Presented at January 2019 Manager Meeting

1. Arena Food Service, Inc.
Sale of Products Outside
of Contract Terms
Managers’ Seminar
Wednesday, January 16, 2019
Sysco-Central Illinois, Lincoln, Illinois

2. Sale of Products Outside
of Contract Terms
Add on VALUE and convenience for our contract clients!
• Allows Arena to be seen as a solution to ALL food service needs.
• Further integrates Arena into the facility increasing the need for
our services
• Provides our contract facilities with convenience and consistency.
• Provides an added measure of accountability in terms of food
safety and responsibility.
• Allows our partner clients to realize the benefits of Arena’s vendor
partners.
• Increases Arena’s purchasing power.
• Incremental increase in sales and revenue.

3. Sale of Products Outside
of Contract Terms
Identify the product or service the client is requesting.
• Logistics of delivery
– Date and time of need
– Location
– Manner in which it will be delivered
• Specific needs
– What type of product is desired?
– Provided bulk or set up with display?
– Any equipment needed?
– Service needs?
• Any special requests that may effect service or costs
• ENSURE WE HAVE A CLEAR UNDERSTANDING OF THE CLIENTS
EXPECTATIONS

4. Sale of Products Outside
of Contract Terms
Identify the costs of the desired product or service.
• Raw Product Costs
– Food costs associated with the product
– Supply costs associated with the product
– Compute unit/per piece cost AND total cost
• Labor Costs
– Estimate time it takes to make the product
– Estimate time it takes to complete the project
– Estimate time it takes for service and delivery
• Does it add to our overall labor or is it easily absorbed into overall operation?
– Compute labor costs for production and service
• Generally, only ADDED labor costs
• Hours needed x Base rate per hour x 25% = Labor Expense (Rounded for convenience)

5. Sale of Products Outside
of Contract Terms
Submit the need for pricing for approval
• Generally speaking we compute secondary item needs as
follows:
– Food Cost + 20%
– Labor Costs rounded to $15 or $18, depending on location
• Submit specifications and costs to your supervisor for pricing
assistance.
• LET THE CORPORATE OFFICE BE THE BAD GUY, if necessary.

6. Sale of Products Outside
of Contract Terms
Submit the pricing to the client for approval
• Communicate your understanding of the need
• Communicate clearly the pricing we plan to charge
• Communicate the products or services we will provide
• Ensure that all expectations are addressed.
DISCUSS PRICING AND ARRANGEMENTS PRIOR TO THE EVENT.
• Preferred: Submit in writing
• Give enough time for client to change mind or make
amendments to order, if practical

7. Sale of Products Outside
of Contract Terms
Additional Info
• Invoice the client through normal channels. Nothing has
changed in this regard.
• Price lists and quick reference materials can be produced for
frequently purchased items or bulk product purchase guides.
• Allows clients to make better, more informed decisions.
• Greatly reduces invoice ‘sticker shock’ and conflict with
clients after the fact.