As we look ahead to 2025, the only thing we can be sure of is that no one is sure what’s coming our way – and if they tell you they are, they’re lying! But at CORE Insights Group, our century of combined experience in the industry has taught us that it IS possible to prepare for the unexpected.

Overall, our advice as we enter 2025 is to be cautious, nimble and positioned sensibly to react as we gain more clarity over time. Avoid being overly speculative. Instead of focusing on forecasting, which is risky in an uncertain climate, rely on a strong sourcing strategy to carry you through.

Here are some simple dos and don’ts to guide you as you prepare to succeed in an uncertain environment – and remember the CORE team is always here to help!

Do:

  • Focus on a strong sourcing strategy – not speculation.
  • When it comes to domestic and near-shore consumable commodities and labor, ride the wave as inflation is passed through and relief comes in its wake.
  • When it comes to imports, focus on cost plus contracts with fixed annual costs.
  • Consider big supplier relationships rather than medium or small. They may be able to better protect costs in an inflationary environment and shelter you from the impact of currency shifts.
  • Align yourself with suppliers who are nimble, ideally have global production footprints and can move manufacturing reasonably quickly.
  • Leverage your procurement data to save costs. Advanced analytics can help you optimize your purchasing decisions, identify substitutes that reduce costs without compromising quality, and uncover opportunities for savings on existing items.
  • Take the opportunity to reset surcharges related to fuel or other energy costs.  Review your energy contracts for escalator/de-escalator clauses and look over past price changes from suppliers as you plan for renegotiations later in the year.
  • Contact CORE Insights Group to support you in reviewing – and renegotiating – your contracts and getting the right sourcing strategy in place!

Don’t:

  • Overexpose yourself to speculative, long-term commitments. Remember, if inflation explodes this is passed through via cost increases to the end customer.
  • Rely solely on legacy tech systems. In 2025, investing in emerging technologies will help you optimize your operations, reduce costs and elevate the guest experience, ensuring you stay competitive in a rapidly evolving market.
  • Try to do it all on your own! Our experienced team at CORE Insights Group can help you put a strategy in place to successfully manage whatever changes come your way.