To wonder why Booker is so much MORE expensive than Tesco / Asda

[AvocadosBeforeMortgages]

I went to Booker (wholesaler) today for the first time as I'm doing a bit of catering for family events. But most of it was more expensive than Tesco (the parent company of Booker) and Asda even for basic items. For instance

Lemon juice per litre
Tesco £2.20
Asda £1.56
Booker £3.29

Icing sugar per kg
Tesco £1.70
Asda £1.50
Booker £1.76

Fresh double cream per litre
Tesco £3.30
Asda £3.33
Booker £4.29

In all of the above cases the Booker packs were larger than the supermarkets. The Booker shop was a grubby warehouse with more leaks in the ceiling than members of staff. It can't be buying power as it's owned by Tesco. Free delivery only on orders over £100.

I can't work out why they're so much more expensive than normal supermarkets (and why caterers don't just get deliveries from the supermarket not Booker).

AIBU to be a bit confused?

I have never been but presuming they do bulk packs I would say it’s because some catering bosses (specifically the smaller owners imo) don’t actually check that per kilo/litre they’re better off than going to Asda or whatever, they just see the pack size and go “Oooh, bargain!” I’ve known many such managers (I consult in this area and have worked as a catering manager on a contracting basis.)

If you are catering on a large scale you are buying stuff there because you want 5k of flour or 2kg tubs of ketchup or 80 bread rolls. And the mark up on food is often very high so you are still making a profit.

Stuff like cans of drink etc there is often 100% mark up, fast food like burgers, hot dogs, fish and chips often 150% + mark up.

But I agree they aren't the nicest places to shop! My mum had a cafe for years and would often be sent to get stuff.

Although alcohol is surprisingly reasonable. Especially if you look out for special offers.

I love a trip to Booker. It’s great for some stuff but I’ll agree that not everything is cheaper.

Crikey @AngrySquid no wonder so many small restaurants don't last if owners can't even do that basic bit of cost control

I would still turn a profit if I was buying at Booker, but I turn more profit buying at Asda (and they do faster delivery, 'free' over £40 spend with a delivery pass). I even checked the price of diet coke cans as I drink that myself at home and even that was cheaper at Asda

I can't understand why Booker are so much more expensive. I could understand if they were the same price per kg as tbh sometimes bigger packs are more convenient but there's no way I can justify going there and spending more

Time and space. Both of which are probably limited somewhat for business owners. Thinking of cream and lemon juice, to have each in 1000ml bottles compared to 10x100ml bottles probably takes a lot more space. Espically if multiplied over a number of products.

Then the time to either do online orders or go to multiple shops plus milage/fuel. Doesn't always make it cost effective.

You aren't always allowed/able to buy in large quantities at supermarkets.

Things like mushy peas come in tiny tins and often run out in supermarkets. When you are catering for bonfire night, you don't want to be opening 80+ small tins of peas. I know this for a fact.

Also they will have discounts on account spending.
So if they spend £xxx they will get ex £x back

(I think)

From speaking to a friend, Tesco and Asda online shopping do not deliver to properties with an alcohol licence (even when not ordering alcohol) so that obviously covers a lot or restaurants and pubs, so if you’d prefer online shopping (our nearest Tesco/Asda is a 50 minute round trip excluding shopping time) for your flour/sugar etc in larger quantities, and booker deliver, that might be cheaper than Morrison’s/Sainsbury’s or whoever else do deliver to licensed properties.

I use Booker for charity events and some things (alcohol, sweets, some soft drinks, Cleaning products) are loads cheaper, I wouldn't know about the items you've listed as I've never had cause to buy.

I agree the customer service is dire

Also, things like cans of fizzy drink - supermarket multipacks are cheaper per can BUT you can't legally split the pack and sell individually. I do like booker especially for the glass bottle coke and the spirits are often cheaper than supermarkets.

I disagree about customer service. We had a village shop and used Booker. Without exception the young staff were just lovely. (The woman on reception was something else though!)

We have a costco card and it's always a disappointment when we go!

Ever tried to order in bulk from supermarkets???

Also your equation doesn't take in to account travel/convenience.

Opening 9 tins of baked beans for a hotel/b&b breakfast vs opening one puting it in a massive pot and on the stove cooking it and keeping it over a low heat and just serving it out as time comes, the later is more time and cost efficant.

Also the cost difference is miniamal - in icing sugers case literally pence, compared to employing some one for an extra hour (ok an hours a bit of an exagration but the point is it takes more time than opening one can) to open 9 different cans at minuim wage £8.00 an hour while your competor down the road has gone to booker brought one can thats taken the employee 2 seconds to open for 6p more you do see how 6p is less than £8 don't you.

Or theres the cost of your salary while your sitting in an office going round various supermarket sites trying to buy the number of litres/kg you need and the websites either informing you they've sold out or your simply nt allowed to buy that number of that thing. Compared to going to one shop where you lliterally pick up any number box/pallets at cost price, taken you a couple to do something that would take twice as long on line/rinning to the actual supermarkets. Again you do see how £1 is less expence than whatever a cafe owner is on don't you? (Which wont be minuim wage)

Sometimes the efficancy isnt in the pure comparison of the product but the relative time/staffing cost involved

I am Chair of a PTA and we've found that for events Iceland / Tesco are almost always cheaper than Bookers (mostly due to deals, eg 3 for 2 on Easter Eggs at Tesco).

However we only buy small(ish) amounts for specific events so any wastage eats into our fundraising so any cost benefit of buying everyday items in bulk will naturally be lost. Were we buying a dozen bottles of ketchup then I have no doubt Bookers etc would end up cheaper.

It does always make me realise, though, how tight the margins must be for smaller corner shops compared to the might of supermarkets and why they are often more expensive.

The price on the shelf isn't what everyone pays lots of customers that buy regularly have there own price lists organised by the store managers. Customers also get different rebates. It works out very expensive if your not a regular customer.

You can also order online and they deliver for you every week at the same time

I'm always surprised when I see the Asda truck outside nursery. I'd always assume they'd use wholesalers.

If day that it's because you can claim back the VAT too. ( if you're registered).

• I'd say (ffs).

You can claim back 20% if you're VAT registered

Most food doesn't have VAT on it anyway and you'd still be able to claim VAT back if you bought in supermarkets because they still give you a VAT receipt.

It's the access to bulk quantities reliably, single items that you can legally sell, plus possible 'account' discounts that will why people use them, plus time efficiency and it won't be hard for commercial operations to spend way more than £100 so the free delivery limit won't be an issue.

But some small shops and cafes probably will buy some things in supermarkets, but they do sometimes put limits on things, especially when on special offer, to avoid other retailers clearing them out.

But it must be frustrating for small shops trying to compete when they can't even get their stock at supermarket prices and then obviously they have to try and sell it at profit to make a living.

Booker is a Tesco subsidiary

[[https://en.wikipedia.org/wiki/Booker_Group]]

In May 2015, Booker Group confirmed it had reached an agreement with Musgrave Group to buy the Budgens and Londis grocery chains, for £40 million.[23] In January 2017, Tesco announced that it had reached an agreement to merge with Booker Group for £3.7 billion, subject to shareholder and regulatory approval.[24] It was confirmed on 5 March 2018 that Tesco had completed its merger with Booker. [25]