaurantprofitsystems.com