How Caterers Can Navigate the Increasing Cost of Food in 2024
/Cutting the cost of offering catering services is always great, but it can be even more so during the catering busy season. Caterers are constantly faced with the challenge of providing exceptional, memorable service for their client’s special day, but sometimes this can be difficult to do without breaking the bank. Food cost is one area where caterers might not be taking full advantage of the tools at their disposal. In 2024, technology and GPOs make it possible for caterers to lower the cost of planning their events so that they can focus on what really matters: creating tasty, lasting memories.
Let’s take a look at how caterers can combat the rising cost of food in 2024.
Understanding the 2024 Food Cost Landscape
Catering feels more expensive now than ever before. Why is this? It’s a combination of several factors, some long-term and some short-term, that makes putting together an event feel much pricier than in years past. These include:
Supply Chain Disruptions: Global events and natural disasters continue to impact the availability and price of ingredients.
Inflation: The general rise in prices affects everything from raw materials to packaging.
Labor Costs: Increased wages for food production and transportation workers add to the overall expense.
Consumer Trends: A growing demand for sustainable and organic products often means higher costs.
Using Technology to Lower Food Costs
For caterers, the ability to meticulously plan a catering event without having to keep track of a mountain of papers and spreadsheets can work wonders for reducing food costs. An all-in-one catering management software, like Total Party Planner, allows caterers to centralize their planning and make observations about past catering events to better visualize where costs are increasing.
Catering management software helps caterers reduce food cost through:
Recipe Management: Calculate precise food costs and adjust ingredient quantities easily. This helps you understand the cost of each dish down to the last ingredient.
Inventory Control: Keep track of what you have in stock and avoid over-purchasing. Automated alerts can notify you when stock levels are low, ensuring you never run out of essential items.
Reporting & Statistics: The ability to collect, analyze, and present numerical data helps you understand patterns and trends in your operations. Generating detailed reports allows you to identify cost-saving opportunities and make informed decisions to improve profitability.
Implement Smart Purchasing Strategies
Understanding where costs are increasing is a crucial first step. So, how can caterers action those insights to build sustainable, low-cost practices? This is where purchasing strategies come into play. Don’t underestimate the power of networking! Groups, like SB Value, harvest the power of collective buying power to bring caterers and food professionals lower kitchen costs. In fact, SB Value members save on average 17% on their kitchen orders!
SB Value negotiates prices on behalf of caterers to secure the most affordable option. Joining a GPO can help reduce the cost of food prices in 2024 through:
Group Purchasing Power: Join a network of businesses to leverage bulk purchasing discounts. By buying in bulk, you can secure lower prices on high-quality ingredients.
Cost-Effective Sourcing: Find the best deals on high-quality ingredients without sacrificing quality. SB Value’s expertise can guide you to the most cost-effective sources for your needs.
Sustainability: Access to sustainable and cost-effective options that meet today’s consumer demands. Sustainable sourcing not only helps the environment but can also attract eco-conscious clients.
Tips and Tricks for Reducing Costs
Technology and networking are two powerful tools for reducing food cost in 2024. How else can caterers keep an eye on that number?
Go Local, Go Seasonal: Hop on board the local and seasonal produce train. Not only does it cut down on those pesky transportation costs, but you'll also be supporting the hardworking farmers in your community. Win-win!
Menu Masterminds: Get clever with your menu planning. Find ways to use the same ingredients across multiple dishes. It'll save you from buying a ton of different ingredients and reduce waste. Smart, right?
Flexible Pricing: Let's be real, ingredient costs can be a rollercoaster ride. Stay on top of it by adjusting your pricing accordingly. Just make sure to keep your clients in the loop – transparency is key.
Substitution Station: High-priced ingredients putting a dent in your profits? No sweat! Scout for cost-effective substitutions that still deliver on taste and quality. Your clients (and your bottom line) will thank you.
Conclusion
The catering industry will undoubtedly face ongoing challenges with rising food costs. However, by embracing innovative solutions like Total Party Planner's catering management software and the group purchasing power of GPOs like SB Value, caterers can stay ahead of the curve. Leveraging technology for precise recipe costing, inventory control, and data-driven insights, combined with smart sourcing strategies through collective buying networks, will be key to maintaining profitability while delivering exceptional experiences. Here’s to a successful and delicious 2024!
