What the Shortages Mean for You and Your Kitchen Expenses

Coming off of a tough 2020, many of us had high expectations for 2021.

We thought it would be the year of recovery and a return of the events, catering, and restaurant industries.

While we did see some progress and many foodservice companies are finding their “new normal,” we are still a fair way off from pre-pandemic times.

Labor shortages continue to present a significant challenge to the industry, challenging catering businesses to operate on a skeleton crew to keep customers happy. On the other side of the coin, supply line issues have caused food shortages, limiting product availability across the world.

Each is a tough pill to swallow in their own rights, but together, these challenges put caterers in a difficult spot as they aim to rebuild and return to business as usual. Here’s what these shortages mean for your company and how you can manage them for the foreseeable future.

Navigating labor shortages

The current labor shortage is widespread, affecting foodservice businesses across the country. While less staff does reduce overhead, it also reduces the maximum output from your kitchen and, as a result, limits your revenue capabilities. Offering more pay or benefits to attract new talent may not be in the cards, so it may require some creative solutions to accommodate for the labor shortage.

One way to maximize your team’s efforts is to reduce your operating hours to the most popular times of the day. There’s no need to stretch your staff thin to cover the morning shift if the vast majority of your revenue comes from servicing dinner events or delivering late-night bites.

It can also help to trim down menu options, as less variety makes for a simpler kitchen workflow. When your team only needs to concern themselves with a handful of popular dishes, they can operate more efficiently and produce more in less time.

Working with food shortages

A food shortage doesn’t always mean a certain ingredient is completely unavailable — it could just mean that prices have skyrocketed, making it an unsustainable addition to the menu. The industry has been dealing with shortages since the start of the pandemic in March 2020 and it’s likely that the issue will remain in some form throughout 2021 and into 2022.

So, how can you maintain a great menu without breaking the bank for hard-to-find ingredients?

Substitutions are the name of the game this year. Opting for alternatives to high-cost products can be a great way to keep the integrity of your offerings while securing your profit margins. For example, fresh meat has been tough to procure, whereas frozen meat has been more readily available (and often at a lower cost).

Plant-based proteins—like seitan and tempeh—have also become a popular meat alternative that come with a much smaller price tag. It may take some creativity to incorporate alternatives without altering the culinary experience, but it’s worth it to reduce expenses.

It’s worth noting that limiting menu options isn’t just useful for managing labor expectations — it can also help to deal with food shortages. Removing inaccessible dishes from the menu (even temporarily) keeps customer expectations realistic while allowing you to allot your budget to ingredients that are cost-effective and easy to find.

Throughout the upcoming months, flexibility is the most important quality for catering professionals. Remain adaptable and ready to pivot at a moment’s notice, as we’ve learned that it’s the only way to go during uncertain times. These changes are temporary, and an agile approach will ensure that you can see your business through to the other side. 

Clint Elkins is the V.P. of Sales for SB Value, a Group Purchasing Organization that helps culinary professionals save an average of 16% on every food order. Membership is 100% free. No hidden fees. No extra work. Just extra profits. See how much you can save on your next food order when you become an SB Value member. Request a quote today.