{"id":2353,"date":"2022-12-19T12:32:00","date_gmt":"2022-12-19T12:32:00","guid":{"rendered":"https:\/\/mapalstg.wpengine.com\/en\/?post_type=resource&p=2353"},"modified":"2026-08-26T12:55:13","modified_gmt":"2026-08-26T11:55:13","slug":"global-inflation-rates-are-rising-heres-how-it-might-affect-your-bakery-business-and-what-you-can-do-about-it","status":"publish","type":"resource","link":"https:\/\/mapal-os.com\/en\/resources\/articles\/global-inflation-rates-are-rising-heres-how-it-might-affect-your-bakery-business-and-what-you-can-do-about-it\/","title":{"rendered":"How rising food costs impact your cafe or bakery business"},"content":{"rendered":"\n
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You might have to be living under a rock to have avoided hearing anything about the recent rising food costs. Thanks to a variety of factors like Russia\u2019s war on Ukraine and post-pandemic inflation, global prices have been on the rise \u2014 and there\u2019s no sign it’ll stop just yet.<\/p>\n\n\n\n

But what do rising food costs mean for me?<\/h2>\n\n\n\n

Rising prices globally means that\u00a0everything is ultimately going to cost more.<\/strong>\u00a0You\u2019ve probably already noticed this: the amount of money that went into making one cinnamon bun in January this year is probably noticeably different from how much it\u2019s costing you now.<\/p>\n\n\n\n

Costs on transport, packaging, and raw ingredients have been on the rise since the pandemic, and the\u00a0global food crisis<\/a>\u00a0spurred on by Russia\u2019s invasion of Ukraine is only prolonging these rising costs.<\/p>\n\n\n\n

This also makes it incredibly important for you as a business to\u00a0ensure that<\/strong>\u00a0you\u2019re not losing out on sunken costs from food waste at the end of the day<\/strong>. If you\u2019re seeing that you have a large number of unsold croissants at closing, you are now actually losing\u00a0even more\u00a0<\/i>on those croissants than you did in the previous years.<\/p>\n\n\n\n

>> See how Savvie by Mapal helps your business prevent money, time, and food wasted in your store with AI <<<\/a><\/p>\n\n\n\n

Why should I worry about rising food costs?<\/h2>\n\n\n\n

All kinds of businesses – bis and small – need to be aware that these are precarious times, and that it\u2019s\u00a0now more important than ever to keep a keen eye on your margins<\/strong>. Since your overhead (costs) is rising, your profitability is likely going to be more difficult to maintain.<\/p>\n\n\n\n

More costs = less profit
Less profit =\u2026we all know what that means!<\/strong><\/p>\n\n\n\n

Larger businesses like Starbucks or Costa Coffee have their own in-house finance and data teams that can help them calculate financial risks to stay afloat in hard times. Smaller businesses don’t have these kind of resources.<\/p>\n\n\n\n

Numbers? I\u2019m here to maintain my shop and keep my customers happy.<\/h2>\n\n\n\n

We totally get that. The key is to start incorporating little changes to your routine. Just like going to the gym, the hardest part is getting started (we\u2019re making this comparison from personal experience). For a small business, it\u2019s incredibly important to start making data-driven decisions, rather than going only by gut instinct. We\u2019ll show you how:<\/p>\n\n\n\n

Step 1: Get to know your numbers<\/strong><\/h3>\n\n\n\n

Get to know the hows, whys, and wheres of your numbers. More often than not, you already have your numbers stored somewhere, whether that\u2019s from your POS system or in your sales log. Identify the costs of your raw materials, get to know your biggest cost-drivers, and understand your best-selling products.<\/p>\n\n\n\n

Log these down somewhere, we suggest starting on a digital spreadsheet like Google Sheets or Excel. If you have budget for an accounting tool, we suggest something like Fiken (Norway), Visma (Norway), or Quickbooks. Of course you can also rely on traditional pen-and-paper methods, but it will be more difficult to do future reporting and you\u2019ll likely spend more time sifting through your numbers manually.<\/p>\n\n\n\n

Step 2: Understand key financial metrics in your business<\/strong><\/h3>\n\n\n\n

Key financial metrics to understand within your business<\/p>\n\n\n\n