Chains urged to improve buying discipline to tackle rising costs
Those who do so will be in the strongest position to keep their price increase to the minimum over the next few months, Lynx Purchasing suggested.
A “disciplined” approach to ordering will lead to savings for operators amid raging inflation and sharp rises in costs, buying specialist Lynx Purchasing suggested.
"The Bank of England is now forecasting that inflation will peak at 11% later this year, and many staple products are seeing [an] increase well in excess of that," Lynx Purchasing managing director Rachel Dobson said.
"The impact of high inflation, along with increased labour, energy and transport costs, and lower consumer confidence, are all part of the ‘big picture' that operators have no choice but to endure, for at least the rest of this year and into 2023.”
Dobson’s comments come as Lynx Purchasing publishes its Summer 2022 edition of its regular market forecast.
"In that context, while "don't sweat the small stuff" is usually sound advice, in the current market a focus on making relatively small changes to purchasing habits can help make a real difference to margin and profits in a hospitality business,” she added.
Tips shared by the company to improve buying discipline include purchasing the most cost-effective pack size, whether a box, case, or tin; ordering commodity items from the cheapest supplier, checking orders and report incorrect or damaged goods to the supplier, avoiding delivery charges by meeting minimum order amounts and being organised, planning ahead and ordering in good time.
"Operators have no choice when it comes to passing on at least some of their increased costs to customers, with the official inflation figures showing that the cost of eating out was 8.3% higher in May than a year previously,” Dobson added.
"With consumer spending power under severe pressure, businesses that control their costs through disciplined buying will be in the strongest position to keep their price increase to the minimum over the next few months.”