How hard negotiation with food service vendors can hurt your company

Dear purchasing managers,

Imagine this scenario: You are hungry and looking forward to your lunch break. You go to the cafeteria and see a long queue of people waiting for their food. You join the line and wait patiently. When you finally reach the counter, you are disappointed to see that the food options are limited and unappealing. The portions are small and the prices are high. You reluctantly pick something and pay for it. You sit down and take a bite, only to find that the food is bland and stale. You feel unsatisfied and frustrated.

Now imagine this scenario: You are hungry and looking forward to your lunch break. You go to the cafeteria and see a short queue of people waiting for their food. You join the line and wait briefly. When you reach the counter, you are delighted to see that the food options are varied and appetizing. The portions are generous and the prices are reasonable. You happily pick something and pay for it. You sit down and take a bite, only to find that the food is fresh and tasty. You feel satisfied and happy.

Which scenario would you prefer? Which scenario would make you more productive and motivated for the rest of the day? Which scenario would reflect better on your company’s image and reputation?

I think you know the answer.

But do you know what makes the difference between these two scenarios? It’s not just the quality of the food, but also the quality of the relationship between your company and the food service vendor.

The food service industry is one of the hardest hit by the COVID-19 pandemic and its macroeconomic consequences.. The supply of food products has also been disrupted by the rising costs of inputs, transportation, labor and taxes. The food price inflation has soared, eroding the purchasing power of consumers and affecting their food choices.

As a result, many food service vendors are barely surviving and struggling to maintain their quality standards. They are operating on razor-thin margins and have little room for negotiation. They need your support and understanding, not your pressure and demands.

If you negotiate too hard with them or force them to lower their prices or compromise on their quality, you may think that you are saving money or getting a better deal. But in reality, you are hurting yourself and your company in the long run.

You are hurting yourself because you will end up with poor quality food services that will affect your health, mood and performance. You will also lose trust and respect from your colleagues and employees who will see you as a penny-pincher or a bully.

You are hurting your company because you will damage its reputation and image as a socially responsible and ethical employer. You will also risk losing your loyal and reliable food service vendor who may decide to quit or go out of business.

Is that what you want? Is that worth it?

I don’t think so.

That’s why I urge you to be reasonable and realistic in your negotiations with food service vendors. Don’t squeeze them too hard or make them regret working with you. Don’t take advantage of their vulnerability or exploit their desperation.

Instead, try to build a win-win relationship with them. Recognize their value and contribution to your company’s well-being and productivity. Appreciate their efforts and challenges in providing you with quality food services. Reward them for their performance and loyalty. Help them grow and improve with constructive feedback and suggestions.

By doing so, you will not only help them survive and thrive in these tough times, but also ensure that your company gets consistent and reliable food services that meet your needs and expectations. You will also create a positive and respectful work environment that fosters trust and collaboration among all stakeholders.

Remember, we are all in this together. We need each other to overcome this crisis and emerge stronger than before. Let’s be kind and fair to each other.

Thank you for your attention and consideration.