The restaurant world has always been a rollercoaster, hasn’t it? But lately, between recovery efforts and changing trade policies, it feels like the industry is facing a new set of challenges. If you’re a B2B company serving restaurants, you’re likely experiencing these pressures alongside your clients and looking for ways to not just survive but actually grow. Let’s talk about what’s happening and what forward-thinking companies are doing about it.
The Real Impact of Tariffs on Restaurant Clients
The effects of tariffs on the restaurant industry are significant and well-documented. According to the National Restaurant Association’s 2023 State of the Industry Report, 92% of restaurant operators reported higher food costs as one of their top challenges, with many citing tariffs as a contributing factor.
Bureau of Labor Statistics data shows that food prices have consistently outpaced overall inflation in recent years. The Producer Price Index for food manufacturing increased 4.2% from 2021 to 2022, putting additional pressure on already thin restaurant margins, which typically range from 3-5% according to industry benchmarks.
For equipment and supplies, the situation is equally challenging. The U.S. International Trade Commission confirmed that steel tariffs, which have been in place since 2018, have increased costs for restaurant equipment manufacturing. Many restaurants defer equipment upgrades as a result, with the average lifespan of commercial kitchen equipment extending from 7-10 years to 10-12 years according to Foodservice Equipment Reports.
What’s Working for B2B Companies Right Now
Despite these challenges, some B2B providers are finding effective ways to adapt and grow. Here’s what’s working:
Building Stronger Local Networks
Localizing supply chains has become a genuine trend in the industry. The 2022 National Restaurant Association Show survey revealed that 76% of restaurant operators were actively seeking more local suppliers to reduce costs and supply chain vulnerabilities.
The USDA reported that local food sales reached $11.8 billion in 2019 (their most recent comprehensive data), with consistent growth in farm-to-restaurant supply chains. B2B companies that can facilitate these connections are finding new avenues for growth.
Smart Tech Investments That Make a Difference
Technology adoption in the restaurant industry accelerated during the pandemic and continues to be a priority. According to the 2023 Restaurant Technology Industry Report by Toast, 95% of restaurateurs agree that technology improves their business efficiency.
For B2B providers, digital ordering platforms have become essential. The National Restaurant Association reports that 63% of restaurant operators view technology as providing a competitive advantage, creating opportunities for B2B companies that can offer technology solutions alongside their core products and services.
Value-Added Services That Build Loyalty
Customer retention strategies are more important than ever in a challenging market. Harvard Business Review research has consistently shown that increasing customer retention rates by just 5% can increase profits by 25% to 95%.
Educational content and consulting services are proving particularly valuable. According to Technomic’s 2022 Operator Survey, 78% of restaurant operators value suppliers who provide market insights and business guidance beyond just selling products.
Expanding Client Base
Another way companies have survived economic hardships is through broadening their client list and diversifying the type and size of their customers. This helps to protect from a potential catastrophe is a large buyer suddenly drops off. Closing more deals is challenging; however, companies like CSG make it more manageable by providing verified online contact directories to enhance their marketing capabilities, increasing the potential for revenue growth.
What to Do Next
If you’re feeling the pressure from tariffs and looking for ways to strengthen your B2B restaurant business, there are clear pathways forward based on verified industry trends. The most successful companies aren’t just weathering the storm, they’re finding ways to solve new problems for their restaurant clients.
Our team at Chain Store Guide will be at the National Restaurant Show next week at Booth #5306, where we’ll be sharing more detailed insights about navigating these challenges and turning them into opportunities for growth.
While the current market conditions present real obstacles, they’re also creating openings for innovative B2B providers to establish stronger relationships with their restaurant clients and capture market share from less adaptable competitors.
