Developing a Purchasing Process - Knowledgeable Tutor

Table of Contents

Introduction
Company Overview
Chick-fil-A Commissary
Purchasing Process
Conclusion
References

Introduction

For a restaurant business to be successful, its management should establish a strong purchasing process that includes both selection and procurement. The process should be well organized in order to control costs and deliver the best possible product for the companys target customers. Chick-fil-A, a major fast food chain, has recently established a Chick-fil-A Supply as part of its distribution network to ensure consistency of delivery and high quality of products throughout the chain. The purchasing process for each individual restaurant in the chain can be optimized using modern purchasing technologies to facilitate the quality of supply.

Company Overview

Chick-fil-A is one of the largest American fast food restaurant chains that specializes in chicken sandwiches. The company operates more than 2,600 venues located in 48 states. Chick-fil-A was originally founded as the Dwarf Grill in 1946, then changed its name to Dwarf House until rebranding as Chick-fil-A in 1967 (History, n.d.). The first restaurants of the chain were located in suburban malls food courts, but since the 1980s, the company has been focusing more on the stand-alone type restaurants, expanding its presence all over the country. The average restaurant size is around 5,000 square feet and seats approximately 128 customers. The layout of the restaurant sees customers coming in from the side of the ordering counter, getting their order, and seating both inside and outside the facility.

Chick-fil-As menu is centered around chicken, with the companys trademark slogan, We didnt invent the chicken, just the chicken sandwich, referring to its flagship menu item, the Chick-fil-A chicken sandwich. The standard menu includes eight categories: classics, wraps & salads, sides, breakfast, desserts, beverages, kids meals, and trays. According to the companys statistics, the most ordered menu items of 2018 included sandwiches, strips, chicken biscuits, hash browns, nuggets, waffle fries, iced tea, and lemonade (Lewis, 2018). While other fast food chains constantly expand their menu offerings, Chick-fil-As remains focused on chicken sandwiches and offers a simple, standardized menu throughout its venues.

The companys business strategy is focused on providing good customer service and high-quality food. The company retains ownership of each restaurant, with franchises only having to invest $10,000 to become an operator and undergo a rigorous training program to ensure that they would provide high-quality customer service. According to Chick-fil-A, much of the food served at their restaurants is raised and grown on local farms all over the country, and the company is committed to ensuring that its suppliers follow rigid quality standards (Where our food comes from, n.d.). In 2008, Chick-fill-A became the first fast food restaurant to become completely trans-fat free, and it claims that it only uses chicken grown on farms and free of antibiotics.

Chick-fil-A Commissary

Since 2019, Chick-fil-A has been operating in Redwood City from DoorDash Kitchen, which is a shared commissary kitchen designed for restaurant brands looking to expand their off-premise sales without opening a physical restaurant. Using a commissary kitchen allows foodservice providers to meet the growing demand for off-premise orders and provides more control over every stage of the restaurant process from receiving to preparation (Arnett, 2020). Chick-fil-A reported that operating out of DoorDash Kitchen is part of a brand initiative to provide more convenience to customers (Luna, 2019). Together with entering into a partnership with DoorDash Kitchen, the chain has also opened several delivery-only units that have no dining room or drive-thru.

In 2019, Chick-fil-A created Chick-fil-A Supply, a part of the chains distribution network aimed to ensure that restaurants have the ingredients, packaging, and other items they need to serve customers. The first Chick-fil-A distribution center opened in Cartersville, Georgia, and has the capacity to serve up to 300 restaurants (Kelso, 2019). Chick-fil-A Supply provides a more seamless distribution process and allows the company to better manage food safety parameters and quality control (Kelso, 2019). Single restaurants served by the distribution center get the ingredients at unified prices and can be sure of timely and quality delivery and the uniform quality of products.

In order for each individual restaurant to fulfill customers needs, they need to have a stock of the following food items: chicken, cheese, condiments, vegetables, salad mixes, buns, and desserts. The soft drink suppliers include Coca-Cola, Minute-Maid, Buddy Fruits (the supplier of apple sauce), and Simply Orange. With the company offering no alcoholic beverages, it does not require any special licenses. Non-food items include primarily restroom supplies, drink cups, and food packaging.

Purchasing Process

Product ordering. Each restaurant needs different quantities of products, and this quantity should be calculated based on their average consumption and the estimated consumption for the period. Perishable items, which include fruits, vegetables, meat, and dairy products, should be bought frequently to ensure freshness. Frozen food has a longer lifespan and can be served in a freezer. Non-perishable items can be ordered on a weekly and monthly basis. Having a unified distribution center allows each individual restaurant to depend less on each individual supplier and be sure of timely delivery and continuity of supply. Order times should be agreed upon with the distribution center, with order quantities determined by the restaurant and updated according to its current needs.
Storage management. The basic goal of storage management is to prevent the loss of products. It includes providing correct storage for each item, ensuring that temperature-sensitive items are stored quickly and correctly and that freezers and refrigerators are not overloaded (Walker, 2017). Adequate temperatures and storage specifications of each item need to be observed to ensure continuity of supply. Each restaurant needs to have a sufficient storage area and qualified employers to handle products upon delivery.
Product identification. When delivered, products need to be correctly identified to ensure their proper storage. Identification includes inspecting the products for quantity and quality to control any discrepancies, checking delivery invoices, products conformity with required temperature statutes, and the condition of packaging (Walker, 2017). Items should be sorted and stored based on their shelf life. Each restaurant needs to possess the necessary equipment and qualified personnel to ensure correct identification.

The proposed purchasing process corresponds with five main purchasing objectives. Maintaining adequate supply and minimizing investments are ensured through a fixed delivery system through the unified delivery center. Uniform product quality and lowest prices are maintained by Chick-fil-A Supply, which means that each individual restaurant does not have to deal with independent suppliers, compromising on prices and quality. The companys competitive position is maintained through providing better customer service and the uniform quality of food throughout the chain.

Conclusion

For Chick-fil-A to establish an effective purchasing process, each individual restaurant needs to work in cooperation with the companys distribution center. Uniform product quality, adequate supply, low prices, and the companys competitive position are maintained with the help of the centralized supply system and the efforts of each individual facility. Ensuring correct product identification, storage management, and product ordering are the main elements of each individual restaurants contribution to the effectiveness of the supply system.