Winning in inflationary times

Many hospitality businesses are feeling the squeeze of inflation right now, and it can be hard to know where to start when trying to find ways to keep up with rising costs.

Whether you’re a hospitality-driven business or another kind of manufacturer, it’s challenging to match customer expectations that are sometimes unrealistic.

Inflation impacting business supply costs

In Entegra’s new white paper, “Winning in Inflationary Times,” we go over the biggest inflationary challenges faced by businesses today, which are:

• Product shortages
• Reduced margins
• Increased competition
• Short staffing
• Time shortages

This white paper is designed for anyone who wants to understand the real impact of inflation on their business — and how to overcome it. “Winning in Inflationary Times” will also give you insights into navigating these impacts so you can keep growing your business despite these challenges.

While it affects every company, some industries are more vulnerable to it than others. Given the current state of the economy, it's not a surprise that hospitality-driven businesses are looking for new ways to handle inflation concerns. Whether you own a hotel or manage a restaurant, you probably already feel its grip.

The three most significant challenges facing businesses

These three factors combine to create a perfect storm for certain operators. If you're feeling the effects of these issues on your business, you're not alone. But if you want to turn the tide, we have some tips that can help:

1. The supply chain is strained. With pent-up, increased demand and geopolitical conflict, traditional routes for attaining materials and goods have been significantly disrupted, if not broken outright. This means that the cost of goods has gone up across the board — but especially where it counts most: meat and produce. As a result of this strain on supply chains, prices are rising across all categories — and operators need to be ready with a plan to address this issue head-on with their customers before they're hit with negative reviews or social media backlash.
2. The labor market is more competitive. Beyond labor shortages in food processing and packaging driving costs higher, demand is growing as operators backfill more roles. For workers, competitive wages and benefits are table stakes as they consider more choices.
3. Customer expectations are higher. As inflation rises, customers’ purchasing power declines, making them more likely to weigh menu options and value when deciding where to eat. This means that customers are looking for deals and discounts. They want to know what they’re getting for their money — and they want it fast. To compete with other restaurants, upgraded service, cleanliness and amenities are the norms. Today’s consumers demand local, sustainable options and new healthful, wellness-focused offerings.

How restaurant owners can fight — and win — against inflation

As prices continue to rise and supply chains slow down, you know you need to partner with your group purchasing organization and distributor, but you’re not sure how. You also need to know about the key players in your supply chain and what to do to ensure that everyone has access to the products they need when they need them.

When you think of the restaurant industry, what do you see? Do you see a place where people go to eat, drink and be merry? Or do you see a complex supply chain that brings together food, labor and customers in a delicate balance?

In an industry that relies heavily on all three components to function correctly, it’s essential to understand how each piece is connected. Your supply chain is your lifeline. The more you know about it, the better equipped you'll be to make intelligent decisions. Inflation isn’t going anywhere. But the right GPO partner will help you come out on top.

If you're interested in learning more about these challenges and how you can address them head-on so your business can thrive in an uncertain world, check out Entegra’s white paper.