18 April 2023
When it comes to running a foodservice business, one of the biggest challenges operators will face is reducing food costs. With what feels like constantly rising food prices, it can be a real challenge to keep your prices competitive and your profit margins high.
But did you know there are ways to mitigate these food costs and keep your business running smoothly?
Swapping out more expensive proteins for cost-efficient options is a great way to save money. Last October, for example, there was a shortage of frozen cod due to the conflict in Ukraine, so we advised our clients to move from frozen cod to frozen haddock, which had a more competitive price and saved our clients 20% on price.
By making these small changes – through our relevant industry-leading insight – you can always make the most informed decisions. And when you’re backed by our award-winning procurement framework and annual sourcing calendar, you can go to the market, at the optimum time, and get locked-in prices to safeguard you from future inflation.
Another way to mitigate costs is by building strong supplier relationships. At Foodbuy, we work with over 2,000 suppliers and 30 wholesalers, and by working closely with them, you can build and maintain healthy relationships, so you can be confident in not only the quality and consistency of your products but that you’re getting the best deals possible.
High levels of reporting also help maintain complete transparency. Utilising product, sales and performance reports alongside our market insight and trends reports, you can be sure that you’re getting the best ingredients for your customers, at the best price, to justify the prices you pay and consequently charge.
Of course, it’s also essential to have the right mix of products for your business, at the right price. And when it comes to this, having a partner that has the experience and network of connections in the food industry will enable this.
With Foodbuy, because of our scale and supply chain expertise, you’ll have access to deals and discounts that you wouldn’t be able to access on a smaller scale. This allows you to streamline your inventory, reduce food waste and lower your costs long-term.
And speaking of lower costs, Foodbuy makes inflation work for you. By working with chefs and culinary teams – and by staying close to market movements – Foodbuy can help you respond to rising ingredient costs and shortages to find ways to maintain costs, while still providing high-quality products through unrivalled recipe support.
For example, the standard pig price has increased by 53% since January 2022. This is an unprecedented rise, down to the cost of the production versus the actual sales price of the pig and a reduction in pig herd (a decline of 6.1% since October last year). Whilst pork remains the cheapest meat within the wider subcategories, we’d recommend switching or reducing bacon on breakfast menus and possibly optimising more vegetable-based alternatives.
At Foodbuy, we have unparalleled resources and information at our fingertips to help you safeguard against inflation and, where possible, make swift switches that maintain product quality standards so you can always offer your customers the best products, even in challenging times.