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Allocation
Hey there, restaurant owner! Let’s talk about something that can make or break your beverage program or specialty food offerings: Allocation.
What is Allocation?
Allocation is how distributors divide limited or rare food and beverage products among restaurants. Think of it as your “share” of items that everyone wants but not everyone can get, like highly sought-after wines, craft spirits, seasonal ingredients, or specialty products.
It’s basically the distributor saying, “We only have 30 bottles of this award-winning small-batch gin for the entire Delhi market, and you’re getting 3 bottles.”
Why It Matters for Your Restaurant
Securing good allocations can:
- Give you exclusive menu items that competitors don’t have
- Create buzz among foodie customers
- Allow you to charge premium prices for rare items
- Build a reputation as a destination for specialty offerings
- Create urgency with “limited availability” items
Real-World Example
Let’s say you want to offer Amrut Fusion Single Malt (an internationally acclaimed Indian whisky), which is produced in limited quantities.
When you call your distributor, they explain that they only get 24 bottles monthly. Based on your relationship, order history, and restaurant profile, they allocate you 6 bottles per month, more than most restaurants, but still limited.
You create a special whisky flight featuring this rare pour, mention its limited availability on your menu, and train your staff to share its story. The exclusivity makes it one of your most profitable bar offerings, and whisky enthusiasts specifically visit your restaurant to try it.
How to Improve Your Allocations
- Build strong distributor relationships: Regular orders, prompt payment, and personal connections matter tremendously.
- Demonstrate product knowledge: Distributors favor restaurants that properly showcase and sell premium products.
- Create visibility: If you feature products prominently on your menu and social media, distributors will notice.
- Be reliable: If you’re allocated rare items, consistently purchase them, and don’t leave distributors hanging.
- Negotiate during slow seasons: Distributors may offer better allocations during their slower periods.
Remember, allocation isn’t just about getting rare products, it’s about creating unique experiences that differentiate your restaurant from competitors. When managed well, your allocation strategy can become a significant competitive advantage!
