Riding the inflation rollercoaster
Foodservice inflation this year has been anything but predictable. After six consecutive months of increases through 2025 – with only a slight dip in December – operators have found themselves navigating a market that feels permanently on edge. Prices are rising, easing, then rising again, often with little warning. For hospitality businesses already operating on tight margins, this volatility makes one thing clear: managing pricing has never been more challenging.
A volatile climate for foodservice operators
Inflation in foodservice isn’t just about headline figures. It shows up in the day-to-day realities operators face: fluctuating ingredient costs, unpredictable supplier pricing, energy pressures and labour costs that refuse to stand still. Even when inflation softens briefly, few would argue that stability has truly returned.
The result is a constant balancing act. Increase menu prices too quickly and you risk alienating customers who are themselves feeling the squeeze. Absorb too much cost internally and margins erode at an alarming rate. Stand still for too long and suddenly you’re out of step with the market altogether.
In this environment, gut instinct and historical pricing models are no longer enough. What worked last year – or even last quarter – may not hold up in a market where costs can change month on month.
Why pricing decisions feel harder than ever
One of the biggest challenges for operators in 2025 is uncertainty. When inflation rises steadily over several months, as we’ve seen, it becomes difficult to know whether to treat increases as a short-term spike or a longer-term shift. A small fall in a single month offers limited reassurance when the overall trend remains upward.
This uncertainty feeds directly into pricing decisions. Operators are left asking: Are our costs genuinely high, or just higher than we’re used to? Are our menu prices keeping pace with the market – or racing ahead of it?
Without clear visibility, these questions are hard to answer with confidence.
Benchmarking: a tool for the back pocket
This is where benchmarking comes into its own. In a volatile inflationary climate, benchmarking gives operators a reliable reference point – something solid to hold onto when everything else feels in flux.
By comparing costs and pricing against relevant peers, benchmarking moves decision-making away from guesswork and towards evidence. It allows operators to see where prices may be drifting out of line – either too high, risking competitiveness, or too low, leaving money on the table.
Benchmarking doesn’t remove inflationary pressure, but it does provide clarity. Foodservice and hospitality operators, it can inform a range of practical decisions:
· Pricing strategy: Understanding how your prices compare helps ensure increases are defensible, proportionate and aligned with the market.
· Supplier conversations: Robust data strengthens negotiations, giving operators confidence when challenging price rises.
· Menu engineering: Insight into cost performance can highlight where adjustments will have the greatest impact on margin.
· Risk management: In uncertain conditions, knowing where you sit relative to others reduces the risk of reactive or overly cautious decisions.
Be confident in 2026
If 2025 has shown us anything so far, it’s that volatility is likely to remain a feature of the foodservice landscape into next year. Having benchmarking data in your back pocket won’t stop prices from rising, but it will ensure you’re not navigating the inflation rollercoaster blindfolded.
If you’d like to hear more about how our benchmarking reports could help your operation, get in touch with us here.
The Quenelles team