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Restaurant menu prices are expected to rise another 6% over the next 12 months

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Executives say they have already raised menu prices by an average of 9% over the past year, according to the survey, with more than two in three (71%) seeing significant increases in energy costs. Additionally, six in 10 (60%) have experienced significant food and beverage price inflation.

“The double whammy of cost and availability issues is putting enormous pressure on operator margins,” says Karl Chessell, CGA Business Unit Director – Hotel and Food Operators, EMEA.

“Combined with the growing cost of living crisis for consumers, this means that trading conditions will be very difficult for the remainder of 2022.”

Businesses are also facing shortages of essential food and drink, according to the survey. Eight in 10 (81%) have had their product lines reduced, while more than half have seen products not arrive (62%) or have been delayed (51%).

“The long-term future for hospitality is bright, but for now, leaders will need to find the right balance between absorbing soaring costs and passing them on to guests,” adds Chessell.

“The enormous supply challenges also underscore the need for urgent and sustained government support for the sector.”

Despite rising costs, hospitality leaders remain focused on the sustainability of their businesses.

Almost half (49%) plan to introduce measures to reduce their carbon footprint, with priorities such as reducing energy consumption or switching to renewable sources, consolidating deliveries, working with greener suppliers, reducing waste and adding plant-based foods to menus.

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