Eight out of 10 hospitality business owners face issues when working directly with suppliers, a new report claims.
Issues such as trying to find the right supplier and having a lack of time to review their suppliers are affecting the purchasing strategies of 80% of firms, according to the study carried out by purchasing group Beacon.
It learned that 28% of business owners find they have a lack of time for supplier reviews and price re-negotiations, leaving them unhappy with the cost of products and services, but with no easy way to improve the situation.
16% of those asked were frustrated by the poor quality of suppliers and 15% think they use too many suppliers, which has a knock-on effect on the amount of time spent on administration and paperwork.
The research also revealed that 21% of business owners find that searching for and eventually finding the right supplier is a real issue within their business.
Paul Connelly, director of operations at Beacon, said the research was conducted to learn more about how businesses outside of our customer-base purchase from suppliers, and specifically what issues they face day-to-day.
“These results show that many businesses are facing issues when working directly with suppliers, and not primarily due to poor service, but mainly down to a lack of time to invest in managing and maintaining a successful procurement strategy.”
Responding to the challenges faced by operators in finding suppliers Jack Sharkey, chariman of the Catering Equipment Distributors Association, said Beacon’s survey of hospitality businesses highlights some broad issues when it comes to operators finding good suppliers.
"We would say that a simple solution for any hospitality or foodservice business that requires catering equipment would be to contact CEDA who will locate the member who can best fulfil their needs. This comes down to finding the most suitable equipment for any operation, providing value for money and the customer service and support that are crucial.
"In essence working with CEDA and CEDA member companies will save time and money, dealing with the root issues Beacon’s survey focussed on.”