Economic uncertainties in the supply chain will continue to follow the hospitality industry into 2024. The group purchasing power Avendra provides our clients minimizes the impacts of a strong labor market, increased food demand, and volatile raw material costs.
As the leading hospitality procurement services provider, Avendra’s supply-chain experts continually monitor the supply chain and provide data-driven guidance to clients. The following brief list offers some topline information on the current state of the supply chain.
Overall inflation is expected to cool amid continued measures by the Federal Reserve in the US and other central banks around the world. Price growth in most areas throughout the hospitality industry will continue but at a slower pace than it has in recent years.
“At Avendra, we remain committed to working with our suppliers to meet your needs — both on supply assurance and on pushing back against inflation,” states Chip McIntyre, Senior Vice President of Strategic Sourcing for Avendra Group.
We continue to keep our customers informed by providing leading-edge insights to help them manage their business. Recently, Avendra published our 2024 Cost Outlook, with Avendra’s sourcing specialists providing mitigation strategies for key categories in the near future:
Rooms: Costs have been relatively stable and the trend now is toward more sustainable options, including large-format amenities. If you’ve not yet shifted your branded amenities, now is the time to work with your Avendra representative to check stock and convert to the brand standard program.
Textiles: While the textile supply is strong, we’re encouraging our clients to increase par on terry and sheeting to assure product availability. Contact your Avendra specialist at the rooms distributor to accommodate larger purchases.
Golf agronomy: This category is expected to remain stable, but we are advising our customers to participate in the Early Order Program to lock in pricing and inventory. Also plan early for golf mowers and utility vehicles to allow for 3-12 months delivery time.
Food and beverage: Food costs continue to rise, although increases are less than in recent years. Avendra sourcing specialists are advising clients to adjust menu protein and produce choices and portion sizes . Keep an open line of communication with fresh food distributors to reduce supply issues, especially for large events.
Disposables: Demand remains robust, but the supply chain disruptions have stabilized. The to-go packaging area continues to receive a lot of attention. Your Avendra representative can help you find the right manufacturer for your to-go containers and disposables.
Smallwares and equipment: While prices have been fairly stable, we recommend planning purchases with an extended lead time to avoid any service disruptions caused by an increase in capital equipment demand.
Administrative and office supply: Prices are expected to increase moderately, we are recommending our clients institute controls on office supply orders.
Request a copy of the full 2024 Cost Outlook Report
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