The Covid-19 pandemic has caused unprecedented supply chain disruption, with the Hospitality Industry and Foodservice sector still being heavily impacted on many levels.
Food Cost Inflation
The recent Consumer Price Index (CPI) showed inflation running at 5.4%, indicating that the economic pressures on the UK do not look to be easing off any time soon. In particular, food commodities have seen further unexpected inflation and many food categories are forecast to rise in the coming months.
To mitigate the impact of price inflation, we join our clients in reviewing menus to identify products affected by a price increase then discuss with suppliers to find the best product alternatives.
Suppliers struggling with labour shortages
As a result of Covid-19 and Brexit, the UK transport industry is facing a shortage of over 100,000 lorry drivers. While a series of measures such as recruitment campaigns, government funding for training, and a rise in wages are being undertaken, the impact of driver shortage is likely to remain in the coming months. The supply chain industry also suffers from an extensive staff shortage as the sector is struggling to attract and retain workers.
In order to help navigate the operational challenges suppliers are facing, we recommend our clients anticipate their orders and reduce the frequency of deliveries where possible. Local and seasonal product that do not require air and/or sea transport are often a good alternative, these also have a greater impact on carbon footprint.
Solutions for your kitchen
Pubs, restaurants and hotels are also facing a staff shortage crisis, with a need for 200,000 additional workers and vacancies open in every business. Ready-to-use products are a simple and effective way for restaurant managers and operators to cut down on labour and ingredients without hindering guest experience. For instance, managers can purchase pre-cut produce, or items like RTU muffins, desserts, sauces and soups that can be served as is — without additional prep. By using RTU products, operators minimise preparation steps and increase their resistance to ingredient-based shortages. RTU products generally incur a cost increase compared to buying raw ingredients, nonetheless this usually more than offsets the increased payroll to prep in-house. Our supplier partners have plenty of product solutions, get in touch with the Entegra team to see how we can help.
Here are a few product recommendations:
Beef Featherblade
Baby Hasselback Potatoes
Mushroom & Mixed lentil Bolognaise
Ruby Chocolate Cheesecake
Entegra's services beyond purchasing
Our Operations team continually identify opportunities to not only minimise the impact of increasing food inflation, but in many cases neutralise this impact and deliver further savings.
By applying our technical expertise, we work alongside our clients' culinary teams to review purchasing and menus, tariffs, operational ways of working, and product innovation, whilst offering a large and comprehensive supply chain.
February 23, 2022