Running a restaurant in 2025? You’re not alone—it’s tough out there.
Food prices keep climbing, supply chains are shaky, and finding reliable staff feels like a never-ending challenge. Even the most experienced folks in the industry are feeling the pressure.
The good news is you have options.
For chefs, restaurant owners, and anyone in hospitality, success now means staying sharp, thinking fast, and working smarter. And the silver lining? The wholesale food game is changing—for the better. There are smarter ways to cut costs without sacrificing quality.
So, how do you stay ahead of the curve?
Let’s examine the trends, strategies, and fresh solutions that can help your business not just survive but thrive.
The Impact of Rising Food Costs on the Hospitality Industry
The food industry hoped 2025 would be a comeback—but it’s turning out to be one of the toughest years yet.
Rising costs, new rules, and worker shortages are all pushing food prices way up. That means higher operating costs and slimmer profit margins for restaurants, food businesses, and hotel restaurant supply operations alike. No wonder so many owners are scrambling to stay in the game.
Raising menu prices is risky, as diners are more price-conscious than ever. The better move? Get creative. Adjust your supply chain, refresh your menu, and stay flexible to ride out the storm.
How Wholesale Restaurant Supply Chains Are Adapting
Wholesale supply chains are feeling the heat right now.
Food distributors are working hard to keep up with late shipments, price jumps, and other surprises. It’s no longer just about finding ingredients—it’s about getting them on time and at a price that protects your profit.
But here’s the upside: you’re not on your own.
Wholesale food suppliers are stepping up with smart, flexible solutions. Here’s how:
- Expanding their reach: Wholesalers are teaming up locally and cutting imports to keep prices steady. That’s why more restaurants are searching for restaurant supplies near me for faster, more reliable options.
- Using smarter tech: AI and data tools help them plan ahead, stay compliant, and manage inventory better.
- Cutting waste: Tracking systems and analytics reduce spoilage and overstocking—less waste for them, more stability for you.
Food costs in New York City are climbing faster than the national average. Grocery prices in NYC rose 6.5% last year, driven by supply chain delays and inflation. For restaurants buying in bulk, even small increases hit hard. That’s why more and more NYC restaurants are turning to local and wholesale suppliers to keep costs in check.
At Fadaro, we’ve seen a 22% increase in restaurants switching to local sourcing through our platform. It’s proof that flexibility and local thinking make a real difference.
To stay competitive, you need a smarter supply chain. Partnering with reliable food distributors helps you get better prices, steady deliveries, and quality ingredients.
Cost-Saving Strategies for Restaurants
Even with significant improvements in supply chains, restaurants still need to manage costs.
Hotel kitchens must meet guest expectations, serve large groups, maintain quality, and stay on budget.
The good news? There are clever ways to stay profitable without cutting corners. Here are a few strategies:
1. Optimize Inventory Management
Want to save money? Start with smarter inventory management.
Keeping tabs on your inventory in real-time and tracking usage trends helps reduce waste and leads to better buying decisions. This is one of the easiest ways to protect your margins without touching the menu.
These days, AI and machine learning are changing the game.
TouchBistro’s 2025 report says 35% of restaurants now use AI tools to make inventory management easier.
This tech shows you what’s in stock, what’s selling fast, and what to restock—so you stay ahead, not caught off guard.
Maximize Ingredient Use
Don’t toss leftovers—use them to save money. With a little planning, extra herbs, cooked veggies, or day-old bread can turn into soup, broth, croutons, or something new.
Use every part. Peels, stems, and bones can become pesto, broth, or stuffing. It’s a simple way to cut waste without losing flavor.
Use ingredients in more than one dish. Squash purée can go in a main, a soup, or a pasta sauce. Leftover meat can be used in tacos, bowls, or sandwiches.
Reduce Food Waste
U.S. restaurants throw out 22 to 33 billion pounds of food every year—that’s $25 billion worth of lost food. And since most restaurants don’t track their waste, experts believe the actual numbers could be even higher.
Wasting food hurts—especially with tight margins. Cutting waste isn’t just eco-friendly; it’s essential. Tracking scraps and reusing leftovers can lead to actual savings.
Food prices are rising, and sustainability matters more than ever. Cutting food waste helps you save money and run a greener business. Beyond inventory management, here are some key measures to consider:
- Train your employees: Show your kitchen staff how to manage portions, store food the right way, and get creative with trimmings.
- Track your waste: Use waste-tracking software or simple logs to identify patterns and pinpoint where most waste comes from. Tracking food waste can help restaurants save 2–6% on food costs.
- Redistribute surplus food: Partner with food banks, shelters, or apps to donate unsold, safe-to-eat meals.
- Compost: Compost what you can’t reuse. Many cities offer composting programs, and some restaurants do it in-house. It’s a smart way to cut waste and use resources better.
- Use leftovers: Get creative with surplus food.
Monitor Stock Levels
Running out of ingredients during a rush is the worst. Real-time stock tracking helps you avoid surprises, cut waste, and keep the kitchen running smoothly.
2. Source Cost-Effective Ingredients
You shouldn’t have to choose between great food and a healthy bottom line. With the right sourcing strategy, you can keep both:
- Choose one supplier you trust: It’s easier, saves money, and gives you access to everything you need. A good relationship with your supplier helps you get better deals and a steady flow of quality products.
- Use frozen and pre-portioned foods: Frozen and pre-portioned foods cost less and last longer, helping you cut waste and save money.
- Use premium ingredients strategically: Reserve high-end ingredients for dishes where they truly shine. Use specialty ingredients in a few standout dishes where you can charge a higher price.
- Use fruits and vegetables that are in season. They’re fresher, cost less, and make your menu more appealing without raising your budget.
3. Streamline the Menu
Too many menu items? Too many problems. A smaller menu saves money, streamlines the kitchen, and makes choices easier for guests. Keep it focused and let your top dishes stand out by:
- Eliminate low-profit items: Identify and let go of dishes with high-cost ingredients and low sales.
- Introduce rotating specials: Use surplus ingredients creatively in limited-time offerings. This reduces waste and keeps the menu fresh for customers.
- Keep ingredients consistent across dishes: Using the same ingredients in many dishes helps you waste less and spend less.
4. Be Mindful of Consumer Trends
Customer tastes are changing fast. Restaurants that adapt can stay profitable and control costs. As prices rise, diners want better value—updating your menu to match trends helps you save money and draw more customers.
Health-conscious and plant-based dishes
Health and well-being are at the forefront of consumer trends. Switching to plant-based dishes has been the most prevalent menu change in 2025, and the trend is here to stay.
More diners than ever are asking about the ingredients in their food. Health-conscious and plant-based options aren’t just trends, they’re becoming expectations.
Offering fresh, feel-good meals can build loyalty while keeping your food costs in check. This can look like plant-based dishes, allergen-free options, or local and sustainable produce.
Non-Alcoholic beverages
More millennials are drinking less alcohol, and non-alcoholic drink sales could grow 30% by 2026.
High-margin drinks like mocktails, cold brews, and infused waters are becoming menu must-haves. Health-conscious customers are also reaching for functional drinks like mushroom coffee and fermented options.
Takeout and delivery
Takeout and delivery are here to stay. Customers want food that’s fast, hot, and just as good as dining in. Build dishes that travel well to keep them satisfied and protect your margins.
Revenue-Boosting Strategies for Restaurants
Cutting costs is key—but growing revenue matters too. Catering and simple tech tools can boost efficiency and keep you competitive. Here’s how hospitality businesses are driving sales:
Expand Sales Channels
Touch Bistro says 37% of surveyed operators are adding new sales channels to increase revenue. Diversify your revenue by offering catering services, selling branded merchandise, or optimizing delivery and takeout operations.
Implement Smart Pricing
Encourage guests to add more to their order. Whether it’s a truffle upgrade, a more significant portion, or a limited-time special, they can’t resist.
Integrate Technology
Let AI and automation help you plan ahead, track inventory, and run smart promos. Tools like loyalty programs and digital ordering can help you sell more and spend less.
Stay Ahead of Rising Food Costs with Fadaro
With rising food prices in 2025, restaurants are rethinking their wholesale supply. Want to protect your profits without cutting quality? Focus on smarter inventory, cost-effective ingredients, and staying in tune with customer trends.
At Fadaro, we get it. We offer quality wholesale foods with easy, reliable ordering.
Costs are up, and diners expect more. The restaurants that adapt will thrive. With the right supply partner, you’re ready for anything.
Fadaros’ editorial team is dedicated to creating high-quality, insightful content that helps food businesses navigate the challenges of the wholesale industry. We aim to empower you with practical advice, expert insights, and resources tailored to your needs. By aligning with our brand’s mission of helping you grow and build a successful future, we aim to be a trusted partner every step of the way, ensuring your success remains our top priority.
