In administering these functions, this staff is responsible for developing a list of every product used, individual specifications and projected usage. Economies of scale and geographic location usually dictate the mix of purchases from manufacturers and distributors. Generally, this involves selecting one foodservice distributor as a main supplier for both food and non- food product requirements. One of the main benefits of this concept is the time that is saved ordering, delivering and receiving goods. In addition, the larger the order per stop, the greater the savings to both the chain and the distributor.
Some chains specify two different brands, giving the distributor an option on which one to stock.
Many of the larger chains are requesting that their suppliers provide them with their own private label products. In addition, because of the marketing emphasis placed on brand recognition, it guarantees product exclusivity over their competitors. A recent survey by Price Waterhouse indicates that the Canadian franchise market is still relatively underdeveloped compared to its U.S. counterpart. However, a rationalization process appears to be taking place. The net result is that the franchise system now is made up of fewer players.