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groupexadmin
June 25, 2024
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Restaurant operators always look for ways to reduce costs and save time without compromising quality. One effective strategy many operators are embracing is joining buying groups. Combining their purchasing power allows these groups to negotiate better deals with suppliers, resulting in significant savings for their members.
What is a Buying Group?A buying group, or a purchasing group organization, works with major brands, suppliers, and a variety of partners to negotiate bulk pricing and more favorable terms for their members. This collective approach allows small or independent restaurants to benefit from discounts and rebate programs typically reserved for larger chains.
Leveraging Collective Buying PowerThe primary advantage of buying groups is the strength of their collective buying power. When multiple restaurants unite, they generate a significant volume of demand. Suppliers are more likely to offer better pricing and terms to secure a large, consistent order from a buying group compared to negotiating with individual restaurants.
As a buying group, Groupex has $36 billion in combined purchasing power. We leverage 40 years of relationships with major brands and suppliers on behalf of our member base.
Better PricingSuppliers often base their pricing on the volume of goods ordered. Larger orders allow suppliers to reduce their per-unit cost, savings they can then pass on to the buyer. When restaurants join a buying group, they can significantly reduce their food and supply costs by taking advantage of these lower prices.
A single restaurant purchasing 100 pounds of chicken per week might pay a higher price per pound than a buying group ordering 1,000 pounds collectively. The supplier saves on logistics and handling, which translates into cost savings for members.
independent restaurants to benefit from discounts and rebate programs typically reserved for larger chains.
Extensive NetworkBuying groups offer more than just cost savings. They provide greater access to a network of major brands, suppliers, industry experts, and service providers. This network is essential for building relationships and feeling part of a larger community. It enables operators to establish valuable partnerships, gain insights from industry leaders, and access specialized services tailored to their restaurant needs.
Groupex facilitates connections with major brands such as Pepsi, Diversey, Canadian Linen, Gordon Food Service, and more. These are trusted brands in the industry, and our partnerships with them ensure that our members have access to high-quality products and services at competitive prices.
Improved RebatesBeyond pricing, buying groups can secure exclusive promotions and rebate offers for their members. They can negotiate a rebate program where members receive a certain percentage back on their purchases over a specified period. These rebates can add significant savings over time, providing operators a financial cushion and peace of mind.
Groupex’s rebate program covers various categories such as Food & Beverage, Cleaning Supplies, Paper and Packaging, Equipment and Smallware, Technology Solutions, and Financial Services. Our members receive a rebate check every month based on their program participation. We understand that each restaurant has unique needs, and our programs are designed to be flexible and adaptable to meet those requirements.
Quality and ConsistencyBuying groups work directly with suppliers to ensure consistent quality and supply reliability. By representing an extensive customer base, buying groups can demand higher standards and ensure that suppliers meet them consistently. This leads to a reliable supply of high-quality ingredients and products, which is vital for maintaining the restaurant’s reputation and customer satisfaction.
Joining a buying group like Groupex is an excellent strategy for restaurants looking to improve their bottom line. Our collective buying power translates into better pricing, improved rebates, and consistent quality, helping restaurants manage their costs more effectively.
To learn more about the cost-saving benefits of a foodservice buying group, click here.