How To Cut Meat-Sourcing Costs Without Compromising on Quality

Whether you’re opening a brand-new restaurant or simply hope to reduce expenses for your existing hospitality business, the cost of meat can be a daunting element of your overall budget. Finding ways to trim your meat-related spending will free up much-needed funds, but if you haven’t reevaluated your protein costs lately or are delving into inventory management for the first time, this goal is easier said than done.

Luckily, we recently connected with a pair of meat-sourcing experts: Evan David and Mike Saperstein, co-owners of Sunshine Provisions in South Florida, who shared some valuable tips for bringing high-quality meat into your restaurant without breaking the bank. 

Consider Working with Smaller, Local Distributors

The idea that a large-scale meat purveyor would offer lower prices seems fairly intuitive, but David and Saperstein encourage restaurateurs to think about whether partnering with a smaller distributor might ultimately prove more lucrative for their business.

If you’re launching a new restaurant, Saperstein says that a smaller and more “hands-on service company can educate the customer and really teach them how to build a better program within their establishment from a standpoint that’s a mix of cost and quality. This helps them merchandise their menu properly.” This in turn makes it easier to charge market value.

The big distribution companies all operate on a more-is-more basis, which makes sense for their bottom lines. “But a smaller USDA processor and distributor can be more flexible and can give [you] a good mix [of product],” Saperstein says.

For instance, he tells us that Sunshine Provisions will work with restaurants on a personal level to help them stock their kitchens at a price that works for them. “For middle meats like ribeye and tenderloin, we can cut the meat for them and portion it in certain ways that will let them use it for a few different dishes on their menu [at once]. And then we can come up with some more alternative cuts that can offset an expensive tenderloin or a ribeye at a cheaper cost like a hanger steak or a bavette," Saperstein explains. "We love burgers for that as well; sometimes people are selling burgers for the same price as a steak on the menu. If [a restaurant is] paying in the $4 to $5 range for a nice gourmet burger in this market and charging $21, they’re making a lot more money off of that than they would off of a steak."

An issue that often plagues new restaurants is over-ordering; inexperienced owners and managers worry about running out of their most popular items, so they overcompensate by placing large bulk orders of meat that they then struggle to store and sell before expiration. But ordering through a smaller operation that’s local to you can eliminate that risk. “A [meat] processor in your area with a USDA license that’s fabricating and cutting local steaks can be a big help for a new restaurant that’s not great at doing inventory yet," says David. "It can prevent them from over-ordering these expensive items. And if they end up needing more inventory, a local processor can do four or five-days-a-week deliveries.” 

Working with larger purveyors also brings the problem of stagnation. “You’re not getting very unique offerings because everyone is serving the exact same products from the same big companies,” Saperstein explains. Smaller purveyors change up their offerings more regularly, so you’ll have opportunities to serve unique cuts, which restaurants that exclusively work with big distributors don’t have available.

Remember that Cheaper Cuts Aren’t Always the Most Economical

Lower-cost (and lower-quality) meat can seem like a reasonable way to shave down a restaurant’s food budget, but David and Saperstein assure us that a bit of extra investment in the product itself will prove rewarding in the end.

“Using a top-quality choice of beef and [meat options like] Duroc pork only costs an extra 50 cents or $1-2 per pound, but you’re doing better for the environment, and you’re offering higher-quality proteins for your customers,” David says.

On the poultry side of the equation, “if you’re serving cheap chicken that’s been pumped with saline solution [like many factory-farmed chicken cuts are] and think that you’re saving money when you mark it up [on the menu] three or four times, know that one send-back of a product that’s inferior will mean that your cost savings are gone,” Saperstein says.

Buying slightly more expensive meat that boasts a higher quality level will allow you to increase menu prices in a way that’s justifiable to customers, and those lifted rates can cancel out the extra upfront cost.

If you’re ready to explore different meat options, Saperstein urges you to “sample from different companies” and decide for yourself who offers the best-tasting meat at an acceptable price. If you have no idea where to start, follow Saperstein’s advice and “hire a consultant” who specializes in restaurant stocking and can guide you from an educated position.

meat prices meat distribution
(Photo: bit245, iStock / Getty Images Plus)

Don’t Hesitate to Change Up Your Meat Offerings When Necessary

Sometimes, restaurants can get stuck in an ordering rut, especially when they’ve been working with the same meat purveyor for years. This may unfortunately result in less-than-beneficial pricing, as Saperstein explains. “When you’re on autopilot, you may be getting taken advantage of on pricing, especially on standing orders,"  he says. "We move our pricing weekly as the market moves, but when restaurants have contracts with the large vendors, they think that they’re getting the best price.”

But that price isn’t reflecting the most up-to-date information. That’s why you need to regularly reevaluate your standing orders and use real-time figures to help you decide whether adjustments need to be made, and working with a company that will let you make those changes is essential.

One big factor that can impact meat prices is seasonality. David offers the example of chicken wings; during major sports seasons like March Madness or the NFL playoffs, prices of chicken wings “can double” for restaurants. David says that he’s even seen chicken wings listed on menus at “market price” and that the pricing for items like chicken wings “has been much more inflated than beef has been.”

Transportation and labor costs add to the high rates of in-demand items during specific parts of the year, so restaurants need to be cognizant of that and work those annual fluctuations into their business models.

Plant-based Meat Alternatives Can Expand Your Customer Base

Even meat purveyors know that plant-based meat alternatives are the wave of the future. “We’re a little unique in the protein world that we don’t fear [plant-based meat]," says David. "We embrace these things. We've actually been looking and testing a lot of plant-based products to complement our proteins because we feel like every menu should have vegan option.”

He’s excited about the idea of providing variety for meat-free diners so that they don’t have to solely rely on the same Impossible Burger. "If a vegan [or plant-based diner] is going out to eat multiple days a week, they can't just keep ordering the same dish," says David. "They need to step out of their box, and so do the plant-based ‘meat’ purveyors. Mike and I have been testing a lot of products recently, and we tend to look for products that are a lot cleaner, with five ingredients or less.”

By working with distributors to explore plant-based options that may be a bit off the beaten path, restaurants can pique diners’ interest and cater to a broader demographic.

 

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