A message from our Sales Director:
As a Restauranteur, this was one of my favourite times of year – planning summer menus, and of course having to taste the fabulous dishes coming from my Kitchens (tough job, but somebody had to do it). In 2018, however, our hospitality clients are painting a picture of uncertainty for the summer months ahead, specifically in relation to spiralling food costs.
Food prices are continuing to rise faster than our customer’s incomes, with the cost of eating out in restaurants and pubs having increased by 7% over the past year.
We are blessed with wonderful summer produce in the UK, but the demand for this produce combined with volatile weather affecting harvests has seen the price of seafood rise by 4.9%, vegetables by 5.4%, meat is up 5.2% and fruit has risen 10.2% in the past 12 months. This price creep has a devasting effect on margins for operators which has resulted in many closures in 2018 with more predicted unless we take control back.
How live price control e-procurement can help
We can’t control the weather or the demand from overseas emerging markets, so what is the answer for Independent operators and groups alike? Well, the answer is much simpler than you might think. Many Hospitality operations are seeing this perfect storm as an opportunity to grow their business by adopting live price control e-procurement solutions, specific to the hospitality sector.
Our clients are growing their businesses right now – live supplier price control means that they have visibility of today’s prices and can accept or reject price increase requests in accordance with a Service Level Agreement. It’s free for suppliers to trade in real time with their clients which enables both parties to resolve disputes in real time and remove laborious error adjustments at month end. So win-win for buyer and supplier.
Our clients are looking forward to planning their menus and delivering forecasted GP this summer. Are you?