Cultivating Relationships with Vendors: The Key to Restaurant Success

Operating a successful restaurant requires much more than just great food and service. Behind the scenes, you need strong vendor relationships to keep your business running smoothly. After 25+ years in the hospitality industry, I’ve learned that building rapport with your suppliers is one of the most essential things any restaurateur can do.

In this blog post, I’ll share my tips on how to start, grow, and maintain positive vendor relationships as a restaurant owner. These strategies, when implemented, will not only help you get the best service and prices over the long haul but also reassure you of the significant benefits of cultivating strong vendor relationships.

Why Vendor Relationships Matter

Your vendors are your partners in delivering an excellent dining experience to your customers. When you have suppliers you can count on, running your business is much easier. Here are some of the key benefits of cultivating great vendor relationships:

Reliability

With strong relationships, you can rely on your vendors to consistently deliver what you need when you need it. No more scrambling when an order doesn’t arrive on time.

Quality Products

Vendors who value your business will work to source higher-quality ingredients and products for you. This directly impacts the food and service you provide to guests.

Better Prices

You’ll get better bulk pricing when you regularly order large volumes from a vendor. Long-time partners are also more likely to offer discounts or deals.

Customised Service

The right vendors will learn about your business and needs. They can then provide specialised products and services tailored to your restaurant.

Problem-Solving

When issues inevitably arise, you want vendors who will do everything possible to help fix them. The best partners see your success as their success.

How to Start Vendor Relationships

Beginning new vendor relationships takes effort upfront but pays off exponentially as your business grows. Here are some tips for getting started strong:

Research Reputable Suppliers

Talk to other restaurant owners in your area about their vendors. Check online reviews. Ensure any vendor you consider has a solid reputation for good service and quality.

Interview Multiple Options

Don’t just go with the first vendor you find. Take the time to interview several companies in each product category. Compare their pricing, product selection, reliability, and customer service.

Do a Trial Run

Before signing any long-term contracts, place a small trial order with a new vendor. See how the ordering process works, whether they deliver on time, and the quality of the items once they arrive.

Set Clear Expectations

Setting clear expectations is crucial in any business relationship, and your vendor relationships are no exception. By being upfront with new vendors about your ordering process, delivery needs, product standards, and billing practices, you can ensure they can consistently meet your requirements, empowering you to be in control of your vendor relationships.

Look for Fair Pricing

Compare pricing from all the vendors you consider. Make sure you’re getting fair market value for the quality level. Don’t sacrifice quality just to save a buck.

Ask About Additional Services

Inquire about what vendors can offer besides the core product. Can they provide equipment maintenance? Marketing materials? Staff training? The more needs they can meet, the better.

Tips for Growing Strong Supplier Relationships

Once you’ve started relationships with great vendors, there are things you can do to help those partnerships continually strengthen over time:

• Communicate frequently – Check in regularly with your suppliers, not just when you need to place orders. Get to know them personally and let them know what’s happening with your business.
• Pay on time – Always pay your vendor invoices promptly or early if possible. This builds immense goodwill with suppliers.
• Provide feedback – Give your vendors constructive feedback about what’s working well or any issues you experience. They want to improve too.
• Resolve conflicts quickly—If problems arise, address them head-on with your vendor right away. Work together to find a fair solution.
• Showing appreciation is a simple yet powerful way to strengthen your vendor relationships. Whether it’s sending holiday cards, writing online reviews, or occasionally taking your best suppliers out to lunch, these gestures will make your vendors feel valued and appreciated, fostering a stronger connection between you.
• Limit supplier turnover. If a vendor relationship is working, stick with it. Changing suppliers frequently creates more work for you.
• Keep communication professional. As you build rapport with vendors, set boundaries. Don’t share sensitive details or vent too much.
• Share success stories—When you win using a vendor’s products or services, let them know! It shows the value they provide.

Handling Challenging Vendor Situations

Even in the best partnerships, problems inevitably come up now and then. Here’s how to deal with challenging vendor situations professionally:

Late or incorrect orders – Contact the vendor immediately to resolve the issue, but avoid accusatory language. Calmly reinforce your expectations.

Quality problems – Politely insist on refunds, credits, or replacement products if vendors deliver items below your standards.

Unmet requests – If you ask a vendor for a service like special delivery arrangements or tailored offerings for your menu, and they need to follow through, reiterate your request clearly in writing.

Poor customer service—If a sales rep is repeatedly rude, unresponsive, or does not meet your needs, request to speak to their manager to address your concerns.

Pricing issues—If a vendor raises prices excessively without warning, tell them you may need to find a new supplier unless a fair compromise can be reached.

Repeated problems—If major issues persist even after feedback and attempts to resolve them, it may be time to part ways. But give them chances first.

Assigning Vendor Relationship Duties

Maintaining great vendor relationships takes constant effort. As a restaurant owner, you can’t do it all yourself and run the entire business too.

Here are some tips on delegating vendor duties:

• Assign 1 purchasing lead per category. Have one manager handle all food ordering, 1 for beverages, and 1 for supplies/equipment.
• Train back-ups – Make sure at least two people are cross-trained in the ordering process for each category.
• Share contact info—Keep a master list of vendors’ and sales reps’ names and contact information accessible to purchasing leads.
• Track orders—Use a shared tool to note order dates, quantities, and follow-up needs. Google Sheets or Trello work great.
• Communicate issues—If any purchasing lead experiences a problem with an order, have them share details with the whole team immediately so they can troubleshoot together.

Top 5 Vendor Relationship FAQs

If you’re starting with managing your restaurant’s vendor relationships, you may still have some questions. Here are answers to some of the most frequently asked questions:

How often should I be in contact with vendors?

Aim to check in 1-2 times monthly for your core vendors supplying staple ingredients or beverages at a minimum. Quick 5-minute phone calls work! For vendors you order from less frequently, once every 1-3 months is fine.

Should I sign long-term contracts with vendors?

It depends. Contracts of 6 months to 1 year can guarantee pricing and supply. But make sure you negotiate outs in case the relationship goes sour. For brand-new vendors, start with no contract and do periodic renewals once they’ve proven themselves.

What terms of payment should I request from vendors?

When possible, try to negotiate net 30 terms with all suppliers, meaning full payment is due in 30 days from receiving an invoice. Net 15 is even better for cash flow. For brand new vendors, pay on delivery at first to test reliability.

What can I do if vendors won’t negotiate better prices?

Ensure you allow vendors to earn business by matching or beating competitor pricing. If they don’t budge, present your case for lower rates based on large order volumes. As a last resort, change suppliers to keep food costs down.

Should I rely on just one vendor or diversify suppliers?

It’s smart to have 1 primary vendor in each important product category for simplicity’s sake, but you should also have backup options you can source from sometimes. Switching around keeps vendors working hard to earn your business.

The Vendor Relationship Journey

Building strong vendor relationships that stand the test of time takes diligence, patience, and plenty of communication. But it’s one of the most worthwhile investments you can make as a restaurant owner.

When you take the time to find great suppliers, set clear expectations, continually nurture those connections, and work through any issues, you’ll gain partners who are in it for the long haul. And you’ll both reap the rewards through shared success.

I’ve learned those vendor relationship lessons over 25+ years in the restaurant industry. These tips help set you and your business up for fruitful partnerships with your users for many years! Let me know if you have any other questions about vendor relationships.