The Plates to Profits Report surveyed directors, owners, managers and chefs in restaurants, hotels and pubs, to investigate the impact the pandemic, rising inflation and increasing food costs is having on their operations. The report aims to not only truly understand the state of the sector but also gives operators actionable ideas on how they can increase the profit on every plate they serve.
Philip de Ternant, managing director at Creed Foodservice, said: “We all know the hospitality sector has taken a real hammering but to see the number of operators, who could very realistically be forced to close in the coming months, is sobering and stark.
“Inflation and rising food costs are affecting the entire supply chain, from suppliers, logistics companies, transportation, the front line such as restaurants, pubs and hotels, and wholesalers like us. Over the last year we've seen a 27% increase on eggs and baking potatoes, another staple, has risen by £8 a case. Combine this with consumers who are also having to review their expenditure – nearly half of operators told us that the number of bookings at their establishment have reduced - the pressure mounts even more.
“The vast majority of operators (85%) told us they will need to increase their menu prices to stay financially viable. However, 83% are worried that if they do this it will alienate consumers and put them off visiting their establishment. They feel stuck between a rock and hard place.”
Key report discoveries include:
- Due to a lack of skilled staff, 49% have changed their menu to include simpler dishes
- Almost two thirds (63%) said business concerns around revenue and profit impacted their mental health in the past 12 months
- 47% have seen the number of booking at their establishment reduce
- 77% consult their wholesaler for cost-saving advice
- 42% are offering premium sides to encourage consumer spend
- Burgers, pizza and pasta are the dishes that deliver the highest margins
- 95% agreed they could improve the levels of food waste in their business
- A fifth are charging for bread and butter