Propel Morning Briefing Mast HeadAccess Banner  
Propel Morning Briefing Mast Head Propel's LinkedIn LinkPaul's Twitter Link Paul's X Link

McCain Banner
Morning Briefing for pub, restaurant and food wervice operators

Wed 3rd Apr 2024 - Food price inflation in hospitality falls again but remains more than double the rate seen in retail sector
Food price inflation in hospitality falls again but remains more than double the rate seen in retail sector: Food price inflation in hospitality remains more than double the rate seen in the retail sector despite steady easing over the last 12 months, the new edition of the CGA Prestige Foodservice Price Index reveals. In March 2023, the level of food inflation in hospitality and retail briefly converged at 19%. However, while inflation in retail as measured by the Consumer Price Index has eased since then to 5%, wholesale price inflation for hospitality operators as measured by the Foodservice Price Index has only fallen to 12%. This means inflation in hospitality is currently 2.4 times higher than in retail. Supermarket food inflation typically falls faster than in the hospitality sector due to big retailers’ ability to swiftly pass on reductions in energy and commodity costs to consumers. These businesses often have more streamlined supply chains and can adjust prices quickly in response to market changes and government pressure to keep food prices stable – especially during economic downturns, which can accelerate the deflation process. In contrast, hospitality suppliers, with more fragmented and complex operational models, may not be able to reflect cost savings so rapidly. In more positive news for hospitality businesses, the latest Foodservice Price Index reports month-on-month deflation for only the second time in 28 months, and the first time since October 2023. Year-on-year inflation remains in double digits in eight of the ten categories of the index, with oils and fats the only one in deflation. Shaun Allen, chief executive of Prestige Purchasing, said: “It is positive to see inflation continuing to fall, and it will be encouraging for operators to see that after two years of sharp increases, food prices have fallen month-on-month in five categories.” James Ashurst, client director at CGA by NIQ, added: “Hospitality has dealt well with the inflation crisis but has inevitably had to pass on higher costs to menus, which in turn compromises consumer spending. We will hopefully see more easing over the spring and summer, but for now the trading environment remains challenging.”


Return to Archive Click Here to Return to the Archive Listing
 
Punch Taverns Link
Return to Archive Click Here to Return to the Archive Listing
Propel Premium
 
Meaningful Vision Banner
 
Mccain Banner
 
Casual Dining Banner
 
Tabology Banner
 
Drinkaware Banner
 
Contract Furniture Group Banner
 
Alcumus Banner
 
Santa Maria Banner
 
Propel Banner
 
Christie & Co Banner
 
Sideways Banner
 
CACI Banner
 
Airship – Toggle Banner
 
Wireless Social Banner
 
Payments Managed Banner
 
Deliverect Banner
 
Zonal Banner
 
HGEM Banner
 
Nutritics Banner
 
Heinz Banner
 
Zonal Banner
 
Access Banner
 
Propel Banner
 
Tabology Banner