April CGA Prestige Foodservice Price Index: Hospitality’s Inflation Roller‑Coaster
Looking at this month’s index, it’s clear that the hospitality sector is still juggling a hefty dose of inflation—one that’s spinning up costs in a way that’s hard to keep steady. Over the entire basket of goods, prices climbed 2.3 % year‑on‑year and added another 0.6 % month‑on‑month. The numbers don’t lie: vendors and restaurants alike are feeling the heat from a cocktail of global commodity swings, supply glitches, soaring energy bills, and the seasonal tantrums of weather.
The Drivers Behind the Surge
- Global commodity market volatility: Prices on the international market are dancing unpredictably, pulling prices up and down.
- Persistent supply chain disruptions: Delays and shortages keep inventory higher than ever.
- Escalating energy costs: Transportation and refrigeration run on a higher-priced energy budget.
- Adverse weather conditions: Droughts and colder spells are topping up the cost ladder of raw materials.
Hot‑Spot Categories
Several categories are watching the numbers climb in the most noticeable fashion:
- Meat & Poultry: Beef demand is on fire, while poultry production battles persistent hiccups.
- Oils & Fats: Soy and rapeseed oils are asking for more, driving the whole class higher.
- Mineral Water, Soft Drinks & Juices: Year‑on‑year inflation keeps this group climbing.
- Fish: Overall year‑on‑year +0.4 % but month‑on‑month +2.0 %—a sharp lift caused by dwindling hake stocks and reduced cod quotas, nudging the market toward other white fish.
- Root Vegetables: The driest spring in a century has dented yields, hinting at price hikes later this season.
Key Voices in the Market
Shaun Allen, CEO of Prestige Purchasing, said,
“The April data underlines how tricky it’s been for our hospitality clients. The season brings its own swings, but the deep‑root inflation is still a stubborn beast. Meats, oils, and soft drinks are surging year-on-year. Fish is jumping sharp month-on-month, with stock drops and quotas tightening the kettle. We’re seeing a new wave of upward pressure—so operators need to plan procurement strategically to keep the price tags from spiraling.”
Reuben Pullan, Senior Insight Consultant at CGA by NIQ, added,
“A sudden rise in April’s food costs is a lagging nightmare for hospitality operators and their suppliers. Paired with the freight of higher labour costs that month, profit margins feel like coins in a leaky bucket, and menu prices just groove towards higher numbers. With pubs surfing a populating wave of warmer weather in late spring, we’re calling for stronger governmental support to keep the sector alive and protect jobs.”
Takeaway for Restaurants & Bars
It’s not just about creaming the menu. All the while, you also have to manage the kitchen’s bones, the supply line, and the hungry periphery demanding value. Here’s a quick checklist:
- Rethink procurement: Check if there are alternative suppliers or bulk purchasing bundles that can shave off costs.
- Ingredient substitution: When fish prices are up, consider seasonally affordable white fish alternatives.
- Energy efficiency: Evaluate refrigeration and cooking equipment; upgrade where needed.
- Staff budgeting: Plan for incremental labour cost increases—maybe involve flexible scheduling.
- Customer communication: Keep patrons in the loop: “We’re switching to the freshest, affordable flavors without sacrificing quality.”
Future Outlook
True, the index shows inflation gripping the sector, but the environment remains marked by resilience. Innovations in sourcing, technology, and even menu science should help chefs keep the taste the same while prices veer off. For now, the key is staying sharp, staying strategic, and keeping that witty smile on the front counter.
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