Foodservice Distributors and Gas Prices

Discussion in 'Professional Chefs' started by emhahn, Apr 17, 2005.

  1. emhahn


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    I don't know if everyone is aware of this or not, but right now Congress is considering whether or not foodservice distributors can charge a surcharge (automatically) on each invoice.

    This is kind of ****** really, because most distributors already charge for fuel costs anyways with the products you buy. (Inclusive to the cost of products).

    Many distributors have minimum orders already, so they recupe their operating costs.

    Any thoughts on this?

  2. nowiamone


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    I spent several years working in the transportation business, before my husbands health change and I opened my restaurant. A fuel surcharge is a very clean way to handle the ups and downs of the cost of fuel. A transportion company does factor a base cost for fuel in it's operating cost, but when the cost of fuel fluctuates often and greatly, the supplier faces refactoring, printing new price lists, etc. far to often. If the fuel cost goes down, you won't see a benefit if it's all inclusive, the end pricing seems to stay the same till it goes up again.
    With a surcharge on the fuel, it's a clean way to pass the cost on; the end purchaser should see a increase/decrease in the cost of fuel easily and more often. You can monitor the bills, look them in the eye and say "the price of fuel came down .25 last week, when am I going see to see it on my invoice?"