Foodservice inflation accelerates in December – why benchmarking is critical

Food and drink prices in the hospitality sector rose by 1.1% in December, according to the recent data.

The uplift shows a significant acceleration in inflation to close 2025, with strong seasonal demand in the run-up to Christmas, combined with persistent supply-side constraints, pushing prices upwards across multiple categories.

For catering and procurement teams already operating under pressure, this kind of volatility is challenging. Margins remain tight, labour costs continue to rise, and customer price sensitivity limits how much of these increases can be passed on.

The key question is not simply that prices are rising – it’s how your organisation is performing in comparison.

Headlines don’t tell the full story

Market-wide inflation figures provide important context. But they don’t reveal whether your costs are increasing in line with the sector, or faster. When inflation rises by 1.1% in a single month, organisations should be asking:

• Are we paying competitive prices across key categories?
• How does our buying compare with similar organisations?
• Are supplier increases aligned with wider market movement?

Without structured benchmarking, these questions are difficult to answer with certainty. Decisions risk being based on assumptions rather than evidence.

Turning data into control

Benchmarking provides clarity. By comparing purchasing performance against like-for-like organisations, catering and procurement teams gain a clear view of where they stand.

This visibility enables organisations to identify pricing anomalies or inconsistencies and strengthen supplier negotiations with credible comparative data. In a fluctuating market, this level of insight is essential. It moves teams away from reactive cost-cutting and towards proactive performance management.

Managing inflation strategically

Periods of accelerating inflation often trigger immediate responses: switching suppliers, narrowing menus, or applying blanket savings targets. While sometimes necessary, these measures can affect quality, service consistency and customer satisfaction.

A more strategic approach begins with understanding where the real pressures lie.

For example, two organisations operating in similar sectors may experience different inflation impacts due to variations in contract structure, buying discipline or supplier performance. Benchmarking highlights these differences and provides a framework for targeted action.

Rather than responding broadly, teams can focus on specific categories, suppliers or sites where performance deviates from the norm.

Staying ahead of ongoing volatility

December’s figures reinforce a broader reality: foodservice pricing remains unpredictable. Supply chains continue to face disruption, and demand patterns can shift quickly.

In this environment, waiting for costs to escalate before reviewing performance is a risk. Regular benchmarking ensures organisations are continuously monitoring their position. It provides early warning of emerging trends, validates supplier pricing and supports more informed budgeting and forecasting.

If you would like to better understand your organisation’s purchasing and how it compares to others, get in touch with us here.

The Quenelles team