In the latest quarter, only restaurants offering value-priced menus have experienced positive growth in comparable sales. Net sales growth now requires strengthening the value proposition of their offerings. With challenges of rising labor and food costs, and uncertainties related to climate and market risks, the opportunity lies in enhancing agility, streamlining sourcing and supply processes, and improving cost-of-goods-sold (COGS) forecasting in the supply chain to confront these challenges.
Are restaurant prices maxed out?
As COVID related commodity price spike and volatility recedes, the price trends and persistent uncertainty from climate and global supply risks present a new market reality. Together with additional pressures to implement sustainable climate related practices in agriculture, restaurant companies need to evolve their food supply chain practices to improve efficiencies, risks and agility together.
A new integrated sourcing, supply planning and COGs forecasting process to cover a range of priorities from cost, risks and sustainability while maintaining the agility to respond to changes – both internal and external can elevate supply chain performance for today’s markets. For this, customers need integration across these processes that will enable their managers and executives to automate their processes while bringing up the information they need in real-time to drive the improvements. With automation, this will further give managers the time they need to focus on their priorities.