BRAZIL: Food price hikes showing knock-on effect on foodservice

The rise in Brazilian food prices above the average rate of inflation is having an inevitable knock-on effect on foodservice suppliers. According to Brazilian publication Gazeta Mercantil , industrial restaurants such as canteens and hospital catering services are trying to renegotiate contracts with suppliers. Restaurants are suffering price pressures which they do not want to pass on to consumers as they fear they will lose trade, so they are asking suppliers to meet them halfway to prevent a downturn in overall trade, to the detriment of all concerned.

July 5, 2001

The rise in Brazilian food prices above the average rate of inflation is having an inevitable knock-on effect on foodservice suppliers. According to Brazilian publication Gazeta Mercantil, industrial restaurants such as canteens and hospital catering services are trying to renegotiate contracts with suppliers. Restaurants are suffering price pressures which they do not want to pass on to consumers as they fear they will lose trade, so they are asking suppliers to meet them halfway to prevent a downturn in overall trade, to the detriment of all concerned.

Much of the activity is based in Sao Paulo, as some 450 of the 2000 companies which make up the Brazilian Industrial Restaurant Association (Aberc) are concentrated in Sao Paulo.