European restaurant chain, price increase due currency changes and cost optimization of Mexican ingredients

The CEO of a European restaurant chain in a country not Euro-member, but part of the EU, contacted us for advise related to sourcing Mexican ingredients (1 metric ton every three months). They needed to reduce the cost of purchasing Mexican products because prices from their current European provider increased 20% due changes in the currency exchange rate in the previous year.

We made a currency comparison around the world of different countries to find out the place that could source Mexican ingredients at the lowest price at this point of time. Then, we contacted our provider/producer in that country to negotiate prices, delivery times, and transport cost. Additionally, we asked for a quote from factories and producers in Mexico, so in case the exchange rate continued increasing prices in the country of our customer, then we could get the best price of the market and within certain time limits.

As a result our customer achieved a restaurant cost optimization, maintained and reduced cost of importing Mexican ingredients by changing provider and identifying the one that provided the most appropriate price and best quality despite the currency exchange rate difference.

Advisory time: 3 hr