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Why are prices increasing?
Many price increases can be traced back to higher costs for oil, natural gas and fertilisers. These costs affect the entire supply chain, from agriculture and production to transportation, packaging and distribution.
Geopolitical tensions and extreme weather conditions are also creating uncertainty and volatility across global markets.
For hospitality businesses, this means some products are becoming more expensive, while others remain relatively stable. That is why having insight into market developments is more important than ever.
Which products are under pressure?
Animal proteins such as beef, fish and poultry are among the categories experiencing the strongest price increases. Prices for these products are expected to rise by between 4% and 12%.
At the same time, the prices of commodities such as wheat, corn, soybeans and vegetable oils are also increasing. As these ingredients are used in a wide range of food products, the impact may eventually be felt across the hospitality sector.
Additional benefits
When prices rise, a strong purchasing strategy becomes even more important. Hospitality entrepreneurs who plan ahead and actively manage their purchasing can often absorb cost increases more effectively.
This can include:
- Reviewing product categories that are at greater risk of price increases
- Comparing alternative suppliers and products
- Maintaining flexibility within menus and product ranges
- Planning purchasing and ordering moments strategically
- Taking price developments into account when preparing quotations and contracts
There are also opportunities to save on fixed cost categories. Coffee is a good example. With our own coffee brand, Capra Nera, Procent offers high-quality coffee at competitive rates. This helps reduce purchasing costs without compromising on quality.
Savings start with the right partner
In a market that is constantly changing, keeping track of developments, comparing suppliers and negotiating contracts takes time and money.
As a one-stop shop for the hospitality industry, Procent helps hospitality entrepreneurs purchase more efficiently. By combining the purchasing power of more than 13,000 hospitality businesses, we create scale advantages that directly benefit our members. From competitive rates and improved terms to time savings and personal support, we take the work off your hands so you can focus on your guests.
Curious how much you could save on your purchasing costs? Get in touch with Procent and discover where the biggest opportunities lie for your business.
