Price increases at 3663

By Gurjit Degun

- Last updated on GMT

Related tags: Cost

Food-led pubs are set for more doom and gloom over food prices, as foodservice company 3663 has confirmed that it will increase the cost of 35% of its products this month.

It comes after the Publican’s Morning Advertiser reported only two weeks ago that food-led pubs are having to explore different menu options and cooking techniques in a bid to keep costs down, as food inflation reaches 20% on some items.

3663 said the hike, which is its first since May 2008, is down to the high levels of inflation and the rising costs of fuel, transport and utilities. The firm added that prices for 66 of its top 100 volume lines have been held, and businesses should look at alternative menu options to combat the price rises.

The announcement is part of 3663’s quarterly price list review, and includes some
of its non-food products as well as frozen, chilled and ambient.

3663 group commercial director Ian Crawford said: “Unfortunately all businesses have continued to experience the current high levels of inflation impacting significantly on the cost to serve.

“Over the past few years we have worked hard to create greater levels of efficiency and as a consequence have avoided the need for a general increase.

“However, due to the significant nature of the rising costs of fuel, transport and utilities we have had to review our current pricing.

“Our sales teams are fully briefed to guide customers through the detail of the increase and equipped with a range of operational cost mitigation options to lessen the impact of any change.

“We will explore ways of optimising basket selection, alternative menu options and practical catering advice, and will ensure that customers continue to be supported by exclusive innovative and industry-leading price promotions.”

However, last week the Food Price Index, from the UN Food and Agriculture Organization, said that world food prices broadly stabilised last month, although they remain just below the record high.

Related topics: Professional Services & Utilities

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