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Caterer, Licensee & Hotelier
August 2017
Engineer Your Menu To Avoid Costly Impacts Of Beef And Pork Price Increases PURCHASING COMPANY Beacon, is encouraging operators to rethink their menus, after reporting significant price increases in beef and pork. Beacon recently revealed that the cost of beef is currently at an all-time high, with prices up almost 40 pence per kg compared to July 2016, representing an 11% increase YOY. The price of pork is also on the rise and set to stay, where costs are up almost a third on 2016, with current prices sitting 20% higher than those in 2015, Beacon is offering its advice on how to carefully engineer a menu to alleviate the impact of these price increases. Alice Bexon, Purchasing Manager at Beacon, commented: “The cost of British, Irish and Imported Beef has risen and continues to rise dramatically, with current prices at an all-time high with pork showing a similar story. The latest Foodservice Inflation figures show that costs are up by 8.8%, the highest they have been in nine years and it is only a matter of time before foodservice outlets will not be able to swallow up these increases. However, this can be avoided with careful planning and research.”
Weigh up cost vs value When menu engineering, weighing up cost vs value is very important, making sure your menu is delivering quality whilst minimising cost. This can be as simple as reviewing the origin of your products, or the products themselves, to make sure you buying the best value product for your money.
Seek out alternatives According to Fairfax, the US BBQ trend for beef and
pork cuts for “low ‘n’ slow-style” cooking has seen what were previously underused cuts, such as beef brisket, beef shortribs and pork shoulders, soar in price. Always keep an eye out for alternative cuts that are available, which utilise lesser-used parts of the animal. For example, whole feather blades make a great alternative to brisket when slow cooking.
Rethink your steak offering In terms of steaks, Fairfax has reported that the demand for ribeye is continuously increasing, making this a more expensive choice for operators. With that said, we would advise considering rump as an alternative. Rump is less susceptible to wider beef price increases as the demand for this cut is lower in relation to other prime steak cuts. It is being often overlooked as a go-to great value steak option.
Ask the expert Take advantage of your butcher or butchery suppliers by asking them for their thoughts and ideas, as they may have knowledge that could help you maximise sales. For example, seek information from them on how you could innovatively present different cuts of meats in order to maximise your GP and create brilliant looking dishes too.
Focus on British We would recommend a focus on British, and communicating the locality of produce to your customers. Although costs may be higher than imported products, the opportunity for added value through provenance marketing can help you engage with guests. Alice continued: “In the long term, we predict that beef prices will begin to soften. The increased prices and strong export market are making cattle an attractive farming proposition again, and through an 18-month turnaround period, we could see the availability of UK beef increase and therefore prices steady. The same cannot be said for pork production, which looks likely to struggle to remain competitive against international exporters and adverse exchange rates – so look at what you can do to avoid passing on higher costs to your customers.”
Leisure Businesses Losing Thousands to Invoice Scammers LEISURE BUSINESSES are being warned to be vigilant following an increase in invoice redirection scams – costing businesses thousands of pounds.
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NatWest has released a short educational video to raise awareness of the scam, which involves tricking clients into updating bank account details for regular suppliers. The details are replaced with the scammer’s account which gets credited the next time the supplier is paid. The debt to the real supplier still stands, so the victim ends up having to pay twice. David Scott, Head of Leisure at NatWest, said: “This is a very effective scam which can have devastating consequences. Victims typically lose about £30k, although some cases have involved significantly larger sums. So every business, however big or small, is a potential target. “It is vital that any letters or emails that claim to come
from your suppliers, and which ask you to change bank account details, are vetted. “Call someone you know at the company using a number you know and trust, to ensure the instruction is genuine.” The new video explains how fraudsters select their targets by referring to information in the public domain that confirms trading and supply-chain relationships. It also shows examples of the fake instructions to help clients spot these scams. David added: “Education and awareness are key in the fight against fraud. “We encourage all those involved with keying and authorising payments to watch the new clip and to exercise extreme caution should they receive a request to update long-standing payment instructions.” Information on other common scams affecting both the private and public sectors can be found at www.natwest.com/stopfraud.