An estimated $12 billion potential impact on the restaurant industry of a 25% Mexican and Canadian tariff on food and drinks is worrying us all.
Essential items like specialty cheeses, wines, seafood, and even specific kitchen equipment that are typically imported could see marked price increases. This situation could force restaurant owners to either absorb the cost hikes—squeezing already tight profit margins—or pass them on to consumers in the form of higher menu prices, which we all just had to increase last year due to inflation.
With consumer spending on eating out already in peril, the timing of these tariffs compounds an already tenuous situation. If these tariffs go through, restaurants will need to rethink some key operations. Below is a list of steps we recommend.
- Diversify suppliers to include more local and regional options.
- Rethink the menu, focusing on dishes with ingredients that are less affected by tariffs.
- Streamline everything to optimize margins – leverage technology for better inventory and order management.
- Keep your eye on marketing. Engage customers through loyalty programs and targeted promotions.
Need help with streamlining your operations? We’re here to help. Contact us at [email protected] to chat about how we can support you.
