The UK hospitality market continues to evolve under a mix of cost pressures, global disruption and changing consumer expectations. Protein, produce and beverages are all experiencing varying levels of volatility, making it harder to maintain consistent margins.

In response, operators should be increasing their focus on procurement control, flexible menu design and tighter operations to stay competitive.

Our latest quarterly trends report explores the key challenges likely to shape purchasing decisions in the months ahead. Including, freight disruption and labour pressures to supply shortages and climate-related impacts.
 

Why are protein costs still under pressure?

Protein remains one of the most volatile areas of hospitality spend, particularly across beef and lamb.

UK beef production is forecast to decline by 1.3% year on year, while lamb pricing remains elevated following a 40% drop in Australian flock numbers after climate-related challenges.

These conditions can make it harder to maintain consistent margins on protein-led dishes. In response, some operators may choose to review menu balance or adjust their reliance on higher-cost cuts during peak pricing periods.
 

What is happening in poultry and dairy markets?

Poultry pricing continues to be influenced by factors such as Avian Influenza and evolving welfare requirements, with whole bird costs increasing between 5% and 10%.

Dairy markets, by contrast, are beginning to stabilise after earlier volatility. However, this does not always translate into immediate cost relief at site level.

For many operators, particularly in hotel and catering environments, breakfast service can generate significant levels of dairy and egg waste. This is prompting a shift in focus towards improved forecasting, portion control and waste reduction, which can offer a more immediate route to margin protection than supplier pricing alone.
 

Why are seafood and produce categories remaining volatile?

Seafood and produce categories continue to be affected by external pressures including fuel costs, weather patterns and international logistics.

For example, North Sea cod quotas have been reduced by 44%, while tightening white fish supply across foodservice. Difficult growing conditions have impacted Spain’s orange harvest, as it is currently at its lowest level in 16 years.

In this environment, greater menu flexibility and a stronger emphasis on seasonal sourcing can help reduce exposure to sudden cost increases, while also supporting more efficient stock management.
 

What beverage trends are shaping hospitality?

Consumer preferences across beverage categories continues to evolve, particularly within beer, cider and moderation-led drinks.

Stout sales are up 21% year on year, while no-and-low alcohol now contributes more than 16% of licensed alcohol drink volume within fridges.

At the same time, coffee markets are beginning to soften following the sharp volatility seen during 2024 and 2025. Arabica pricing is down approximately 20% year on year as global supply conditions improve.

These shifts may create opportunities for operators to refine their drinks range in line with changing demand.
 

What procurement approaches can help protect margins?

Rather than relying solely on reacting to price changes, a more proactive and structured approach to procurement can help improve cost control.

This often includes:

• Reviewing supplier visibility more regularly
• Reducing operational waste
• Adapting menus around seasonal availability
• Improving portion consistency
• Monitoring dish profitability more closely

Taking a broader view across purchasing, preparation and service can help identify efficiencies that are not always visible through supplier pricing alone.
 

What should businesses prioritise as inflation continues?

Maintaining flexibility and visibility across operations is likely to remain important as market conditions continue to shift.

This may involve reviewing menus more frequently, strengthening forecasting processes and identifying areas where waste or inefficiency can be reduced.

Food inflation is no longer just a procurement issue, it increasingly influences menu strategy, operations and overall guest experience.
 

Explore the full report

If you’re reviewing your current procurement approach, a deeper understanding of category-level trends and operational impacts can help inform more effective decision-making.

Download the full UK Market Trends Quarterly Outlook for further insight and practical guidance.

Market Trends | Entegra Procurement Services