Teaming Up: How to Strengthen Dealer-Operator Relationships

The original menu for Los Angeles-born Dave’s Hot Chicken focused on its namesake chicken tenders, sliders and sides. But it wasn’t long before this rapidly growing QSR realized a sweet treat was a perfect combination with the spicy chicken, and it introduced shakes and slushers to the menu. The additions meant installing shake and slusher machines at 300 existing units.

“Working with our dealer helped this rollout go smoothly,” says Tiffany Vassos, senior vice president of design and construction at Dave’s Hot Chicken. “There was a long lead time on the shake machines, but they helped us by preordering and then also working with the manufacturers to ensure on-time deliveries. Thanks to the dealer’s work on logistics, the installations had minimum impact on daily operations.”

“Thanks to the dealer’s work on logistics, the installations had minimum impact on daily operations.”—Tiffany Vassos, Dave’s Hot Chicken

This is just one example of how dealers are out on the front lines, working to improve efficiencies, speed growth and solve problems for the operators they serve. “When issues arise, our customers rely on us to have a solution,” says Brad Wasserstrom, president of Wasserstrom, which recently grew its offerings with the acquisition of Breckenridge Kitchen Equipment & Design. “It’s our partnerships that allow us to grow stronger together through shared commitment and collaboration.”

Regular communication with vendor partners helps ensure smooth installations for Dave’s Hot Chicken.

Reaping the Benefits

The way one operator FER interviewed at a global restaurant company describes the relationship with his dealers is like a triangle, with the three points being the operator, the dealer and the manufacturer. While there are times when operators work directly with manufacturers, adding dealers to the equation brings benefits to operators.

One of those benefits is depth of knowledge. Things move fast in the foodservice equipment world, with new features and technologies, and even different types of equipment coming on the market constantly. Dealers have the resources and teams to do the research and understand what’s out there, allowing operators to focus on running their business. That knowledge expands beyond the world of equipment, as dealers work together with operators to ease pain points and solve problems. “We work with about 500 national chains, and we’re constantly adding new products to our offerings,” Wasserstrom says. “If one of our customers has an issue, we probably already have a solution in our system.”

Cost savings are another benefit dealers can bring to an operation. “A lot of people focus only on the cost of equipment, but there’s more to think about when looking at the total cost of operations,” says Steve Don, CEO and president of Edward Don & Company, which has seven distribution centers around the country and another opening soon in New England. For example, in a new project, construction delays are often inevitable. Dealers have the resources to store equipment at a nearby warehouse until it’s time for installation, avoiding rental expenses. On the other hand, delays on the equipment side can incur late fees or loss of business. “Having a dealer you rely on, that knows your business, can help avoid those delays and get your project up and running on time,” Don says.

And then there’s the benefit of having dealers out there on the front lines, talking with franchises and operators on a daily basis. Knowing who needs what, managing the purchasing and understanding the manufacturer’s supply chain can help operators avoid downtime. For example, a multiunit operator might have a location that has an older fryer that needs to be replaced in a few months, a new location opening in one month, and another location where the fryer broke down and needs to be replaced immediately. The dealer can prioritize the ordering and scheduling of installation, working to have equipment at each of those locations right when it’s needed to keep operations running smoothly.

Key Components of Strong Partnerships

The bedrock of any strong partnership between a dealer and operator is trust. “Every operation faces their fair share of challenges,” Wasserstrom says. “Our best clients are the ones who understand we’re going to offer what we think is the best solution, even if it might not be the cheapest. We’re going to take care of our customers because every minute we’re not performing, you’re not performing—and we’re only successful when our clients are successful.”

Trust comes in the dealer/operator partnership when both parties understand the relationship is a two-way street, and both work equally at open communication and transparency.

When it comes to communication, it can be as simple as the dealer making time to return calls and emails without delay. But communication responsibilities fall on the operator as well. “Talking with the people who are selling to your franchises helps build a relationship because you have a shared experience,” says the operator at the global restaurant company. “Regular communication on a daily or weekly basis helps keep your team ahead of the game, so when problems arise, as they will, things don’t slip through the cracks.”

As a practice of regular communication, Vassos at Dave’s Hot Chicken sends out a weekly report to all vendor partners, plus holds yearly calls, to make sure everyone is on the same page.

Beyond daily operations, good communication includes information about future plans. “I know it’s important to keep our dealers informed on where we’re going, without exaggerating, so that they’re never surprised,” says Gregg Majewski, CEO and founder of Craveworthy Brands, which oversees seven brands in 24 states. “It’s only by working as a true partner that we will get the most out of our relationship.” Being able to project growth helps dealers get ahead of ordering and improve efficiencies.

Craveworthy Brands, parent company of build-your-own-plate Mediterranean concept Taim, says sharing accurate growth projections helps set expectations with partners.

Sometimes this might mean shifting the mindset for operators to be more open to transparency. “No one wants to share trade secrets, but the earlier you can integrate the dealer into your processes, the better they are able to help,” Don says. Whether an operator is planning to expand to new locations or looking at a menu refresh, good dealer partnerships can bring more successful outcomes.

Embracing the Future

According to Majewski, one of the biggest changes he’s experienced in working with dealers in the past few years is simply the speed at which business gets done. “Thanks to the technology available today, what used to take days or even weeks can be done within hours,” Majewski says. “Whether it’s getting pricing, specs or even figuring out what will fit in different layouts, I can have almost instant gratification.”

The willingness to integrate new technologies and processes within the internal workings of dealers has helped maintain successful partnerships with operators. Now those technologies have expanded to include AI tools. “We’re always looking for ways to improve results for our clients, from better tracking of customer service to the ability to make more data-informed decisions,” says Wasserstrom.

Don agrees that AI will play a role in allowing business operations to be more efficient. “But at the end of the day, people and relationships are what matter. We need to be cognizant of using AI as a tool, and not expecting it to be a silver bullet,” Don says.

Check the Boxes

When looking for a dealer to partner with, consider the following:

☑ Culture. Look for a business that shares your operation’s culture and values. Having a good relationship starts with a foundation of mutual respect.

☑ People. It’s important to have a team that is willing to come into your operation and learn the brand and processes quickly. At Dave’s Hot Chicken, dealers attend classes at the company’s training facilities to see how things work and allow them to be able to suggest new equipment that might be more efficient.

☑ Location. Consider a partner that has warehouses located near your business as well as where you’re potentially expanding. Whether that dealer has a national presence or is more regional might not matter as much as whether they’re close to you, as it can save in the long term on shipping costs.

☑ Services offered. Think about what you need, whether that’s equipment sourcing only or design/build support. You might partner with multiple dealers to receive the full range of services to support your operation.