Inflation is hitting the Dutch hospitality industry hard. Rising product prices, higher personnel costs, and changing consumer behaviour are putting pressure on the revenue model of restaurants. Fresh produce suppliers are also noticing that their customers are buying differently. "Entrepreneurs are becoming more critical and are looking more consciously at where they source their products," says Ad Pollux of fruit and vegetable specialist Eurofresh in Venlo.
© Eurofresh
In a recent NRC article, star restaurants admitted they no longer dare to pass on price increases to their guests, fearing they will stay away. The result: Many are quitting altogether or adapting their concept to a more accessible formula. Ad recognises this trend across the entire hospitality sector. "It's not only top restaurants, but also eateries, cafeterias, and sushi shops that are facing this. The first requirement is always: buy competitively, but with quality. Active entrepreneurs split their purchasing: vegetables here, meat there, fish somewhere else. That takes a bit more effort, but ultimately pays off."
More creative cooking
According to Ad, good entrepreneurs actually become more creative in these circumstances. "I know one restaurateur who said: 'Then let's not put sole on the menu anymore, but another fish that I can also make something special out of.' The same goes for vegetables: you don't necessarily need to use artichokes at €1.40 each. You can make a beautiful dish with parsnips or beetroot just as well. You increasingly see chefs looking week by week at what is favourable and readily available, and building their menu around that."
He sees restaurants responding to this with shorter menus, fewer luxury extras, and more focus on simplicity and product quality. "Simplicity is returning a bit," says Ad. "Ready-made products were popular for a while, but that is now declining again. Cooking yourself and working smartly with seasonal vegetables saves costs and offers more flexibility."
Fluctuating prices
The fresh produce sector is a market that naturally fluctuates a lot, Ad emphasises. "Cauliflower can be shockingly expensive one week, and not nearly as expensive the next. The same goes for tomatoes or cucumbers. For the hospitality industry, that means being flexible. The entrepreneurs who are good at this have an advantage. Some come to us themselves, or send their chef, to see what's good and affordable. I think that's a healthy way of working."
Eurofresh actively supports customers in this. "If someone orders a product that is very expensive while a comparable alternative is available at a lower price, we always let the customer know. Then we just put in a case of the alternative. In the end, it's all about good products and service, without any fuss."
Trend towards plant-based
Another consequence of the high prices for meat and fish is the rise of vegetable-based dishes. Ad: "You increasingly see vegetables becoming the main ingredient rather than a side dish. You can easily build a whole dish around a simple beetroot or parsnip these days. We see this both in the Netherlands and just across the German border." For an AGF supplier, this is, of course, beneficial. "Let that growing demand continue," says Ad with a laugh.
So while inflation poses tough challenges for the hospitality industry, Ad also sees opportunities. "Every challenge brings opportunities. The hospitality industry is changing, and entrepreneurs need to move with it. Those who do so smartly can actually come out stronger."
For more information:
Ad Pollux
Eurofresh
Venrayseweg 112a
5928 RH Venlo
Tel: +31 (0)77 324 1111
[email protected]
www.eurofresh.nl
