Good Day Chefs
We are facing some challenges in the coming months from things beyond our control. The current administration has chosen to employ tariffs with 2 of our key allies in trade and that will directly impact the cost of goods that we sell.
23% of Agricultural imports come from Mexico and another 14% coming from Canada – so 37% of US agricultural products are now going to be subject to a 25% tariff.
What Does That Mean For Us?
It means that the cost of the product when it reaches us can go up a potential of 40%.
So a couple of examples:
- Tomatoes from Mexico that cost $25/case, will now cost $35
- Beef from Canada that cost $10/pound, will now cost $14
These are cost increases that could be seen in the near future, as soon as next week.
Then there are the longer production cycle impacts – such as the costs of grains coming from Canada used in American beef production and how that price increase will drive up the price of domestic beef starting in the fall of this year.
These impacts will not only be felt on the direct import of goods from those countries, but also drive up costs of domestic production as US producers will respond to the impacts of retaliatory tariffs on US exports. So US producers will increase the prices they charge in America in an attempt to offset the lost revenue from the export market. These increases are harder to predict on both volume of increase and timing, but they will definitely happen if our government doesn’t backtrack the damaging policies they are implementing right now.
That is a lot to digest and I want you to all feel comfortable asking questions to each other, as well as myself. This will take all of us communicating proactively and effectively to limit the damage done to our business. Now that we understand the things out of our control – let’s talk about the things that we can control.
These are all key contributors to running a successful kitchen that we employ already. This is not to say any of this is new – simply a reminder of how we can control costs and get the most out of every dollar spent.
Effective Purchasing
Using the softwares that we have invested in will be more important than ever. Generating order guides out of Galley wherever possible and being critical of our production sheets to be sure they are accurate will give us better data to make decisions from. No one should be ordering food without utilizing order sheets with pars or some other kind of purchasing support.
Menu Design
How we design our menus can support improved costs by focusing the revenue we get from our clients on the things that are providing the most value. By ensuring that we are able to build colorful presentations through a variety of vegetables or other natural means we reduce our dependence on additional garnish. Including “Chef’s Choice” and “seasonal vegetables” on the menus we sell enables us to make decisions in the moment based on product availability and price.
Cross Utilization
Getting the most of every purchase will be extremely important. We should be identifying every opportunity to create efficiency in production by limiting the number of different vinaigrettes we are making or using the same cut of beef across multiple clients in the same week. What sauce bases are we using this week? How can we broaden the application?
Seasonality
Make sure that we are using seasonably appropriate fruits and vegetables wherever possible – the hardest part being fruits for the sports teams or special request vegetables for weddings etc.
I will work with the sales team to give them the needed info to communicate the importance of this to our customers. We can navigate the menus we have already sold with our sales team to ensure that the clients know that we are making decisions based on what is best for their guests and to provide the best value to them.
Food Waste Reduction
Pickle it, dry it, smoke it, powder it, ferment it. Last of all, compost it. We need to revisit some of the many ways that we can improve the cost effectiveness of our kitchens. We have to be sure that we have a plan for excess vegetables before they are getting soft and not waiting until they start to degrade. Proteins can be frozen with great success, but could it be better to cure and then smoke? Leftover grains and rice present a different issue – what can be done beyond staff dinner? Rice cakes or puffed quinoa are 2 examples of ways to give them a second life.
Thanks to all of you for the hard work you put into our kitchens on a daily basis. We are facing challenges on multiple fronts, but I believe in each of your abilities and know that together we can overcome these obstacles. This is the first communication from me in this type of Chef’s newsletter format, but as I type it, I know it will not be the last. I will continue to be better about supporting each of you in your decision making and be sure that I am supplying you with the tools needed to tackle your specific problems.
Remember that you are all resources for each other as well and that your collective experience makes us stronger as a company.
Talk soon,
Chef Robbie