by Bud Hilton
Our foodservice industry certainly has seen its share of business closings, due mainly to a poor performing economy that has redirected consumer dollars away from spending in our marketplace. Even in lesser volatile situations, many chain operators have had to at least revert to unit closings as a short-term cure to possible bankruptcy. What can you do?
There is an old adage that goes something like this . . . In times of prosperity you can hide a lot of your spend-sins; in tough economic times they meet you at your front door! Basically, your expenses have to be dealt with first in any business. So, why not work on reducing them? DUH! Now it is time for you to say . . . “Wow, Captian Obvious, what a great idea!” The problem is you did not start early enough worrying about certain controllable expenses that somehow got “out of control” because they seemed tooooo insignificant back when business was much better and big money was coming in. As obvious as this is, it has become far too common of a problem.
In our industry, foodservice operators get very busy in their normal, everyday business but I am sure most will admit that they “leave some bucks on the table.” Very few produce a good “discover and recapture” strategy as a daily discipline . . . until it is too late.
Much of the type of “bucks” I refer to are lost in normal transactions between operators and their suppliers, vendors, manufacturers in either accidental pricing errors or in poorly conveyed contract agreement information. These seem minor in nature but failing to deal with them one month can result in eleven more problems that year. The good news is . . . THERE IS HELP OUT THERE! Answers Systems ValuTrakTM application provides a total contract management solution for Operators that concentrates on “exacting your contract disciplines to provide ultimate information and financial savings” for all your purchases. So, if you fit anywhere into the pattern I described, take a few minutes and talk with our company about our ValuTrak application. BUT do it sooner . . . rather than later!
Bud Hilton
Chairman & CEO
Genesis Group Inc/Answers Systems
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