Before we joined Dining Alliance, every month I was wrangling with the chef to determine why our food costs were so high. We had a 30% target and every month our costs were coming in over 35%. The first thing we did with the Dining Alliance was to switch to Pepsi and our costs went down 23%. Second, even though the Alliance chose my then-current produce vendor as our preferred vendor, my cost for produce went down between 20% and 25%. These savings continued as we chose a paper vendor, a meat vendor and a broadliner. I expect these savings to continue as we choose a dairy vendor, a linen company, etc. The end result is that for the last few months my food cost is under 27%. Annualized, I expect to save $75,000 to $100,000 directly as a result of my participation with the Dining Alliance. Over the next months and, perhaps years, as we endure this recession, it is going to be very difficult to increase sales. Therefore, it is even more important to control costs, and Dining Alliance will help us do that.
