Twenty years ago, independent restaurants that sourced their goods from large distributors (think Sysco and US Foods) didn’t have much clout when it came to cost savings. As prices for products fluctuated, restaurants had two choices: find savings elsewhere, or use a different vendor altogether.
John Davie had a better idea. Bringing together several restaurants in and around Rochester, New York, he created a group purchasing organization (GPO) that would negotiate lower prices by consolidating buying power. The restaurants got better deals, manufacturers got more business and Davie’s company—Dining Alliance—flourished.