date_range 25 Mar 2022
schedule 3-5 mins

How Inflation Hits the Food Industry

Price increase

There has been increasing concern lately amongst those in the food industry surrounding the inflation rate. Everyone from food production to restaurateurs is tentatively eyeing their invoices as prices continually increase. Over the last decade, the UK has seen an alarming rise in the number of food banks springing up all over the country. With the cost of food becoming too high, some people are left with no choice but to seek alternatives.

How Takeaways and Restaurants tackling rising food prices

No restaurateur or takeaway owner wants to raise prices. This is a last resort as ultimately it usually results in the loss of customers. In the UK in 2021, inflation spiked to 5.4%. This left owners with their hands tied in a sense. Suppliers and production prices hit record levels. The invoices never lie and although some shouldered the loss from their own pocket, most were forced to increase food prices on their menu.

Covid-19 Impact on Food Price Inflation

The pandemic can be regarded as the main factor for rapid inflation in the food industry. Companies were forced to pay more not just for the product but for packaging, staff, and delivery drivers. There was intense pressure on the food industry to be able to work while still maintaining isolation and social distancing measures. A highlighted importance on food hygiene to ensure a minimal spread of the virus was implemented which slowed down the entire supply chain. The result was costs increased at a drastic rate.

Using Online Food Ordering Portals

When inflation rises throughout the country, the price of services increases too. Services must hike up their fees to survive the economic climate. Marketplace high commissioners in the food ordering industry were no different. This added stress to restaurant and takeaway owners as their unwanted partners who were chewing a massive portion of their profits during high inflation periods, increased their fees to take even more. Some businesses were sold off, some ran out of funds and ceased trading altogether.

Mealzo

Mealzo is a solution that takeaway and restaurant owners can adopt. This No Commission online food ordering platform with a whole host of business management tools and social media marketing experts aims to help local businesses during times of high inflation. Where other marketplace high commissioners would raise prices, Mealzo aims to navigate difficult times together with businesses by attracting more customers and generating more orders to increase revenue. If you are a local business owner and want to become a partner with Mealzo, our website has all the information and will help you get on board.