"Worst Mistake" This Restauranteur Ever Made

Bonnell’s Fine Texas Cuisine is an outstanding local restaurant in Fort Worth TX that focuses on local food and wild game. Chef Jon Bonnell is highly rated and is written up in many publications.

One article posted on the restaurant wall listed this tidbit:

Worst business decision

“Too many times, I’ve gone with the lowest bidder.”

It seems that the chef has learned, on his own, a lesson that Dr. Deming used to preach all the time: don’t choose a supplier based on price alone. It’s often true that you get what you pay for and the cheapest might provide such poor quality that it harms your business or ends up raising overall costs.

Let’s say that you buy cheap produce, but the quality is so poor that you have to spend time sorting the produce (taking up time and increasing costs) and throwing away half of it — this increases the effective “cost per good strawberry” for example.

It’s better to consider value and quality — not just the unit cost of an item, whether you’re buying food ingredients for a restaurant, hiring subcontactors for a business, or purchasing airplane components.

Is this a lesson you’ve learned the hard way in your own business or in your personal life?

Subscribe via RSS | Lean Blog Main Page | Podcast | Twitter @MarkGraban

Please check out my main blog page at www.leanblog.org

The RSS feed content you are reading is copyrighted by the author, Mark Graban.

, , , on the author’s copyright.

Please post a comment and join the discussion. Subscribe to get notified about posts daily or weekly.

Related Posts Plugin for WordPress, Blogger...

Mark Graban's passion is creating a better, safer, more cost effective healthcare system for patients and better workplaces for all. Mark is a consultant, author, and speaker in the "Lean healthcare" methodology. He is author of the Shingo Award-winning books Lean Hospitals and Healthcare Kaizen, as well as The Executive Guide to Healthcare Kaizen. His most recent project is an book titled Practicing Lean that benefits the Louise H. Batz Patient Safety Foundation, where Mark is a board member. Mark is also the VP of Improvement & Innovation Services for the technology company KaiNexus.

1 Comment

  1. Mike says

    Mark;
    Couldn’t agree more! Quick story…I’m in the process of getting a new van adapted with a 10inch lowered floor, ramp and adaptive driving controls. The Office of Rehab. needs to do 3 bids. Funny thing is that one of the best vendors is less than 30 miles away, yet, I might get stuck traveling further to get inferior quality. In schools, we use lowest “responsible” bidder, but many times, that low price is tempting to school boards. Deming was indeed very insightful!

Leave A Reply

Your email address will not be published.