Foodservice inflation climbs in April amid supply issues
The index recorded a 2.3% year-on-year increase in its basket of goods, with a 0.6% rise from March
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Food and beverage prices continued to rise in April, according to the latest CGA Prestige Foodservice Price Index, adding pressure to hospitality operators already grappling with rising costs.
The index recorded a 2.3% year-on-year increase in its basket of goods, with a 0.6% rise from March. Analysts attributed the sustained inflation to global commodity volatility, ongoing supply chain disruptions, higher energy prices and extreme weather.
Meat and poultry prices rose due to strong demand for beef and challenges in poultry production. Oils and fats were also affected by high demand for soy and rapeseed oils. The mineral water, soft drinks and juices category experienced a similar upward trend.
Fish prices increased 2% month-on-month, driven by depleted hake stocks and reduced cod quotas in key fishing areas. Although year-on-year inflation in this category was 0.4%, analysts warned that limited supply would keep prices high and could prompt a shift to alternative white fish.
Root vegetable yields are also under threat after what has been described as the driest spring in a century. The category recorded a 0.6% annual increase, with further rises expected.
Shaun Allen, chief executive of Prestige Purchasing, said: “The April data underscores the complex landscape our hospitality clients are navigating. While we’ve seen some seasonal variations, the underlying inflationary drivers remain firmly in place.
“Whilst inflation has remained relatively low over the past 12 months, we are now seeing upward pressure coming through in a number of categories and it is important for operators to mitigate these impacts through strategic procurement and supply chain optimisation.”
Reuben Pullan, senior insight consultant at CGA by NIQ, added: “News of an uptick in key food and beverage costs in April is another unwelcome development for hospitality operators and their suppliers.
“Alongside a sharp increase in labour costs from April, it ratchets up the pressure on both profit margins and menu prices for consumers. Warmer weather has boosted trading in pubs in particular over the late spring, but better government support is urgently needed to help the sector sustain investment and protect jobs.”
