How Local Restaurants Can Partner To Form Group Purchasing Power

How Local Restaurants Can Partner To Form Group Purchasing Power

Published by FOXX Distribution Team on 20th Feb 2023

How FOXX Distribution is Helping Local Restaurants Access Better Pricing, Supplies, and Inventory


Running a restaurant is no easy task, with high costs and tight margins making it challenging to turn a profit. One of the biggest expenses for restaurants is the cost of supplies, ranging from food to kitchen equipment to cleaning products. While large restaurant chains and healthcare organizations have long been able to access better pricing and purchasing power through group purchasing organizations (GPOs), locally owned restaurants have often been left out of the equation. In this blog post, we will explore the limitations of GPOs for local restaurants and highlight how FOXX Distribution is filling a gap in the market by offering a localized solution for independent restaurants.

GPOs and the Healthcare Industry: 

Group purchasing organizations (GPOs) have become standard practice in the healthcare industry, allowing hospitals and other large healthcare organizations to negotiate better pricing and terms for their supplies. GPOs are able to leverage their purchasing power to negotiate bulk purchases and secure discounts from manufacturers and suppliers. This has helped to reduce costs for healthcare organizations and allow them to focus on delivering high-quality care to their patients. However, smaller healthcare organizations and independent practices may face challenges in accessing GPOs due to their limited negotiating power and lower purchasing volume.

The Limitations of GPOs for Local Restaurants: 

Similarly, locally owned restaurants face challenges in accessing GPOs and obtaining the same pricing and purchasing power as large restaurant chains. Independent restaurants typically have lower purchasing volume and less negotiating power than their larger counterparts, making it more difficult for them to secure favorable pricing and terms. This can have a significant impact on the profitability and sustainability of local restaurants, as they may have to pay higher prices for their supplies and struggle to compete with larger chains.

FOXX Distribution: A Local Solution for Local Restaurants: 

FOXX Manufacturing is a parent company that manufactures and distributes restaurant supplies to locally owned restaurants through FOXX Distribution in the Kansas City area. By leveraging our purchasing volume, FOXX Distribution acts as a purchasing group that allows individual restaurants to benefit from the larger scale of operations without having to own and operate multiple locations themselves. This can be a significant advantage for locally owned restaurants, as they can access better pricing and more favorable terms for their supplies. As both the manufacturer and distributor, we are able to create a local GPO in Kansas City for our restaurant customers.

Custom Stocking Solutions for Local Restaurants: 

FOXX Distribution can also custom stock inventory for our partners and customers. Normally, a restaurant would have to order 1,000,000 units of a product and pay for these upfront. We offer stocking solutions so that our customers can have products that are customized to their needs without the upfront cost. This allows local restaurants to get the supplies they need without having to worry about inventory management or upfront costs.

Benefits of Partnering with FOXX Distribution: 

Partnering with FOXX Distribution offers several benefits for locally owned restaurants, including:

  • Access to better pricing, terms, and custom inventory solutions for supplies
  • Increased negotiating power and purchasing volume
  • Access to a wider range of supplies and brands
  • Better customer support and service


In conclusion, FOXX Distribution is providing a localized solution for independent restaurants that can help level the playing field and give them access to better pricing, supplies, and inventory. By partnering with FOXX Distribution, local restaurants can benefit from a purchasing group that offers the same advantages as GPOs but on a more local level. This can help to support local businesses, foster a stronger sense of community, and provide customers with high-quality dining experiences. At FOXX Distribution, we believe that by working together, we can help to build a more vibrant and sustainable local restaurant industry.