Food prices will continue to increase in 2015
Even though oil prices have gone down in the first quarter, this has had very little effect on holding or reducing food prices. Certainly many reports blame global warming as being part of the issue, however it is a combination of many factors that affect our food prices.
Ultimately this has an effect on hotels, restaurants, cafes, pubs, catering businesses and food wholesale companies. Managing those costs and ensuring that you are still competitive in your market is going to be a challenge. All the more reason why you should making sure all of your ingredients have up to date prices and this is intrinsically linked to all you sub recipes, recipes and menus in Kitchen CUT.
In the latest upgrade, we added alerts that highlight any under performing parts of your business as well as price variance reports on every one of your ingredients.
Here is an overview of the average expected increases being reported globally:
- Meat 3% to 6%
- Fish & seafood 4% to 5%
- Dairy & eggs -1% to 2%
- Grains 1% to 2%
- Fruit & nuts 1% to 4%
- Vegetables 3% to 5%
Dish cost accuracy is vital
Gone are the days when you used to be able to take your protein price add 10% and multiply by 4 or 5 to arrive at your dish cost. In today’s market you need to have a higher level of accuracy to make sure that you are accounting for everything else in the dish. With vegetables potentially increasing 5% this year, that can have a massive impact on your dish cost and selling price.
Also with so much competition and the constant price war, customers expect better value for money and as operators you are being pressurised to reduce your selling prices as much as you possibly can. So the need for highly accurate costings has never been more important – giving you the ability to make incremental adjustments to recipes, dishes and selling prices and still maintain the right margin% and a healthy Gross profit.
Don’t leave it too long, start to get on top of this now so that you can stay competitive in the market and make the profit you need. Take a free trial today and see how Kitchen CUT can help you to manage your food costs when ingredient prices fluctuate.