Staying competitive and profitable in the dynamic restaurant industry is a constant challenge. One essential aspect that can help restaurants maximize their revenue and minimize costs is leveraging manufacturer rebates.

What are manufacturer rebates?

Restaurant operator reviewing report on tablet

Restaurant manufacturer rebates are financial incentives offered by suppliers to restaurants based on their purchase volumes or specific marketing agreements. Restaurant owners and operators typically recognize rebates through Group Purchasing Organizations or Buying Organizations (GPOs or GBOs). Group Buying aggregates individual restaurants into a large collective with the purchasing power to negotiate lower prices from manufacturers and distributors. Once programs are negotiated, the GPO/GBO can pass along any eligible rebates to individual restaurants that have signed up within the GPO/GBO. Restaurant manufacturer rebates are available for many of the staple items of a working kitchen, such as dry goods, poultry, meat, seafood, etc. A good rebate program will also provide savings on non-food items as well – think chemicals, cleaning, paper products, and more.

Top 5 benefits of Manufacturer Rebates

  • Cost Savings
  • Greater visibility into product pricing and purchasing habits
  • Enhanced relationships with suppliers
  • Menu Diversification
  • Boosted profits

How operators can combine rebates with menu optimization to improve restaurant profitability

When considering how to improve your restaurant’s profitability, regularly analyzing your COGS is critical. 

Restaurant operator reviewing report on laptop

  • Are you purchasing ingredients at the best price?
  • Are you purchasing in the most cost-effective quantities?
  • Can you save money by switching to equivalent products made by other manufacturers or changing distributors?

Beyond finding efficiencies within your current buying patterns, you should consider where you can optimize your menu to reduce costs and increase sales. If you have not established a menu engineering process with your chef in the last year, now is the time to do so. A well-engineered menu will highlight the dishes that sell at an increased velocity with a low margin and alert a chef to the poor selling plates that would put more dollars into the bottom line if sales were to increase. When you combine these changes with optimized purchasing, you can make substantive improvements in your COGS.

Using software to increase restaurant profitability

Once you’ve whet your appetite for savings through manufacturer rebates, it’s time to examine your financial performance closely. RASI offers purpose-built software for restaurants to help you handle costs, understand financials, and chart a course for increased profits. As a leading restaurant accounting software solution, RASI integrates with your POS system so that you have the latest sales and performance data. RASI’s system delivers integrated accounting and payroll solutions for everyday operator.

Thousands of restaurant operators nationwide have made RASI their choice for restaurant management. When you sign up, a dedicated team will onboard your operation, continuously provide industry education and best practices, and coach your team on using the software to set and meet financial goals. Contact us today for a free demo!