Help with Research for Post Grad Unit - Procurement Strategies - Cafe/Restaurant Related


Currently doing a post grad unit relating to procurement strategies. I'm hoping to see if there are any kind souls here who can help with some research information I need to complete an assessment.

I need to do a profile spend for a hypothetical eco cafe setup serving Australian organic food near the Surf Coast of Victoria. I already have the population and tourism statistics, as well as market profile reports.

I'm currently stuck in determining the volume of inventory that we would need for such setup. How do you determine how much food/coffee/etc. the cafe will sell when you first start up, so you don't over/under order and can negotiate pricing with suppliers?

Really appreciate your inputs and any other information that would assist me with my assessment.

Thanks in advance!


  • This could help - but some info is locked behind a paywall.

    • Yes agreed. I’ve got the market profile report already which is very helpful in determining market share.

  • Isn't the whole idea of the study/assessment that you go do the research and/or make an estimate based on some evidence?

    Surely your answer can't be 'ozb when asked where or how did you come that figure.

    • My post here forms part of my many research on this. Was hoping I can reach out to a different group of people here.

      I’m not expecting to get a figure from Ozb. I’m after some feedback from people with real life experience with this so I can provide my own figures with assumptions based on my research - information obtain here and elsewhere.

      Don’t think it’s nice to assume/judge what people are trying to do based on their posts here.

  • How do you determine how much food/coffee/etc. the cafe will sell when you first start up

    The quantity of stock to order will generally depend on a number of factors:
    - Estimated stock consumed by customers each day. This should tell you how much stock that needs to be ordered on a regular basis.
    - Customer numbers in turn depend on hours / days opened, location of cafe, season, menu and pricing. If there are other cafes nearby, you could actually do a field study to estimate numbers.
    - How often to restock, eg, weekly, fortnightly or monthly.
    - How easy it is to restock, eg, if supplier can deliver next day then risk of understocking is lower.
    - How perishable the items are, eg, some items stay fresh for several weeks / months so risk of item going bad due to overstocking is lower.
    - You may wish to reassess ordering requirements on a daily or weekly basis. Patterns should emerge after several days / weeks providing further indicators of minimum stock levels required. Items showing regular high demand can then be ordered in bulk / negotiate pricing.
    - Some items can be sold on a consignment basis to reduce risk of overstocking.
    - Suppliers sometimes provide samples to allow you to gauge customer interest.