In a market influenced by new tariffs and changing policies, implementing effective supply chain cost management and cost-saving strategies can feel like navigating a complex maze. Prices for essential items, from eggs to cleaning supplies, fluctuate frequently, making any type of purchasing a challenging endeavor. 

We recently hosted the summer/fall “Cost Outlook” webinar where Entegra experts explored key issues impacting market volatility. Below are some critical takeaways and actionable cost-saving strategies to assist you in controlling costs while improving profit margins through effective supply chain cost management. We are actively working to mitigate the impact of pricing changes through various tools and reports, available on Entegra PurchasingIQ, a client portal, which includes a monthly inflation report and other commodity reporting. 

Navigating non-food supply chain costs 

There are both challenges and opportunities when it comes to managing costs associated with non-food items. 

• Amenities and tariffs: Many amenities, including shampoos, soaps and lotions, are frequently imported, and new tariffs can raise their costs. Jeffrey Simmons, Entegra’s VP of Supply Management for Hospitality, advises considering domestically manufactured products. Transitioning to American-made amenities can lead to significant savings by simplifying logistics and reducing freight expenses, crucial for effective supply chain cost management. These options can cut lead times, ensure high quality, and the cost differential is much less than in previous years. Additionally, suppliers are watching tariff developments and may pre-emptively pull in inventory to mitigate price increases, as seen with shrimp.
• A softer cotton market: The cotton market has remained unexpectedly stable over the last two years, providing welcome relief for businesses reliant on cotton products like linens and towels, aiding in cost-savings.
• The rise of sustainable palm oil: As demand for sustainably sourced palm oil increases, manufacturers are adjusting accordingly. This trend is vital to monitor, as it can influence pricing and availability across various products, including cleaning supplies and amenities.
• Strategic planning for capital investments: Strategic planning for operational and capital budgeting is crucial for managing time and money associated with any non-food purchase. This process allows for flexibility, contingency and strong supplier commitments that can lead to cost savings.
• Labor and staffing review: Reviewing labor and staffing to understand the right mix between outsourced services and internal teams is essential. Labor modeling, which involves understanding peak and drop periods to adjust staff accordingly, is a simple formula that can help guide managers in optimizing staffing levels. Reducing labor costs can be a significant margin booster. 

The volatility of eggs 

Eggs are a kitchen essential, yet their prices are unstable. Dr. Henry Zerby, VP of Supply Management for Food at Entegra, noted that our national flock is still recovering, and as of June 25, 2025, is about 5% lower than previous levels. 

The primary concern is the pathogenic Avian flu, which remains prevalent. While improvements in biosecurity have been made, continued price increases are anticipated. This underscores the need for businesses to remain agile and prepared for potential cost fluctuations as part of their supply chain cost management and cost-saving strategies approach. 

Smart cost management strategies in foodservice 

In the kitchen, implementing smart supply chain cost management and cost-saving strategies can yield substantial benefits without compromising quality. Chef John Csukor, Entegra’s VP of Culinary, shares these pro tips:

• Adjusting to smaller portions: Balancing portion sizes can significantly impact your bottom line. The goal is to find a sweet spot between profitability and customer perception; slight adjustments in portion size may go unnoticed by guests yet yield substantial savings over time, enhancing your efforts in cost-saving strategies. Substitution is an option, but adjustments should ensure value is not perceived to be reduced by customers.
• Giving frozen fish a second look: If you've been hesitant about frozen fish, now is the time to reconsider. Suppliers today offer high-quality frozen options that are often more cost-effective than fresh ones. This can help maintain menu consistency while avoiding price swings, which is crucial for cost management.
• Explore alternative beef cuts: Avoid getting locked into high-priced beef cuts. Chefs recognize that cuts like skirt and flat-iron steaks are flavorful, versatile and significantly more affordable. Incorporating these into your menu can deliver high-quality options to your customers while keeping costs in check.
• Waste awareness and reduction: Understanding and controlling margins through waste awareness is crucial. Programs like Leanpath, a remarkable visualization program that weighs before and after exercises of prep, can create a mental path towards reducing waste. Reducing waste directly contributes to profitability.
• Menu innovation: It is an important time to continue innovating your menu, especially when pricing is a factor.
• Mitigating tomato tariffs: For specific challenges like the anti-dumping duty on tomatoes from Mexico, which went into effect on July 14, 2025, operators should be prepared. Supply management teams are proactively adjusting supplies to domestic producers to mitigate these impacts. Operators can also consider substitutions. 

Interested in continuing to explore these essential topics? Watch the full webinar replay to gain deeper insights from our experts on supply chain cost management and cost-saving strategies. 

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