• Advertise
  • Contact Us
  • About Us
  • Supplier Directory
  • Login
  • Subscribe
  • Logout
  • My Profile

  • CORONAVIRUS
  • LOGISTICS
    • Air Cargo
    • All Logistics
    • Express/Small Shipments
    • Facility Location Planning
    • Freight Forwarding/Customs Brokerage
    • Global Gateways
    • Global Logistics
    • Last Mile Delivery
    • Logistics Outsourcing
    • LTL/Truckload Services
    • Ocean Transportation
    • Rail & Intermodal
    • Reverse Logistics
    • Service Parts Management
    • Transportation & Distribution
  • TECHNOLOGY
    • All Technology
    • Artificial Intelligence
    • Cloud & On-Demand Systems
    • Data Management (Big Data/IoT/Blockchain)
    • ERP & Enterprise Systems
    • Forecasting & Demand Planning
    • Global Trade Management
    • Inventory Planning/ Optimization
    • Product Lifecycle Management
    • Sales & Operations Planning
    • SC Finance & Revenue Management
    • SC Planning & Optimization
    • Sourcing/Procurement/SRM
    • Supply Chain Visibility
    • Transportation Management
  • GENERAL SCM
    • Business Strategy Alignment
    • Education & Professional Development
    • Global Supply Chain Management
    • Global Trade & Economics
    • HR & Labor Management
    • Quality & Metrics
    • Regulation & Compliance
    • SC Security & Risk Mgmt
    • Sustainability & Corporate Social Responsibility
  • WAREHOUSING
    • All Warehouse Services
    • Conveyors & Sortation
    • Lift Trucks & AGVs
    • Order Fulfillment
    • Packaging
    • RFID, Barcode, Mobility & Voice
    • Robotics
    • Warehouse Management Systems
  • INDUSTRIES
    • Aerospace & Defense
    • Apparel
    • Automotive
    • Chemicals & Energy
    • Consumer Packaged Goods
    • E-Commerce/Omni-Channel
    • Food & Beverage
    • Healthcare
    • High-Tech/Electronics
    • Industrial Manufacturing
    • Pharmaceutical/Biotech
    • Retail
  • REGIONS
    • Asia Pacific
    • Canada
    • China
    • Europe
    • Latin America
    • Middle East/Africa
    • North America
  • THINK TANK
  • PODCASTS
  • VIDEOS
  • WHITEPAPERS
Home » Food Cost Reduction Strategies Are Suggested for 2014

Food Cost Reduction Strategies Are Suggested for 2014

January 7, 2014
FSR Magazine

The costs of products include more than the price of raw materials. Supply and demand are the key elements of price inflation; however, shrink, labor, packaging, overhead and freight also determine how finished goods are priced. Knowing what products to buy and when to buy them, and adding some flexibility to menu offerings, can negate a large percentage of the cost increases caused by inflationary factors.

During the last five years, food costs have risen a total of 7 percent. For 2014, we are forecasting that prices will increase 2 percent, slightly better than the 2.6-percent increase in 2013. While some products will fall in cost, others will rise. With the proper buying and menu strategies in place, however, restaurants can adapt easily and maintain profit margins without raising prices and driving customers away. Here's how the New Year is shaping up.

Corn will decrease in price by 20 percent"”welcome news for every restaurant operator. Always remember that "corn is king," because it's the main ingredient in animal feed and a key driver to inflation, affecting other commodity prices. We experienced an unprecedented drought in 2012 that hurt crop conditions and supply. Coupled with new government mandates on ethanol, this drove corn prices to a record high. But now, with the cost falling dramatically, we'll see decreases in the cost of poultry"”except for wings, always in high demand. The cost of chicken-breast meat will drop between 5 and 9 percent, while wings will rise in price by 2 to 3 percent. Beef, on the other hand, will actually increase 2 percent in cost due to its recovery cycle of two years or more.

Cheese prices will come down 3.2 percent, except for the usual seasonal increase late in the year. Pork prices also will decrease. One commodity to pay close attention to is shrimp, which is rising in cost. Shrimp farms in Southeast Asia and India were severely hurt by disease in 2013. Supply continues to be very tight, and will remain tight at least through the first half of 2014.

Read Full Article

RELATED CONTENT

RELATED VIDEOS

Technology Sourcing/Procurement/SRM Order Fulfillment Food & Beverage
KEYWORDS Demand Planning Food and Beverage food supply chain FSR Magazine order fulfillment Restaurant Supply Chain Sourcing/Procurement/SCM Supply Chain Management Supply Chain Management: Food and Beverage Technology
  • Related Articles

    Short-Term Cost Reduction Higher Priority Than Long-Term Growth in 2014, Most Chief Procurement Heads Say

    Stressing Cost Reduction Too Much, Car Makers Wreck Relations with Suppliers, Study Finds

    Despite Avian Flu, Chicken Cost Expected to Decrease, But Increase Seen for Cost of Eggs

  • Related Events

    Post-Pandemic Impacts on Food & Beverage Businesses and How to Ensure Resiliency

FSR Magazine

Food Cost Reduction Strategies Are Suggested for 2014

More from this author

Wake up to Coronavirus Updates and the latest Supply Chain News!

Subscribe to our Daily Newsletter

Timely, incisive articles delivered directly to your inbox.

Popular Stories

  • Coronavirus-watch-Armada

    Virus Update: Pfizer Plant Cited for Quality Issues; Vaccine Maker Warns of Raw Materials Shortage

    Coronavirus
  • China

    China’s Tech Revolution Aims to Cut Dependence on West

    Technology
  • Walmart

    Walmart Embraces a Local Fulfillment Model for Grocery

    Logistics
  • Shipping Logjam

    U.S. Retailers See Millions in Sales Delays Amid Shipping Logjam

    Coronavirus
  • How Can E-Commerce Retailers Compete?

    Smaller E-Tailers Weigh Pros and Cons of Fulfillment by Amazon

    Logistics

Digital Edition

Scb feb 2021 lg

2021 Supply Chain Management Resource Guide

VIEW THE LATEST ISSUE

Case Studies

  • Remote Implementation: A Dose of the Right Medicine for B2B Pharmacy

  • LSP Saves Customer $1.5 Million a Year With MPO Global Inbound Management

  • Auto Supplier Wows Key Client Using riskmethods Supply Chain Savvy

  • Integrating Shipping and Compliance Saves Conglomerate Millions

  • How a Consumer Goods Giant Upped Its On-Time Delivery Performance

Visit Our Sponsors

6 River Systems ArcBest Armada
aThingz BluJay Burris Logistics
DSC Logistics DCSA (Digital Container Shipping Association) DHL Resilience360
Genpact Geodis GEP
GreyOrange Honeywell Intelligrated Infor
Inmar Kibo Commerce Logility
Magnitude Software MPO Old Dominion
Oliver Wight OpenSky Paccurate
Ports America Purolator QAD Precision
Red Classic Riskmethods Snapfulfil
TGW Systems Tradepoint Atlantic Transportation Insights
Watson Land Company Westfalia Technologies Workjam
Yang Ming    
  • More From SCB
    • Featured Content
    • Video Library
    • Think Tank Blog
    • SupplyChainBrain Podcast
    • Whitepapers
    • Webinars
  • Digital Offerings
    • Digital Issue
    • Subscribe
    • Manage Your Subscription
    • Newsletters
  • Resources
    • Events Calendar
    • SCB's Great Supply Chain Partners
    • Supplier Directory
    • Case Study Showcase
    • Supply Chain Innovation Awards
    • 100 Great Partners Form
  • SCB Corporate
    • Advertise on SCB.COM
    • About Us
    • Privacy Policy
    • Contact Us
    • Data Sharing Opt-Out

All content copyright ©2021 Keller International Publishing Corp All rights reserved. No reproduction, transmission or display is permitted without the written permissions of Keller International Publishing Corp

Design, CMS, Hosting & Web Development :: ePublishing