Ch. 7 Business Marketing

Even though businesses produce consumer products they are consumers, too. These products that are purchased are called overhead, they are necessary in keeping the business operating. Businesses that consume products do it out of need unlike and not want. For Hard Rock Cafes the products needed to keep their business running come from several suppliers. Like general consumers, HRC also shop around and compare prices. One of the largest suppliers to domestic HRC’s is Sysco. Sysco produces goods for food service based companies such as meat, cleaning supplies, napkins, aluminum foil, straws and plastic cutlery. By offering a wide variety of products and services to restaurants Sysco can offer a restaurant discounts based on the quantity and frequency of orders.

Hard Rock also consumes services to improve its business like training for its staff. Safety and alcohol training comes from an outside company paid for by HRC. Many times these trainings are required by law but even when they are not HRC chooses to invest this knowledge to its entire staff. Another service HRC purchases in public relations. Hard Rock public relations agencies vary by region and product line but each category has one. The PR company for the Northeast region cafes is different from the PR company for the Las Vegas hotel and Casino.

Supplies for restaurants are expensive. Hard Rock is eager to save money by using less. One way HRC cuts back on waste are by requiring its staff to ask if patrons need napkins and plastic silverware when they pick up to go orders and using smaller inexpensive bags. This is also marketed as better for the environment but is usually out of need to cut cost.

Uniforms are another way HRC loses bug bucks. The purchase of uniforms for the company is a contracted service HRC invest in. New full time employees are given too uniforms for free. Some employees are will stay with the company for many years providing great customer service; others may leave shortly after they’ve been hired. No employees are required to return their uniforms. After seeing high turnover in the restaurant industry some other chain restaurants require uniforms to be returned when the employee leaves or the cost will be taken out of their last check. There are many components of operating a restaurant. They are expensive but necessary. HRC is an example of a company that is doing it right and making money doing it.