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Inflationary Times Call For A Review Of Your Cost Base

In these inflationary times, looking for ways to reduce your cost base is critical to managing your cash flow.

With the cost of commodity ingredients increasing and the challenges that cafe owners experience from a labour perspective, it can be challenging to work through the maze that is your cost base.

We recently spoke with a number hospitality businesses from café owners, restaurateurs, to key accounts, both existing customers and some who don’t buy from us, to discuss how they are dealing with these times.

One area that was a discussion point was whether they should be making in-house or purchasing directly. Leaning into this discussion, we worked through each option with these cafe owners using a simple cost calculator. This simple tool demonstrated that while the perception is that it would be most cost-effective to produce in-house, purchasing one of our products is better value for money. Adding to this, we discussed the reduced wastage costs due to our product format and the labour costs required for them in the making. 80% of businesses could save costs by purchasing a finished cake rather than making it themselves.

We share this and the tool with you to enable you to do this work yourselves and not just for our products but across all of your menu so you can make an informed decision to help with your cost base management.

We understand this is a challenging time for hospitality businesses and hope this resource sparks a cost reduction in your business. If you would like a copy of the cost calculator, please send us a DM.

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