As a Restaurant Owner, How Concerned Should I Be About Tariff Wars As a restaurant owner, you should be very concerned about tariff wars, because they create hidden cost risks that can sneak up fast and hurt your bottom line. Here's why you need to watch it carefully: Ingredient Prices Will Spike
Imported foods like seafood, cheese, wine, coffee, produce, and specialty items could suddenly cost 10%-50% more overnight if new tariffs hit. Even domestic food prices can rise because suppliers compete for scarcer resources. Equipment & Supplies Get Expensive Tariffs on imported kitchen equipment (ovens, fridges, glassware, utensils) will increase build-out and maintenance costs.Even non-obvious items like packaging, takeout containers, and cleaning products could get pricier. Shrinking Margins
Foodservice operates on thin margins already (3-6%). Tariff-driven cost increases can't always be passed to customers without risking loyalty, meaning you absorb the hit. Unpredictable Supply Chains Tariff battles often disrupt supply chains, leading to shortages, substitutions, or delays, impacting menu consistency and guest satisfaction. Strategic Importance Smart owners are already diversifying suppliers, sourcing locally, and reworking menus to be flexible based on ingredient availability and costs. Some restaurants are even locking in long-term contracts to hedge against sudden tariff impacts. Forward-thinking advice: Stay nimble: Build a supply chain that can pivot fast. Educate customers: If costs rise, communicate transparently so guests understand.
Watch policy trends: Tariff wars often shift quickly based on elections, international agreements, or political tensions.
HOSPITALITY NEWS MAY | Page 29
Powered by FlippingBook