The initiative is focused on high-volume commodity ingredients © RedHelga/Getty Images
The initiative is focused on high-volume commodity ingredients © RedHelga/Getty Images

Food sector firms collaborate on buying chips

16 June 2020

Hospitality sector firms are looking to collaborate on sourcing high volume products to ease margin pressure in the wake of the Covid-19 pandemic.

Large-scale operators from the dining, catering and pub sectors are considering pooling their volume in order to help manage costs in anticipation of recessionary times ahead.

The initiative is being co-ordinated by supply chain management company Prestige Purchasing and is focused on high-volume commodity ingredients such as cooking oil, butter, chicken, high-volume cheese, and chips.

These products are typically purchased direct from the manufacturer and are generally of similar specification across the whole sector, representing between 5% and 25% of total spend, according to Prestige Purchasing.

The project is open to any hospitality/foodservice business with a total pre-Covid annual food spend in excess of £20m.

Prestige Purchasing chief executive Shaun Allen said hospitality businesses were facing unprecedented headwinds in the months and years ahead.

“In an environment where volumes will be weak and the opportunity to raise prices limited, operators need to leave no stone unturned in the quest to reduce cost per transaction,” he said. “This initiative will provide an affordable means of substantially and measurably lowering costs, without any compromise to the customer experience.”

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