Tackling the Insufficient Food Supply in the Sufficient Chinese Hot-Pot Chain Restaurant Industry - A Summer Project

Authors

  • Mohan Huo Xi’an Jiaotong-Liverpool University, Suzhou, China
  • Jie Peng Xi’an Jiaotong-Liverpool University, Suzhou, China
  • Ke Wu Xi’an Jiaotong-Liverpool University, Suzhou, China
  • Linxuan Zhang Xi’an Jiaotong-Liverpool University, Suzhou, China
  • Yiao Liu Xi’an Jiaotong-Liverpool University, Suzhou, China

Abstract

Purchasing is widely acknowledged as a critical factor for business survival and success. This study uncovers the traditional purchasing model that affects the cost of vegetables and eventually food quality, based on our summer field research on Chinese hot pot restaurants. Seventeen retail branches were studied, and we propose an innovative procurement model to reduce the total cost of purchasing vegetables. In the new procurement model, vegetables shall be transported from the vegetable base to the central processing plant for cost-down measures by centralized processing and cleaning. Compared to the traditional method, the innovative purchasing approach integrates upstream supplying resources and standardizes vegetable processing, contributing to cost reduction in vegetables and processing. In the research, the group collected data about food sales, prices from suppliers, and related processing to calculate aggregate procurement costs containing vegetables, delivery, and processing costs. The calculation indicates that the new method produces an additional 21,102 Chinese RMB in vegetable and delivery costs. However, it removes the need for a vegetable cleaner in each outlet, which could save more than 70,000 Chinese RMB. Therefore, we verified such an assumption with qualitative interviews with the managers of hot-pot chain restaurants and found that the actual saving can be around 53,356 Chinese RMB. In addition, the standardization and quality control of dishes and fuller utilization of staff have been overlooked in prior daily operation management. Finally, the proposed new procurement model can also be applied to global hot pot restaurants. 

Key words: purchasing, procurement model,  saving

Author Biographies

Mohan Huo, Xi’an Jiaotong-Liverpool University, Suzhou, China

Mohan Huo is a junior at Xi’an Jiaotong-Liverpool University, majoring in Supply Chain Management. She is interested in the procurement and logistics area of the supply chain, and she has two internships at Bosch and Nike. Her email address is mohan.huo@outlook.com.

Jie Peng, Xi’an Jiaotong-Liverpool University, Suzhou, China

Jie Peng is a junior, majoring in Supply Chain Management at Xi’an Jiaotong-Liverpool University. She is interested in supply chain finance. She participated in the 7th GIC Conference with a group project, aiming to shorten the food supply chain. Her email address is jiepeng773@gmail.com.

Ke Wu, Xi’an Jiaotong-Liverpool University, Suzhou, China

Ke Wu is a junior at Xi’an Jiaotong-Liverpool University, majoring in Supply Chain Management. She is interested in the procurement and logistics area of the supply chain. Her email address is 13020100118@163.com.

Linxuan Zhang, Xi’an Jiaotong-Liverpool University, Suzhou, China

Linxuan Zhang is a student of Intelligent Supply Chain at Xi’an Jiaotong Liverpool University. She has researched supply chain technologies, logistics, and procurement. She participated in the 7th GIC Conference to demonstrate a group project which is related to the food supply chain. Her email address is zlx124509@gmail.com.

Yiao Liu, Xi’an Jiaotong-Liverpool University, Suzhou, China

Yiao Liu is a junior at Xi’an Jiaotong-Liverpool University, majoring in Supply Chain Management. He is interested in supply chain lean management and logistics management. His email address is Yiao.liu@outlook.com.

Published

2022-12-13

Issue

Vol. 10 No. 2 (2022): Proceedings of the 7th Global Issues Conference

Section

Global Issues Conference Proceedings

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