2. Hospitality Services Group COOPERATIVE PURCHASING SINCE 1989

3. What Is HSG? Since 1989, HSG has been one of the most successful cooperative purchasing groups in the United States. HSG provides a means for independent restaurants, inns, hotels, retirement communities, schools and other food service operators to work together to reduce the costs of the goods that they purchase. We leverage the combined needs of our member clients to purchase food and non-food supplies, except alcoholic beverages, in the most efficient and cost effective manner possible.

4. Why Members Use HSG One dollar saved in purchasing goes right to your bottom line. All of our members have reduced their food cost. Larger clients have been able to reduce or eliminate their in-house purchasing staff. Operations have gained the professional expertise that they could not previously cost justify. Chefs rely on us to research product needs. HSG stays abreast of products new to the market and arranges presentations. Owners rely on HSG to insure consistency of quality and price. Accountants like HSG’s “paper trail” for all purchases.

5. Problems Participation Can Solve Overpaying for products and services The need for an in-house person with purchasing expertise Choosing the right products or ingredients for your needs Keeping up with new products and trends Successfully competing against chain operations Control Issues Time wasted with sales representatives

6. Who Can Benefit Restaurants Inns & Hotels Country Clubs Nursing Homes & Retirement Facilities Schools & Camps Small Food Manufacturers and Processors Any other commercial or institutional user of large quantities of food and supplies.

7. Benefits You Can Expect Financial Savings –Lower Product Costs National Contracts Larger Buying Power Access to Additional Suppliers –Lower Labor Costs Eliminates need for in-house purchaser. Eliminates Time spent gathering and comparing Prices Fewer Phone Calls Reduced Time spent with Sales Reps. Less time spent researching new items One dollar saved in purchasing can be worth three or more dollars in additional revenue.

8. Tighter Controls –Written Purchase Orders for all transactions –Separation of Ordering and Receiving Responsibilities. –Eliminates the “My friend takes good care of me” relationships Improved Product Selection & Knowledge –You decide what products will be used, not your sales rep. –Our members are the first to hear about new products. –HSG sees a broad spectrum of products and keeps you informed Professionalism –Purchasing systems and buying for restaurants is our only business. We devote 100% of our time to providing the best service and achieving the lowest possible prices for our clients. –We are one of the oldest and most successful buying cooperatives in the US. Since 1989.

9. How HSG Will Save You Money Combined Purchasing Power of Our Clients. Contracts with many national manufacturers and packers Use of comprehensive product specifications. Two or more sources for each product whenever possible. Huge computerized database of prices and specs Pay attention to the details. Continually evaluating products and prices. Professional and ethical purchasing practices.

10. How HSG Will Save You Time HSG eliminates the need to spend hours on the phone dealing with sales people and placing orders. HSG does the legwork for new products, researching, screening, and presenting to you only those products that meet your specific requirements. With HSG you get the time savings of one- stop shopping.

11. What HSG Will Do For You: Step By Step Develop Detailed Specifications –First, we will work hand-in-hand with you and your chef or manager to set up detailed specifications for each product needed. Together we look at use, quality, pack, volume, present source of supply and unique requirements that might affect the purchasing decision. You will make all final decisions on the specifications that are right for your operation. Creation of Custom Order Forms & Systems –HSG creates a custom set of forms for your use, which are tailored to inventory systems and ordering procedures already used by your business. Add You to Our Combined Purchasing Power –HSG combines the needs of all its clients for bidding purposes. We use the cumulative buying power of all of our members to negotiate the best possible prices. There is strength in numbers. Locating Multiple Sources –Using multiple sources of supply for each item assures a competitive bidding process. We maintain a fully computerized database of product information and prices which is continually updated.

12. You Retain All Product Decisions –You continue to determine your order using the simple forms we provide, and send the order to HSG by fax or email. We then price out every order (considering only vendors that you have approved) using our computerized information, Products are Orded from the Best Supplier –We match the best supplier with each item, and place the order. Efficient Communications –Only after each vendor has confirmed receipt of your order and checked their stock do we fax a copy of the purchase orders to you. You will know exactly when suppliers are due to deliver, what they will bring and how much you will be paying. All orders are delivered and invoiced directly to you by the suppliers. We handle the problems –HSG works very closely with our clients to insure complete and accurate purchasing. However, if a problem or an emergency occurs (no matter which party is responsible) HSG will follow-through to correct the situation and get you the product you need when you need it.

13. Terms and Pricing Our Terms –Letter of Agreement rather than a contract. –We work with you and become an extension of your management team. –You can leave the group at any time. Pricing –Set fee for all work done prior to start-up Product Review Product Specification Development Order Forms Vendor Review and Selection Product Research and Sampling –Flat monthly fee. –Positive Cash Flow.

14. What We Need From You to Get Started A desire to save money and improve your purchasing program. A commitment to work with us as an extension of your management team A list of all of the items that you currently purchase or copies of your last months invoices.