La Boulangerie Bakery: Contract Amendment and Cost Revision

This assignment is a business communication exercise presenting a contract amendment letter from La Boulangerie Bakery to Café Broussard. The letter, dated March 4, 2019, addresses changes to their wholesale contract due to rising production costs, specifically focusing on the impact of increased prices of wheat, sugar, and fuel. La Boulangerie informs Café Broussard of a $20 delivery charge for certain items and offers a 5% discount on bulk orders of 200 units or more. The letter also introduces new product lines, including festive hampers and handmade chocolates, while assuring continued quality. The amendment aims to manage costs while maintaining the quality of products. This assignment demonstrates how to communicate price adjustments and new policies to a client in a professional and transparent manner.

La Boulangerie Bakery
Mr. Emil Broussard,
Café Broussard, 2013 West Lee Drive,
Baton Rouge, LA 70820.
Date: 04 March 2019
Subject: Regarding amendments in the contract.
Dear Mr. Emil Broussard:
We are pleased to have been in the business relationship with Café Broussard that is one of
the renowned restaurants of the city since last 7 years. Together we have overcome numerous
hurdles and challenges in order to provide the best delicacies to the customers, thereby
establishing a coveted business relationship in the event of the cutthroat competition. We
hope you are equally pleased with the business relationship as we have not raised the prices
over these years or compromised with the quality of the products in all these years despite the
continuous challenges posed by the external and internal factors.
You must be aware of the recent amendment in the US Food Regulation Laws resulting in the
significant increase in the prices of wheat and sugar that account for the prime ingredients of
our products. Further, the consistent inflation in the market has recently led to a drastic rise in
the prices of gas as well, adding to the cost crisis for the bakers across the region. Thus, our
bakery to has been consistently facing the challenge of devising the means to keep the
production costs in check. However, the recent sudden rise in the fuel prices have increased
our transportation overheads substantially and lately, we are unable to keep the production
costs stable because of the same.
Owing to the above, the management of our bakery recently conducted a cost review exercise
for all the products offered. Accordingly, we have decided to amend a part of our wholesale
contract of products namely the cupcakes, cookies, cakes croissants and breads. Following
the rise in the production costs and in order to curb the same, a nominal $20 charge per
delivery would be levied on all the fresh orders booked after 8 March 2019 on the above-
mentioned items. However, it must be noted that there is no change in the basic prices of the
products and the same are kept likewise. We would also like to inform you that in the cost
revision strategy we have decided to provide an additional trade discount of 5 percent on bulk
orders of 200 units or above.
In addition, we are pleased to let you know that we are introducing a new range of innovative
festive hampers and handmade assorted chocolates, which would be available on our stores
from 8 March itself. As you are well aware that we have never compromised the quality of
our products, we assure you the same for the future as well and promise to provide excellent
quality products as ever, including in the new range of products as well. Looking forward to
your cooperation in the process and hope to continue this business relationship for the many
more upcoming years.
Thanking You.
Yours Sincerely,
Riley John
Manager Operations
(For La Boulangerie Bakery)