GPO and Contract Feeder 101
What is a GPO?
A company that buys goods/services for another company.
What is the largest contract feeder we work with, comprised of many divisions?
Compass.
What is the best way to find out what type of account you are at?
Ask.
What is the formula for food cost?
unit cost / retail price
Why do GPOs want rebates?
They are untaxed.
What is the main GPO-Contract Feeder partnership we discussed today?
When GPOs and contract feeders use central ordering systems, how do we get that invoice?
Electronic delivery invoice (EDI) in eVos.
What is the formula for gross profit?
Total revenue - cost of good sold
What is a contract feeder?
A company with an agreement to provide meals for their client.
What company owns Avendra, Trinity, and Harvest Table?
Aramark.
Which type of account is most likely to have an up-to-date cafe with branded concepts?
Profit and loss account.
A customer wants 50% food cost. The item's unit cost is $0.75, what should the retail price be?
$1.50
What does it mean to be an "approved" supplier for a GPO?
You have an agreement with that GPO and buying your products is "compliant."
What do Bon Appetit, Chartwells, Flik, and Unidine all have in common?
They are divisions of Compass.
In a fee account - does the contract feeder pay the client, or does the client pay the contract feeder?
Could be either! You have to ask.
For a c-store - would they be more interested in food cost or gross profit?
Gross profit.
Name one reason why a client would use a contract feeder/GPO.
- Manage diets
- Be responsible for legal issues with food
- Focus on their strengths and leave food to food professionals
Name one company OTHER THAN COMPASS owned by Foodbuy.
Healthtrust, Navigator, HHS
At a managed account, who employs the food service staff?
The client.
For a college board plan - are they interested in food cost or gross profit?
Food cost.