Operators advised to overhaul buying habits to tackle high beef, potato and coffee prices

Operators facing higher food and drink costs need to benchmark their purchasing and be ready to shake up bad habits this spring, warned hospitality buying specialist Lynx Purchasing.

The organisation highlighted several challenging product areas in the spring 2025 edition of its market forecast, including:

•             Beef: Beef prices continue to rise sharply, especially for premium cuts, and operators should expect further increases. Suppliers can advise on the availability of alternative cuts, but the time required to raise cattle means operators should budget for higher beef prices for some time to come.

•             Potatoes: Prices have continued to rise well ahead of the inflation rate, with the year-on-year price of unprocessed potatoes up 16.8% in December. With producers still recovering from the impact of flooding in early 2024, the effect of the freezing weather and floods in January this year is being assessed. 

•             Salads: The British salad industry has warned that post-Brexit checks on seed and plant imports will have a serious impact on this year’s crops, particularly tomatoes, peppers and cucumbers. Higher prices and delays in availability are likely unless the UK government streamlines the process, producers have warned.

•             Hot drinks: Coffee and cocoa prices have been at record prices on global commodities markets over recent months, which will keep hospitality prices high for the foreseeable futures, As Easter approaches, operators should also budget for higher costs for chocolate desserts. 

•             Orange juice: Supplies are short due to the impact of climate change. Brazil, the largest producer, exported 20% less concentrate year-on-year in the second half of 2024, which has had an impact on price.

Rachel Dobson, managing director of Lynx Purchasing said that operators can’t “afford to be complacent about any aspects of their purchasing costs”, adding: “Food inflation rose globally by about 6% in 2024, ahead of the overall UK rate, and that filters through into hospitality via price increases for a range of fresh, frozen and pre-made food products.

“At the same time, the cost of hot drinks and juices have seen sharp rises over recent months, and they are important drivers of sales and profits for hospitality. That puts further pressure on operators’ margins, and alongside continued high food costs represents a ‘double whammy’ of increased buying costs, at a time when there are already serious challenges in a range of fronts.”

She advised operators to ‘spring clean’ their buying process, benchmarking their suppliers against their competitors for price and quality. “Strong supplier relationships are essential, but they should always be based on sound business principles, never misguided loyalty,” Dobson said.

“There are also a few opportunities early in the year for occasions when customers are looking to treat themselves, such as Mother’s Day and Easter. Use specials boards to persuade customers to push the boat out, and speak to suppliers about changing availability – not only what’s in season but also what’s going out of season and may be good value.”