• Advertise
  • Contact Us
  • About Us
  • Supplier Directory
  • Login
  • Subscribe
  • Logout
  • My Profile
  • 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
    • 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
  • BLOG
  • PODCASTS
  • VIDEOS
  • WHITEPAPERS
Home » Dig In: Restaurants to See Cost of Beef Decrease as Much as 17 Percent

Dig In: Restaurants to See Cost of Beef Decrease as Much as 17 Percent

FoodBev_Meat_2.gif
February 24, 2016
SpenDifference

The outlook for beef and other commodity costs is contained in the company’s annual purchasing forecast, which tracks the prices restaurant chains pay for food products.

“The drop in beef prices is clearly the best news operators have had in many years,” Dove said. “With cheaper beef and lower prices of other commodities, restaurants are starting to consider lowering menu prices to increase customer counts and boost their profit margins at the same time.” Dove added that winter storms hitting key cattle and grain regions are not expected to affect production or prices.

Higher cattle weight and a 4 percent rise in production led to the forecasted price decline for beef, he said.

The cost of corn, which drives prices of the other commodities, is forecasted to be below $4 a bushel to $3.96 for 2016, according to the purchasing forecast.

Boneless chicken breast meat will decrease in cost by 3 percent to 4 percent in 2016 because of an increase in supply. Last year’s avian flu led to a drop in exports and a “tremendous amount of supply” domestically, Dove said.

Turkey flocks were especially hard hit by the flu, with 7 million birds destroyed. That resulted in a 28 percent cost increase for turkey breast in 2015. The price is forecast to remain at $4.50 a pound or slightly higher in 2016, Dove said.

“Overall, restaurant operators are in a good spot for 2016 as long as they have risk management strategies in place to blunt unexpected volatility in commodity costs,” Dove said.

Source: SpenDifference

RELATED CONTENT

RELATED VIDEOS

Technology Sourcing/Procurement/SRM Food & Beverage
KEYWORDS Food and Beverage Procurement restaurant supply chain management Service Industries Sourcing Sourcing/Procurement/SCM SpenDifference Supplier Relations Supply Chain Management: service industries Supply Chain Risk Management Technology
  • Related Articles

    As Much as 30 Percent of Inventory Could Be Dead or Obsolete

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

SpenDifference

Restaurants to Back Off on Menu Price Hikes, Increase Group Purchasing

More from this author

Get regular updates!
Subscribe to our newsletter

Enjoy curated articles directly to your inbox.

Popular Stories

  • 1209_themarketforlogistics

    How an Investment Banker Views the Market for Logistics and Supply-Chain Tech

    Technology
  • 1115_chinarareearthminerals

    Podcast | Can China’s Monopoly on Rare Earth Minerals Be Broken?

    Sourcing/Procurement/SRM
  • 1206_howglobaltradersplan

    Podcast | How Global Traders Can ‘Plan for Crazy’

    Global Trade Management
  • 1210_cultureoffeargripsups

    ‘Culture of Fear’ Grips UPS: Workers Say Injuries Are Underreported

    Logistics
  • 1125_themodernfactory

    The ‘Modern’ Factory Remains a Dream for Many Manufacturers

    Technology

Digital Edition

55746

Subscribe today and receive the latest issue

Start Your Subscription

Case Studies

  • Energy Storage Company Saves $50 Million With Demand Planning

  • Locus Robotics Helps E-Retailer Deliver During Holiday Peak

  • Manufacturer Slashes Shipping Costs With AI Packaging Solution

  • Apparel Retailer Saves $45 Million With Reverse Logistics Solution

  • QuestaWeb Configures Fragrance Company’s Complex Procedures Into Its Advanced FTZ Software

Visit Our Sponsors

  • More From SCB
    • Featured Content
    • Video Library
    • Think Tank Blog
    • SupplyChainBrain Podcast
    • Whitepapers
    • Webinars
  • The Magazine
    • Digital Issue
    • Subscribe
    • Manage Your Subscription
    • 100 Great Partners Form
  • Resources
    • Newsletters
    • Events Calendar
    • SCB's Great Supply Chain Partners
    • Supplier Directory
    • Case Study Showcase
    • Supply Chain Innovation Awards
  • SCB Corporate
    • Advertise on SCB.COM
    • About Us
    • Privacy Policy
    • Contact Us

All content copyright © 2016 - 2018 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