With the threat of additional tariffs, geopolitical events and severe weather, hospitality and foodservice-driven businesses like restaurants, lodging, senior living communities and golf resorts need to implement proactive strategies to keep supplies flowing.

 Consider this: There has been a 38% increase in supply chain disruptions since 2024, with supply challenges rising fastest for the general manufacturing and healthcare industries* Meanwhile, consumers are seeing a 2.9 percent increase in consumer prices for all food in 2025. Food-away-from-home prices are predicted to increase 3.9 percent.** And climate disasters from droughts to fires to floods continue to adversely impact crops worldwide. 

Operator costs are increasing while consumers are feeling the pinch at the point of sale. Let’s break down some strategies you can implement to make your business more resilient. Go deeper in the report: Smarter procurement for uncertain times. 
 

Mitigation strategies for F&B procurement
 

Risk #1: Not getting the best contracted price on F&B and supplies

Strategy:

Control spending on F&B and supplies by making sure you're getting the best prices from suppliers. Oftentimes, because of their size, many companies do not have the leverage with major suppliers to negotiate the best pricing or terms. And, when product supply is squeezed due to shortages or import issues, businesses need to be able to quickly pivot without paying more for what they need.

Without a relationship with a centralizing force like a group purchasing organization (GPO), companies should expect to spend more time on sourcing suppliers negotiating contracts and reconciling deliveries and all contract terms.

• Explore joining a GPO.
• Consolidate purchases with preferred suppliers to leverage buying power.
• Consider making product swaps from imported items to domestic cheeses, fish, wine and olive oil.

Risk #2: Over-buying supplies, food waste and your menu

Strategy:

Commodity pricing has risen across the board, increasing your costs for staples like bread and bakery items, meats and cheeses and eggs. By not using everything you buy, or holding on to underperforming menu items, your dollars are likely being wasted. Ideas to consider include:

• Focus on high-margin items and eliminate or reprice low-margin dishes.
• Use ingredient cross-utilization to reduce waste and inventory complexity.
• Analyze performance using a menu matrix (popularity vs profitability)
• Explore solutions from Entegra Culinary Consulting

Risk #3: Outdated or inefficient eProcurement and digital solutions

Strategy:

The most efficient and streamlining businesses rely on powerful technology platforms to get deep insights into their purchasing data, especially when there are multiple units needing to place F&B and supply orders.

While this is a risk, there's also an opportunity. Make operational improvements that can lead to savings and growth. By investing in eProcurement tools, you can:

• Save on costs throughout your organization from eliminating manual processes and wasteful spending to identifying lower prices on goods and services.
• Automate tasks, shorten the procurement cycle and work more collaboratively with your finance, procurement and other teams and suppliers.
• Scale to meet your growing business, manage spend at the SKU and unit level, and ensure compliant, GPO-contracted purchasing.

Hear from Entegra’s SVP of Supply Management, Dave Kourie, on managing procurement during uncertain times. 

The strategies above can help you adjust and become more resilient in challenging times; for a fuller playbook of ideas, download our free guide: Smarter procurement in uncertain times. 

Interested in having Entegra’s supply chain experts tailor a strategic procurement approach for your business? Contact us. 

_{^{* https://resilinc.ai/blog/resilinc-reveals-the-top-5-supply-chain-disruptions-of-2024/ 
** https://www.ers.usda.gov/data-products/food-price-outlook/summary-findings}}