How are food and product costs negotiated for the existing affiliate-owned Buona restaurants?

According to Buona's 2025 Franchise Disclosure Document, food and product costs for the existing affiliate-owned restaurants are negotiated by Buona's affiliates with manufacturers and distributors on a consolidated basis. This means the affiliate-owned restaurants benefit from volume costs because all of the units are located within one region.

For a new Buona franchisee, especially one establishing a unit in a new market without existing brand recognition, this could present a challenge. The FDD notes that new franchisees in new markets may not have the volume to negotiate favorable prices with manufacturers and distributors serving their region. This could result in higher costs for food and products compared to the affiliate-owned restaurants.

Prospective franchisees should consider this difference in negotiating power when projecting their potential costs and profitability. It's important to research and understand the local market's supplier landscape and potential pricing before committing to a franchise agreement. Speaking with existing franchisees in different markets could provide valuable insights into how they manage food and product costs.

Ultimately, the ability to effectively manage these costs will be crucial for the financial success of a franchised Buona restaurant. While the affiliate-owned restaurants benefit from established relationships and volume discounts, franchisees will need to develop their own strategies to secure competitive pricing in their respective markets.