Q&A with Entegra Global CEO Damien Calderini

The price you pay: Commodity pricing and GPO cost-saving strategies

Damien Calderini | Entegra Global CEO

With inflation continuing to pressure many hospitality businesses, understanding commodity pricing can protect your margins. It’s what we do to bring you savings and part of how we prepare you to make the best purchasing decisions.

With the winter 2023 release of the Cost Outlook, which provides a six-month projection of where costs are headed, we spoke with Entegra Global CEO Damien Calderini about some of the trendlines from the report and what they may mean for the hospitality industry.

What conditions impact costs for operators and what do we need to be aware of going forward?

“The world is an uncertain place these days. Some have mentioned the term ‘perma-crisis’ to reflect this sense that there are multiple crises unfolding on what feels like a continuous basis. There are many factors out there that could impact the economy: an expansion of the ongoing wars to other countries (Ukraine-Russia, Israel-Gaza), the election campaigns in the U.S., the impact of climate change and more.

“We’re continuing to monitor inflation and its effect on commodity pricing, especially for beef and dairy currently. With beef, production is down, and we expect inflation to stick around for the next few years. This is going to require reimagining menu planning, starting with your purchasing decisions.

“While we don’t have a crystal ball, the best we can do is to help our clients based on the available information — and beyond that, help them get ready for permanent change. Operators need to be nimble and ready to adjust their strategy.”

How does Entegra use cost forecasting to support its clients and how can any business use the information from the report?

“Continuing with the example of beef prices, we’re focused on bringing alternative products and solutions forward. At the Entegra Performance Kitchen, our team of culinarians recommend and test different ingredients and cuts of meat to develop recipes. They consider every angle of your business to make recommendations based on cuisine, budget, customer preference and more. This approach helps operators experiment with dishes before bringing a menu to market and operate within their margins.

“From the raw cost of dairy and meats to vegetables, grains and fuel, our world is powered by knowledge of how prices cascade down to what you pay for goods and services and to the prices you set for your customers. Our goal with the Cost Outlook is to empower you to use the data in your day-to-day decision making.”

What are the next steps for anyone interested in learning more from Entegra’s supply chain experts?

“First, we encourage you to read through the Cost Outlook report and get a sense of where prices are heading. Our goal is to help you plan for the months ahead, knowing that some core commodities are going to be pricier. Then, join us on February 8, 2024, at 2:00pm ET for an informative discussion of how economic indices and commodity prices impact your business at the Entegra Cost Outlook Webinar. This webinar will help you set your purchasing strategy for many of the core ingredients you use on your menu.”

Register now.