It is a service offered by food distribution experts that helps businesses renegotiate their distribution contracts.
Restaurants or other businesses with commercial food distribution agreements need to qualify for the service. Once qualified, the Enhanced Procurement team will analyze the operator’s invoices to determine a potential savings plan and how to proceed.
There are 2 qualifications needed: 1st, the business needs to purchase a minimum of $500,000 annually. 2nd, the business needs to have an average drop (delivery) size of $5,000
The service doesn’t cost the business anything. Enhanced Procurement only collects a fee if and when your distribution agreement is actually renegotiated. So there’s zero upfront cost and no risk to the business to see if they qualify and what they could potentially save. In success, Enhanced Procurements fee is paid by the distributor and not by the business.
There’s an expected range of 3% to 6% annual savings. This is based on the initial group of businesses who have used the service
Once the business has been qualified (which includes providing 90 days of their invoices), it normally takes 6 to 8 weeks to fully complete the renegotiation process.
No. We will present you with options that may include alternative distribution partners with greater potential savings opportunities, but, if you want to keep your existing vendors, you can.
That’s the “secret sauce” to our service but we can tell you that our team has more than 50 years experience working for the largest food distribution companies in the United States and at the highest corporate level. So it’s safe to say that we understand these complex agreements better than most.
Yes. We maintain 100% confidentiality with all our potential clients. In fact, we don’t advertise the names of any of our current clients specifically for this reason. Once you submit your invoices to us, we are bound by a non-disclosure provision for any proprietary information.
We launched the service in 2023 and by Q1 2024 had already renegotiated upwards of $150M in annual purchasing contracts.
Yes. The service is available to any business type that uses a commercial food and supply distributor. So besides restaurants, this includes businesses like hotels and resorts, hospitals and healthcare facilities, schools and universities, catering companies, corporate cafeterias, event venues and stadiums, convenience stores and gas stations, and senior living and assisted living facilities.
No. Enhanced procurement is not a traditional GPO (group purchasing organization). Although we have access to the best GPO in the industry, the service is available to businesses that already have a GPO and is separate from anything your GPO provides.
Both single and multi-unit operations are eligible.
Yes. Regardless of how great your current agreement is. We’ve found there are always some “hidden” overcharges that are increasing your distributors margins and not your own. We don’t charge you anything to find out so there’s no downside to exploring how much you can potentially save.
This is normal and not a problem. We will need to see your total purchasing volume (across all distributors) in order to qualify you and create a proposal.
You may be able to qualify depending on how your franchise purchasing agreement is structured. We will need more information to determine your eligibility.