A vendor agreement is a contract between a hospitality business and a supplier that outlines the terms of their business. This document will include product or service specifications, pricing, delivery schedules, payment terms and quality standards. It will also cover responsibilities, liabilities and dispute resolution.
Vendor agreements are important in hospitality because they ensure quality and supply. Hotels, restaurants and bars can then offer their guests a consistent experience. They also protect both parties by defining expectations and responsibilities so there's no misunderstandings and conflicts.
Let's say you're a restaurant manager sourcing fresh produce for your kitchen. You create a vendor agreement with a local farm to supply organic vegetables. The agreement will specify the types and quantities of vegetables needed each week, delivery times, pricing and quality standards. If the farm doesn't deliver the agreed produce or the quality doesn't meet your standards, you can refer to the vendor agreement to resolve the issue. Then your kitchen will always have the ingredients to serve your customers and maintain the quality and consistency of your menu.