Restaurant Buying Groups - Leverage Buying Group reviews
A name keeps popping up in the restaurant Group Purchasing Organization space.
With increasing frequency.
Leverage Buying Group.
Let's look at Leverage Buying Group and review their strengths, weaknesses, and where they are in the market.
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You can quickly quote LVG's pricing on actual invoice here:
Or you can jump to any of these topics:
Lots to cover.
Let's get started with the basics.
LVG is a food service buying group or Group Purchasing Organization.
Essentially, the allow restaurants and other hospitalities to buy under a large purchasing agreement to get better pricing.
Much better pricing.
This is off of all eligible expenses (primarily food, beverage, and supplies).
The "eligible" is important there and continues to be one of the main strengths for LVG.
We'll explain further below.
For now, just know that LVG allows smaller restaurants or chains to buy as if they are big nationwide chains.
You still have your own, discreet:
It's all still between you and the 3rd party supplier(s) but with a much better pricing structure.
You can find more on how food group purchasing organizations work here.
How are food GPO's like Leverage Buying Group able to do this?
Let's look at that piece.
The big question is this...
Why would they go from independent pricing to large chain pricing for a small restaurant under the GPO purchasing agreement.
Maybe even to an existing account?
Pure and simple.
Here's the deal.
A large food distributor may be getting 20% of a given restaurant's purchasing.
The rest goes to smaller distributors that the restaurant has a history with.
It's what they know so they don't change.
It takes a lot to change when you're busy and comfortable with the status quo.
In fact, it does!
Now the restaurant would be crazy not to put more of it's weekly purchase with the GPO like Leverage Buying Group.
Maybe they kick it up to 50-60%
Maybe even higher!
The big food distributor has less margin for that given restaurant (if they had it at all) but across a much larger gross receipt.
The distributors are in a brutal game of market share competition with each other.
The bigs are fighting the bigs.
And the small specialized food distributors.
Sal's Fish Supply.
You see the trucks everywhere.
They are increasingly driven by market share and revenue growth at the management level and all the way down to the local sales reps.
GPO's offer an advantage.
In fact, if you don't play by the new rules, you may find yourself hitting significant head wind.
How much so??
It's coming fast to hospitality and restaurant.
Faster than it was for hospitals where it currently saturates how hospitals buy.
If you're not with a GPO like Leverage Buying Group, you probably will be soon.
Above are the market stats...what about Leverage Buying Group stats?
The main GPO's are private companies so their stats have to be teased out with available data, hearsay, and a crystal ball.
But here it goes...
A few things jump out.
They came out of nowhere and have quickly become a player in the market.
There's a reason for this.
They have one of the biggest food suppliers in the nation as their partner.
It may be THE reason upon which to pick a GPO.
We'll explain this later.
The other key take away from the status is the pricing.
It's easy to see what it might mean for you.
You can request your quote based on actual invoices or selected items here:
The list of items is important. Here's why...
LVG has a contract with one of the top two nationwide food distributors.
If you know the market, there are two giants in the field and then it drops off pretty quickly.
Leverage Buying Group is partnered with one of them!
Why is this important?
Is it important when picking a GPO?
YES!
A resounding Yes.
It might be the most important consideration after pricing.
We want our savings on everything!
You name it!
The more the better since we're getting large chain pricing.
A full-line distributor that's nationwide will give us the most (our apologies)...leverage.
Pricing leverage.
Not 20%.
The partner affects this decision.
Also, we want the "system" that a large distributor brings to our day to day operations.
We want ease and speed in:
Keep in mind that all the day to day is still done with the distributor for the most part.
They also add in some bells and whistles to look for additional savings based on purchasing but the contract is what we're after.
For this reason, their partnered food distributor is a huge coup for LVG.
There are many Group Purchasing Organizations but most are in the health care industry.
That's where it all started for GPO's.
In the food service segment for restaurants and hospitality businesses, you have the following:
We have an entire article comparing the major food GPO's here or more detail on the best restaurant buying group here.
Here's a quick comparison chart of the main 5 players:
We'll touch on LVG's specific comparison, strengths, and benefits versus the other food GPO's below.
Right now, let's focus on the Leverage Buying Group.
We're in the process of compiling or aggregating the online reviews for Leverage Buying Group and the other competitors.
We hope to have this information compiles, cleaned-up, and online shortly!
So...how do we compare any of the food buying groups including LVG?
We have to keep in mind why we're even reading this to begin with.
It's all about one thing...
Otherwise, we would continue as is.
The GPO's all tout various bells and whistles but we want the leveraged purchasing.
That's the ONLY reason most restaurants are considering GPO's at all.
So...since all the GPO's offer pretty comparable purchasing agreements, it then comes down to the secondary concern.
Who do they partner with?
They work between restaurants and food distributors to negotiate the pricing.
All your day to day is still with the distributor:
For that reason, we really want to find a good distributor we can work with.
Since we're getting great pricing, we also want a broadline distributor with a range of products and quality levels to meet varied tastes and needs.
That's where Leverage Buying Group really shines.
It's a big reason for their meteoric climb in the food GPO segment.
If you're in the hospitality business, you know that the big 2 in the US are giant players.
Much bigger than all other food distributors below them.
This gives LVG's customers a trusted and powerful ally.
It also gives them all the sophistication in ordering, delivery, and process that such a player affords.
You can see the comparison above of the major food service gpo's but really...it's the partner we need to consider above almost all else.
How much can we expect to save with LVG?
Of course it varies according to the product mix you're looking to purchase but it's fair to say...
Imagine taking 10% off your purchasing costs year-round for comparable or better product.
It can go up from there depending on what is purchased.
We've seen items with 30%+ savings.
It's easy to find out at no cost.
See below!
Just complete the Quick Pricing form here:
Of course, we can help with any questions beyond that.
Keep in mind that there is no cost for our assistance and this is the best pricing available.
We advocate for for restaurants and hospitality companies to understand, compare, and choose the best food GPO for them.
If you decide it's the right fit, we can get you to a dedicated rep who will guide you through the enrollment.
There's no cost for our assistance!
It's a pretty fast and easy process.
Very fast.
Expect to see LVG continue it's fast growth.
They have the supplier and that's what matters in this world of hospitality purchasing.
If you're not in the fold, you'll be paying much more for everything your restaurant or hospitality company purchases.
That's not a good strategy with the increasing costs and competition in our market.
Especially if the restaurant down the street has leveraged purchasing as his or her back.
We're happy to help with questions.
You can always email us or request a quick quote here:
How can we help?!
Again, there is absolutely no cost to you for our services. Email us at help@eaterybuyinggroup.com
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and more!
"No... Thank you. I wish I had found group purchasing earlier. It's a no-brainer"
"We have seen a reduction of 18% for last quarter for one location. Can't wait to roll it out other sites."
"The cost savings I realized on purchasing went right back into upgrading our meat and produce quality. We basically subsidized the needed move to higher grade at no cost."
"Thank you so much! Very happy with service. If there is any way I can contact supervisors to let them know about your great service let me know"
"I'll be honest...I didn't believe the pre-rollout saving estimates. Seemed to good to be true. I'm pleasantly wrong on that"
"After test at one location, we're ready to move forward across chain. Great resource to have. "
"Wow, I can't thank you guys enough for your help...I couldn't imagine trying to tackle this on my own!"
"Thank you so much for your marvelous work. I don't want to tell any of my restaurant buddies so this stays with us"
Understand how to use the top purchasing groups to significantly save on Restaurant food and supplies expenses.
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