Most foodservice businesses get stuck because they’re focused on the wrong problems. They’re busy trying to fix what’s on the surface, but the real issues are buried deeper. If you’re not looking ahead, you’re already falling behind.
Today, we will list the biggest challenges in foodservice businesses eating away at your profits. Let’s tackle them head-on and figure out how to stay ahead of your competitors.
Here are the toughest challenges in the foodservice industry that can make the difference between thriving and merely surviving.
If you don’t have customers, your foodservice business can’t sustain. It’s as simple as that.
But here’s the problem: with 964,000 restaurants in the U.S. (according to the Brizo database), how do you know which ones to target? Trying to reach everyone is a surefire way to waste time and resources.
That’s where Brizo comes in. Brizo FoodMetrics is a powerful tool designed to help food manufacturers, distributors, and foodservice businesses zero in on the right prospects. Think of it as your guide through the crowded landscape of potential customers.
Instead of relying on traditional contact lists and outdated surveys, Brizo gives you the insights you need to target the businesses that are most likely to convert. You can filter through the noise and find the restaurants that match your ideal customer profile.
With almost 1 in 10 people falling ill after eating contaminated food, the stakes are incredibly high for food distributors. As intermediaries between producers and retailers, the safety of the food they handle directly impacts consumer health.
There are over 250 foodborne diseases, which can be traced back to three categories of hazards: biological, chemical, or physical. Managing these risks requires more than good intentions; it demands rigorous protocols.
Foodservice businesses can use tools like Food Safety Checklists and Posters to reinforce these protocols, helping to prevent cross-contact between different types of food, particularly those with allergens or raw ingredients.
Food waste is often driven by a combination of poor planning, inadequate infrastructure, and economic challenges.
Inadequate handling and poor transportation conditions can accelerate the deterioration of fruits and vegetables. For instance, mixing products that require different temperatures in the same truck or mishandling them during loading and unloading can severely compromise their quality.
Cheap or inappropriate packaging materials, like fiber bags or wooden boxes, can damage produce during transit or storage. Many distributors also operate in facilities that aren’t equipped to store food properly. These facilities might have poor ventilation, inadequate lighting, or even store produce directly on the floor, all of which reduce the shelf life of the food.
Even when distributors do everything right, the natural deterioration of fruits and vegetables is inevitable. To minimize losses, some distributors partner with retailers to move excess inventory quickly, adjusting prices as the produce approaches expiration.
Rent, wages, ingredients—they’re all going up for foodservice businesses. And the profit? It feels like it’s shrinking by the day. We’re in a time where global food prices are expected to stay higher for the next decade.
Even though we’ve made strides since the pandemic, a lot of foodservice businesses haven’t fully recovered. The lingering effects of supply chain issues, labor shortages, and inflation are making it tough for businesses to keep their costs in check and their margins healthy.
Here are some strategies that can help you deal with these rising costs:
Compliance in the foodservice industry is non-negotiable. The landscape of regulations is constantly evolving, and staying on top of these standards is crucial for avoiding hefty fines, legal issues, and damage to your reputation.
Here are some key compliance standards that foodservice businesses may need to follow:
Market saturation doesn’t have to be a bad word. It just means there’s much opportunity if you know how to play your cards right.
In a saturated market, it’s not about being the loudest but the smartest. The food industry is bustling with innovation, and that’s a good thing. It pushes businesses to differentiate themselves and find that unique value proposition that sets them apart from the competition.
That’s where foodservice businesses can use Brizo FoodMetrics to uncover unique market data on a single platform. With Brizo’s restaurant database, you can analyze everything from technology adoption to ingredients used by food establishments. With these actionable insights, businesses can innovate and stand out in a crowded space.
Labor shortages are hitting the foodservice industry hard, and it’s no surprise when you consider the numbers.
According to a recent study, the average wage for workers in this industry is just $10 per hour. That’s significantly low, especially when you factor in the demands and pressures of the job. It’s a tough sell for attracting and retaining talent, making the labor shortage more acute.
But instead of getting stuck on the problem, let’s focus on solutions. Because, honestly, there’s a lot you can do to turn this around.
Employees today are looking for more than just a job—they want growth opportunities, a positive work environment, and a sense of purpose.
Consumer behavior and tastes evolve over time, pushing restaurants to introduce new dishes to keep up with market trends. This ongoing evolution means that foodservice businesses must be adaptable to stay relevant.
Brizo steps in here by providing critical insights that help foodservice businesses identify and segment customers based on specific needs. With these insights, businesses can close 50% more customers by targeting the right audience at the right time.
As Dave Jarrett, Head of U.S. Sales at PreciTaste, puts it, “You can’t just Google’ New York restaurant brands with 5-15 locations.” But with Brizo, you can easily find that information and more to make data-driven decisions.
The challenges we talked about today aren’t not going anywhere. But with the right tools, like Brizo FoodMetrics, you don’t have to just react to problems—you can actually get ahead of them.
Imagine having the power to see exactly where your best opportunities are, who your real customers should be, and how to make smarter moves in your business. That’s what Brizo brings to the table. Get a free trial and see yourself today!
