How does purchasing activities influence the profitability of the foodservice establishment?

In an organization such as the food service industry its major objective impacting the maximization of profit, one of the most vital role in an establishment striving towards success is being knowledgeable in the purchasing activities of on establishment. Conversely, the failure to properly control food costs can have a more devastating effect than overspending in most other cost categories. It is not surprising that the primary concern of many operators is their food cost. As costs increase, this concern grows. Rising food costs often force management to re-examine the operation's ordering / purchasing needs. However in the food service establishment after menu planning is completed, the Ordering / Purchasing control point is the next logical step to be addressed. In fact, the menu determines the ingredients to be purchased, the variety of products needed, and the relative amounts. One of the major objectives of Ordering / Purchasing is to obtain the right quality and quantity of items at the right price from the right supplier. The goals are to maintain quality and value, strengthen the establishment's competitive position, and also to minimize the investment in inventory. Therefore, cost avoidance in Ordering / Purchasing has potentially translated directly to the operation's bottom line of the establishment. To be successful, the buyer must possess many skills. Broadly speaking, the skills of a buyer can be categorized as managerial, technical and others. Managerial skills are necessary because the buyer is a part of the operation's management team. Therefore, the buyer takes on the task to plan, analyze, influence, control, and see the operation as a whole. In maximizing profitability the buyer must also understand the establishment's present position and its