Case Study

Retail Business Saves $140K by Becoming a Foodbuy Member

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The Challenge:

The Member was self-operating all cafeterias and purchasing without using any GPO programs. Because of this, they were spending more on food products than necessary. While some operators have concerns about group purchasing organizations restricting purchasing, this business was reassured that Foodbuy’s flexible model would allow them to transition seamlessly.

The Solution:

The Foodbuy team completed a market basket to assess potential savings. This revealed that roughly 30% of the customer’s current spend was on items that Foodbuy had contracted. Joining the Foodbuy program immediately decreased the Member’s costs on these items by 13%. Additionally, Foodbuy’s distribution expertise were leveraged to help negotiate a lower markup with the Member’s current distributor partner. This resulted in an additional 5% savings. After being on the program for a few months, the Foodbuy team analyzed their spend and provided several product recommendations. The Member reviewed samples and decided to switch several items, delivering an additional 14% in savings.

The Results:

Saved over $70K through GPO programs and $70K more through distributor negotiations

Saved an additional $25K through purchasing optimizations

Gained access to industry experts, additional resources, and competitively managed contracts at no cost



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