Pizza Today - September 2021 - 16

BUILDING BLOCKS N I C K B OG A C Z
Negotiating with
your distributors and vendors
I
f you've read our past two installments
- or are simply conducting
your business - you know most
of the restaurant industry is fi ghting a
labor shortage and supply issues. Previously,
we discussed solutions related to
raising employee wages and increasing
prices to facilitate that. Th e next solution
is just as important: meeting with
vendors to ensure you're getting a fair
price from them.
Over the last year and a half, we've
experienced product shortages - with
some products simply being discontinued
- and price increases, as the
vendors that service our industry also
feel the pain of the pandemic. But the
answer is not a simple renegotiation
or just switching vendors. Rather, it's
having an honest conversation with
vendors about where we've been, where
we are now and where we go from here.
The Past
Vendors face challenges from all
sides, from manufacturers to customers
who bolt for small savings and
big promises. But if you've been loyal
to your vendors, keeping your business
with them for a long period,
then you owe it to yourself to start
the discussion. Remind them of how
your relationship started, how you've
always found common ground in the
past. Talk about how you both hung
tough during the pandemic, and fi nally,
remind them that when other vendors
came for your business, you were
always loyal.
The Present
Th e circumstances restaurants and
their vendors currently are facing are
quite similar. Supply and employee
shortages are crunching both parties
weekly. In your conversation, let
vendors know you are concerned not
only for your business but theirs, as
well, and the state of the industry.
We're all in this together - and
we'll get through it and build a better
tomorrow.
Beyond the emotional component,
discuss what price structures are in
place right now, be prepared to go
through your invoices line-by-line,
and identify areas where you can get
better pricing immediately. Th is is
to remind the vendor how long it's
been since such a detailed review
occurred and make sure they are
aware of where the prices currently
stand. I've seen that when you review
line-by-line with the right person,
they are happy to fi nd ways to save
you money where they can. You can
expect them to be honest and tell
you where prices will keep going up
or where they are at the mercy of the
manufacturers.
The Future
Next, take it to the fi nal step and
talk about the future. What can you
expect from them, in terms of service
and price? Where do they see their
business going in the coming months
and years? How do they see your
relationship evolving? Th en let them
know your own game plan - how
you see your business growing and
your vision for the future.
Indeed, all great businesses, from
the tech world to pizza shops, must
have a vision. Th is is a dream or longterm
goal that can be shared with
your vendors and your team members
alike. In the next installment of
Building Blocks, we'll discuss crafting
a vision that resonates - and
why now is the perfect time to build
more stores. ■
NICK BOGACZ is the founder and president of Caliente Pizza & Draft House in Pittsburgh. Instagram: @caliente_pizza
16 / PIZZATODAY.COM / SEPTEMBER 2021

http://www.PIZZATODAY.COM

Pizza Today - September 2021

Table of Contents for the Digital Edition of Pizza Today - September 2021