Tendering Guide for Restaurants and Cafes – It’s Time For a Better Offer!
One of the most effective ways to save money, improve quality, and stay competitive is by regularly asking suppliers to tender for your business. This guide will walk you through the process of cafe and restaurant tendering with simple examples and tips to get started.
Tendering for supplier contracts might feel a bit intimidating, but by following these steps and keeping the communication professional, you’ll gain confidence and see the rewards in your bottom line. Once you’ve done it a few times, it will become a normal part of your annual calendar, and you already have the templates ready to use again.
Preparing to Tender
Invite tenders from your suppliers annually or whenever a contract is about to end. This ensures you’re always getting competitive pricing and the best possible service. Even if you have a great relationship, you gain respect for using a formal process to confirm it – your suppliers are used to restaurant tendering requests and won’t take it personally! You should also consider tendering if a supplier increases their prices, you’re unhappy with the quality or reliability of their service, or you suspect you could get better deals elsewhere.
Before asking suppliers for quotes, take some time to organise your information: – List All Your Suppliers: Write down everyone you buy from, including food, beverages, cleaning supplies, and packaging. – Understand Your Needs: Know your required quantities, quality, and delivery schedules. – Categorise Suppliers: Major suppliers (e.g., meat, dairy, coffee) may need a formal tender process, while smaller items (e.g., napkins, specialty food) might only need a quick price check. – Review Past Performance: Check your spending and whether the supplier met your expectations.
Preparing a Request for Proposal (RFP)
An RFP is a document or email that invites suppliers to bid for your business. It’s a standard process for large operators, and suppliers are very used to receiving them. Here’s what to include: – Introduction: Briefly explain your business and what you need. – Specifications: Be clear about quantities, quality, and delivery requirements. – Questions: Ask about pricing, payment terms, rebates, flexibility, and references. – Deadline: Give suppliers a specific date for a response, and make them aware you have also approached others.
Example Email Template:
Subject: Request for Proposal – [Your Business Name] Dear [Supplier Name], I’m reaching out to invite you to submit a proposal for supplying [specific items, e.g., fresh produce] to our cafe. We require [details of quantities, quality, and delivery schedule]. Please provide pricing, payment terms, rebates and any flexibility you can offer. Submissions are due by [date]. Let me know if you have any questions. Best regards, [Your Name]
Approach both current and new suppliers with a professional and friendly tone. If you’re contacting an existing supplier, let them know you’re reviewing all contracts and do value their service. This keeps the relationship intact while showing them you’re serious about pricing, quality and service.
Evaluating and Comparing Tenders
Once you’ve received tenders, it’s time to compare them. Don’t just look at the price—consider other key factors like: – Quality: Can they meet your standards, especially if it’s cheaper? Does the current quality actually matter? – Flexibility: How do they handle last-minute changes? – Hidden Costs: Are there fees for delivery or payment terms? What’s the net effect of a rebate if you exceed a certain annual quantity? – Reputation: Check reviews or ask for references from other businesses.
Using AI for Supplier Management and Restaurant Tendering
AI tools can help analyse data and help with supplier management in a wide variety of interesting ways: – Spending Insights: AI tracks spending trends and suggests cost-saving opportunities, based on your bookkeeping data and supplier records. – Stock Predictions: Tools can predict seasonal price changes, so you order smarter. – Performance Alerts: Get reminders to review suppliers when issues arise – this is often built into your Stock Management System. – Automate Price Comparisons: AI software can quickly highlight differences in pricing – upload the different price and supply documents and ask for comparisons. – Analyse Trends: Look for patterns in supplier performance. – Check Reviews: Use AI to gather insights from online reviews and ratings. Google Reviews can be an interesting quality check.
– Compare pricing and terms quickly (through your Stock Management System) – Track progress toward rebate thresholds (through your Stock Management System) – Analyse supplier performance trends. – Analyse Competing Tenders: Use AI to identify subtle differences between tenders, such as hidden fees, varying delivery schedules, or additional services. – Predict Supplier Reliability: AI can evaluate historical performance data to predict which suppliers are most likely to meet your standards consistently. – Optimise Negotiation Strategies: AI tools can provide suggestions on negotiation tactics based on the terms offered by multiple suppliers. – Ask your favourite AI tool (eg ChatGPT, Gemini, Claude) how it can help with tenering, given what it knows about your business… have a chat!
Negotiating Like a Pro
– Bundle Orders: Combine items to get better discounts – the larger the total weekly order, the better you can wrestle for a better deal. – Leverage Competition: Use other offers as a bargaining tool without alienating your supplier. Have competing prices and information available during the negotiation. – Ask for Extras: Try negotiating free delivery or extended payment terms, especially if you can offer something in return eg fewer but larger orders in a week, minimum order size, or flexibility with substitutions. – Negotiate on the Rebate – that’s the payment you get back for meeting or exceeding a certain annual order size eg 2-3% rebate for annual orders about $300,000. Standard for large operators, and small venues should push for it too! – Get Everything in Writing – if you have a phone conversation or meeting, follow it up with an email to confirm the details. – Can You Be Too Aggressive? Sometimes, and it can damage a long-term relationship. But many operators are not assertive enough – your ‘aggressive’ may just be normal to-and-fro for many of your suppliers, they have thick skins.
Maintaining Supplier Relationships
Winning a tender is just the start. Building strong relationships with your suppliers ensures smooth operations. Keep communication open, provide regular feedback, and review their performance at least once a year. This also helps you identify when it’s time to tender again.
Final Tips for Success 1. Set calendar reminders to tender annually or before contracts end. 2. Keep tender-related documents organised for future reference – many of them you can ‘rinse and repeat’ once you’ve done the initial work of setting them up. 3. Share the results with your team so everyone sees the benefits of better deals – some of them may wonder why you’ve made changes.
More Helpful Tender Templates
Template for an Expression of Interest (EOI)This can be used before sending a formal Request for Proposal (RFP).
Subject: Expression of Interest – [Your Business Name]
Dear [Supplier Name],
We are exploring suppliers for [specific items or services] and would like to gauge your interest and suitability to meet our requirements. Please respond with details about your capabilities, including: – Availability of [specific products/services]. – Your standard pricing structure. – Delivery options and schedules. – Any relevant experience working with cafes/restaurants. We look forward to hearing from you by [date]. Best regards, [Your Name]
Template for Follow-Up with Non-Responding SuppliersTo encourage suppliers who haven’t replied to engage with your process.
Subject: Follow-Up on Request for Proposal – [Your Business Name] Dear [Supplier Name], I wanted to follow up on the Request for Proposal we sent on [date]. If you’re interested in this opportunity, please let us know by [new deadline]. We’re happy to answer any questions or provide clarification if needed. Thank you for considering this opportunity. Best regards, [Your Name]
Template for Declining a Tender Submission To maintain professionalism when rejecting a proposal.
Subject: Thank You for Your Proposal – [Your Business Name] Dear [Supplier Name], Thank you for submitting your proposal for [specific items/services]. After careful consideration, we have decided to proceed with a different supplier. This decision was based on [e.g., pricing, specific requirements, or other considerations]. We appreciate the time and effort you put into your proposal and hope we can explore opportunities to work together in the future. Best regards, [Your Name]
Template for Negotiating Terms This can help you approach suppliers to improve their offers.
Subject: Discussion on Terms – [Your Business Name] Dear [Supplier Name], Thank you for your proposal. We’re impressed with your offerings and would like to discuss a few points to ensure the best fit for our needs. Specifically: – [Example: Exploring flexibility on pricing for bulk orders.] – [Example: Clarification on delivery schedules and associated costs.] Could we arrange a time to discuss these further? We’re confident we can reach a mutually beneficial agreement. Best regards, [Your Name]
One of the most effective ways to save money, improve quality, and stay competitive is by regularly asking suppliers to tender for your business. This guide will walk you through the process of cafe and restaurant tendering with simple examples and tips to get started.
Tendering for supplier contracts might feel a bit intimidating, but by following these steps and keeping the communication professional, you’ll gain confidence and see the rewards in your bottom line. Once you’ve done it a few times, it will become a normal part of your annual calendar, and you already have the templates ready to use again.
Preparing to Tender
Invite tenders from your suppliers annually or whenever a contract is about to end. This ensures you’re always getting competitive pricing and the best possible service. Even if you have a great relationship, you gain respect for using a formal process to confirm it – your suppliers are used to restaurant tendering requests and won’t take it personally! You should also consider tendering if a supplier increases their prices, you’re unhappy with the quality or reliability of their service, or you suspect you could get better deals elsewhere.
Before asking suppliers for quotes, take some time to organise your information:
– List All Your Suppliers: Write down everyone you buy from, including food, beverages, cleaning supplies, and packaging.
– Understand Your Needs: Know your required quantities, quality, and delivery schedules.
– Categorise Suppliers: Major suppliers (e.g., meat, dairy, coffee) may need a formal tender process, while smaller items (e.g., napkins, specialty food) might only need a quick price check.
– Review Past Performance: Check your spending and whether the supplier met your expectations.
Preparing a Request for Proposal (RFP)
An RFP is a document or email that invites suppliers to bid for your business. It’s a standard process for large operators, and suppliers are very used to receiving them. Here’s what to include:
– Introduction: Briefly explain your business and what you need.
– Specifications: Be clear about quantities, quality, and delivery requirements.
– Questions: Ask about pricing, payment terms, rebates, flexibility, and references.
– Deadline: Give suppliers a specific date for a response, and make them aware you have also approached others.
Example Email Template:
Approach both current and new suppliers with a professional and friendly tone. If you’re contacting an existing supplier, let them know you’re reviewing all contracts and do value their service. This keeps the relationship intact while showing them you’re serious about pricing, quality and service.
Evaluating and Comparing Tenders
Once you’ve received tenders, it’s time to compare them. Don’t just look at the price—consider other key factors like:
– Quality: Can they meet your standards, especially if it’s cheaper? Does the current quality actually matter?
– Flexibility: How do they handle last-minute changes?
– Hidden Costs: Are there fees for delivery or payment terms? What’s the net effect of a rebate if you exceed a certain annual quantity?
– Reputation: Check reviews or ask for references from other businesses.
See also: How to Negotiate Lower Prices with Suppliers
Using AI for Supplier Management and Restaurant Tendering
AI tools can help analyse data and help with supplier management in a wide variety of interesting ways:
– Spending Insights: AI tracks spending trends and suggests cost-saving opportunities, based on your bookkeeping data and supplier records.
– Stock Predictions: Tools can predict seasonal price changes, so you order smarter.
– Performance Alerts: Get reminders to review suppliers when issues arise – this is often built into your Stock Management System.
– Automate Price Comparisons: AI software can quickly highlight differences in pricing – upload the different price and supply documents and ask for comparisons.
– Analyse Trends: Look for patterns in supplier performance.
– Check Reviews: Use AI to gather insights from online reviews and ratings. Google Reviews can be an interesting quality check.
– Compare pricing and terms quickly (through your Stock Management System)
– Track progress toward rebate thresholds (through your Stock Management System)
– Analyse supplier performance trends.
– Analyse Competing Tenders: Use AI to identify subtle differences between tenders, such as hidden fees, varying delivery schedules, or additional services.
– Predict Supplier Reliability: AI can evaluate historical performance data to predict which suppliers are most likely to meet your standards consistently.
– Optimise Negotiation Strategies: AI tools can provide suggestions on negotiation tactics based on the terms offered by multiple suppliers.
– Ask your favourite AI tool (eg ChatGPT, Gemini, Claude) how it can help with tenering, given what it knows about your business… have a chat!
Negotiating Like a Pro
– Bundle Orders: Combine items to get better discounts – the larger the total weekly order, the better you can wrestle for a better deal.
– Leverage Competition: Use other offers as a bargaining tool without alienating your supplier. Have competing prices and information available during the negotiation.
– Ask for Extras: Try negotiating free delivery or extended payment terms, especially if you can offer something in return eg fewer but larger orders in a week, minimum order size, or flexibility with substitutions.
– Negotiate on the Rebate – that’s the payment you get back for meeting or exceeding a certain annual order size eg 2-3% rebate for annual orders about $300,000. Standard for large operators, and small venues should push for it too!
– Get Everything in Writing – if you have a phone conversation or meeting, follow it up with an email to confirm the details.
– Can You Be Too Aggressive? Sometimes, and it can damage a long-term relationship. But many operators are not assertive enough – your ‘aggressive’ may just be normal to-and-fro for many of your suppliers, they have thick skins.
Maintaining Supplier Relationships
Winning a tender is just the start. Building strong relationships with your suppliers ensures smooth operations. Keep communication open, provide regular feedback, and review their performance at least once a year. This also helps you identify when it’s time to tender again.
Final Tips for Success
1. Set calendar reminders to tender annually or before contracts end.
2. Keep tender-related documents organised for future reference – many of them you can ‘rinse and repeat’ once you’ve done the initial work of setting them up.
3. Share the results with your team so everyone sees the benefits of better deals – some of them may wonder why you’ve made changes.
More Helpful Tender Templates
Template for an Expression of Interest (EOI)This can be used before sending a formal Request for Proposal (RFP).
Template for Follow-Up with Non-Responding SuppliersTo encourage suppliers who haven’t replied to engage with your process.
Template for Declining a Tender Submission
To maintain professionalism when rejecting a proposal.
Template for Negotiating Terms
This can help you approach suppliers to improve their offers.
Check the other useful blog posts on the Foodie Coaches website…
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