Most commentators agree that the rising cost of ingredients will remain one of the biggest challenges facing food service operators in 2019. The devaluation of the pound has made ingredients more expensive with some operators seeing 11% food inflation and even higher figures for produce impacted by the bad winter and extremely hot summer. The uncertainty around Brexit continues and there is a possibility prices could rise even further depending on the nature of the deal, or indeed ‘no deal’, that may eventually be struck.
There’s four key categories particularly sensitive to these external conditions with a potential rise in dairy products by around 8% according to BRC Global Standards. Prices of French, Italian and Spanish cheeses have already increased and even the UK stalwart, cheddar is under threat – with about a third of the UKs cheddar (70,000 tonnes) being imported from the Republic of Ireland.
Last year’s weather conditions, with a hard winter and very hot summer, has put pressure on costs for meat and poultry producers. Feedstocks that were traditionally only used in the winter had to be used in the summer, making the overall cost of producing meat and poultry more expensive. The BRC estimate the price of beef could rise by anywhere between 5% and 29%, and poultry prices could rise by as much as 25% according to the British Poultry Council.
Fruit and veg prices could also be compromised. A variety of sources point toward a 4% increase.
Fish does not remain unscathed with a predicted 18% rise in prices due to tariffs imposed on fish imports.
You can get the full details behind these insights – simply email Richard Acey – firstname.lastname@example.org – and ask for the latest edition of our Quarterly Insight Report.
What does this mean for foodservice operators?
Many operators are getting more creative with their menu engineering to retain the integrity of their dishes, whilst still delivering an experience that keeps customers coming back for more. We believe that creativity and innovation should not just be confined to the menu and plate, but throughout the supply chain. This is exactly where Foodbuy comes in!
No matter how large your current food spend, by partnering with Foodbuy you can increase your economies of scale without risk. With our £1bn of managed spend, we bring together the widest range of foodservice and hospitality clients to buy food, and everything associated with it. We believe that by working creatively together we can tackle the issue of rising ingredient costs.
You will find us easy to work with. No one doubts we are working through extraordinary times but it’s simple to make the first step to discover the opportunity Foodbuy represents; contact us here.