Supply Chain Management In the Restaurant Industry

Abstract

Rising food inflation presents significant challenges for the restaurant industry, especially in the aftermath of the pandemic. This research explores the implications of food inflation on profitability and menu diversity, revealing its detrimental effects on customer satisfaction and competitive advantage. To effectively address these challenges, supply chain management (SCM) emerges as a vital strategy, emphasizing its role in maintaining product quality, controlling costs, and enhancing operational efficiency. The paper delves into various SCM strategies, such as managing supplier relationships and optimizing inventory through techniques like Just-in-Time (JIT) and FIFO. These strategies not only reduce waste but also contribute to overall operational effectiveness, allowing restaurants to adapt to fluctuating market conditions. The importance of customer satisfaction is further highlighted, demonstrating how robust SCM practices enable restaurants to meet evolving customer expectations through consistent food quality and availability. Ultimately, by leveraging demand forecasting and cultivating a diversified supplier base, restaurants can strengthen customer loyalty and gain a competitive edge in an increasingly demanding market landscape. This interconnected approach underscores the critical role of effective SCM in navigating the complexities of food inflation while ensuring long-term success in the restaurant industry.