U.S. tariffs are putting “enormous pressure” on independent restaurants, food producers, and the entire food supply chain, according to Independent Restaurant Coalition (IRC) Executive Director Erika Polmar.
“Unless something changes, the entire food supply chain – from field to kitchen to table – is at risk,” she said in a recent update to the coalition’s members.
The 125 percent tariffs the U.S. recently placed on Chinese goods and the 10 percent tariffs set to take effect on other countries over the summer impacts not only food costs and availability but also the cost of necessary restaurant items such as ovens, dishwashers, cookware, glassware, and furniture, Polmar said.
"Even the packaging used for takeout [is] often imported and, with tariffs, now costs significantly more,” Polmar said. “These rising costs make it harder for new restaurants to open and for existing ones to make basic upgrades or even repair broken equipment.”
National Restaurant Association President and CEO Michelle Korsmo also expressed concerns about the impact of tariffs on the U.S. restaurant industry last month.
“Tariffs will hike food and packaging costs and add uncertainty to managing availability while pushing prices up for consumers,” Korsmo said. “Restaurant operators know consumers are very sensitive to costs and have kept menu price increases to 30 percent, while their food costs have gone up 40 percent in the last five years.”
Additionally, farmers are experiencing reduced market access …