1851

On Thursday, Bloomberg published a story by agricultural reporter <a href="https://www.linkedin.com/in/megan-durisin-5717a81b?utm_source=1851franchise.com&utm_medium=article&utm_campaign=declining-food-prices-may-soon-bring-relief-to-food-service-franchises-2716365" target="_blank" rel="nofollow">Megan Durisin</a> on<a href="https://www.bloomberg.com/news/videos/2021-08-05/global-food-prices-fall-in-sign-of-relief-for-consumers-video?utm_source=1851franchise.com&utm_medium=article&utm_campaign=declining-food-prices-may-soon-bring-relief-to-food-service-franchises-2716365" target="_blank" rel="nofollow"> the global food price index,</a> which has gradually declined since it skyrocketed earlier this year. While the index is still high, the downward trend suggests financial help is on the way for food service businesses.The food cost index, released by the UN’s Food and Agriculture Organization, measures the monthly changes in the cost of cereals, oilseeds, dairy, meat and sugar. In early summer, the<a href="http://www.fao.org/news/story/en/item/1403339/icode/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=declining-food-prices-may-soon-bring-relief-to-food-service-franchises-2716365" target="_blank" rel="nofollow"> FAO detailed</a> how food prices in May were “4.8 percent higher than in April and 39.7 percent higher than in May 2020.” That downward trend is expected to continue as the northern hemisphere approaches a full harvesting season this fall.Earlier this year, the spike in worldwide food costs presented challenges for restaurants, restaurant suppliers and grocery chains alike. The declining index will give those businesses the chance to revert back to some operations that were once standard, and that could do wonders for franchises that have struggled to adapt to a pandemic.The supply chain crisis may offset some of that help for consumers and franchises, however. For products like rice, the world is seeing a “trade slowdown, partially due to the spike in freight and shipping costs around the world,” Durisin said.&nbsp;Some companies may be less willing to purchase food with expensive shipping, so the current prices of global trade have forced many food suppliers to sit on an abundant supply and lower their food prices as a hopeful purchasing incentive. Lower food costs will at least help mitigate some of the additional shipping expenses.Locally sourced foods could have extreme benefits for franchises to navigate a challenging supply chain, as local shipping expenses are far lower.But a local supply chain may not be feasible for many brands. National food service franchises strive for consistency across each unit, and sourcing local foods may create inconsistencies.Declining food prices will of course benefit consumers as well. Shipping issues aside, the trend suggests the global food trade may be recovering from pandemic-related shutdowns. Food service franchisees could see a big spike in productivity once lower food prices are matched with an efficient supply service.

Declining Food Prices May Soon Bring Relief to Food Service Franchises

1851 Franchise

Restaurant brands struggling with expensive supply chains may soon benefit from a steadily declining global food price index.

declining-food-prices-may-soon-bring-relief-to-food-service-franchises

Layne's Chicken Fingers

image of laynes chicken finger restaurant with 4 hands holding cups in the air to celebrate 

 Layne’s Chicken Fingers Crosses Mid-Year Mark With 11 New Restaurants Opened, Including the First Time the Brand has Seen Two Openings on the Same Day on July 14

laynes-chicken-franchise-growth-2025

HomeTeam Inspection Service

image of an employee from home team checking an outlet with an ipad

HomeTeam Inspection Service Franchise Owners Diversify Income With Multi-Service Model

hometeam-inspection-service-revenue-streams

Right at Home

image of jennifer selden right at home franchisee for a webinar with nick powills

Right at Home Franchise Owner Jennifer Selden To Share Franchise Journey, Sparked by Personal Care Experiences

jennifer-selden-right-at-home-franchise-journey-webinar

Paris Baguette Canada

image of a paris baguette bakery cafe latte with delicious food, croissants, and pastries

What Paris Baguette Franchisees Have To Say About Their Experiences

paris-baguette-franchise-canada-eric-chang

image of right at home franchisee gregory brewer for a webinar with nick powills

Gregory Brewer To Share 20-Year Franchise Journey With Right at Home in Upcoming Webinar

gregory-brewer-right-at-home-franchise-winston-salem-webinar

Buying a Franchise Masterclass

 Franchise Opportunities

Get Support Buying a Franchise

How to Buy a Franchise White Paper

How to Buy a Franchise

How to Sell Franchises

How to Grow a Franchise

Find a Franchise Supplier

1851 Franchise Opportunities

Franchisor News

Franchisor Power Rankings

FranCamp Mastermind Summit

Franchise Development Website Builder

Franchise Resources

What ALEC-Laffer's Report Means for Franchising

Website Awards

Power Rankings

About 1851

Advertise on 1851

Contact 1851 Editorial

Terms of Use

1851 Login

GROWTH CLUB LOGIN

facebook

instagram

twitter

linkedin

youtube

AI Is Reshaping Franchising: $100 Billion Valuations and Hyper-Localized Advertising

ai-is-reshaping-franchising-100-billion-valuations-and-hyper-localized-advertising

Mega Franchisee Sizzling Platter Acquired by Bain Capital

mega-franchisee-sizzling-platter-acquired-by-bain-capital

Wendy's CEO Kirk Tanner Steps Down - Breaking News - 1851 Franchise

Wendy’s CEO Kirk Tanner Steps Down Amid Challenges, Leaving Franchisees Facing Uncertainty

wendys-ceo-transition-kirk-tanner-franchisee-uncertainty

"Come in, We're OPEN" sign against abstract background

Small Business Optimism Dips, Raising Concerns for Franchise Owners

small-business-optimism-dips-raising-concerns-for-franchise-owners

Photo of Roof Scientist truck and trailer

Roof Scientist Expands Into Northern Indianapolis as Entrepreneur Dale Speckman Launches New Business in Fishers

roof-scientist-expands-into-northern-indianapolis

Hooters Leans Into Franchising With Closure of 30 Company-Owned Stores - Agg - 1851 Franchise

Hooters Leans Into Franchising With Closure of 30 Company-Owned Stores

hooters-franchise-model-company-owned-closures

Technomic Releases Annual Ranking of the Top 15 Fast-Food Chains in the U.S.

technomic-releases-annual-ranking-of-the-top-15-fast-food-chains-in-the-us

Blending Tech, Hospitality and Health Care: How Three Women From Different Worlds Came Together to Build a Paris Baguette Franchise

paris-baguette-franchise-flower-mound-texas

The Ultimate Guide to Selling Franchises: How To Create a Strong Incentive

how-to-build-strong-incentives-to-attract-prospective-franchisees

Hely and Hiral Patel Bring Their Longtime Dream to Life With The Brass Tap

brass-tap-franchise-pasadena-maryland-hely-hiral-patel

Sola Salons Franchisee Grows Salon Freedom Into a Multi-State Powerhouse 

sola-salons-franchisee-grows-salon-freedom-into-a-multi-state-powerhouse

Declining Food Prices May Soon Bring Relief to Food Service Franchises

MORE STORIES LIKE THIS