Cheese prices in the UK are falling, creating a promising scenario for the food service industry. According to the AHDB Dairy Market Outlook, farmgate milk prices declined significantly in 2023, stabilising around 36-37 pence per litre by mid-year, with global cheese prices following this trend. A Rabobank report highlighted a 3.8% drop in global cheese prices in late 2023 due to higher milk supply and weaker export demand from major markets like China. This presents an opportunity for restaurants, cafes, and catering services to reduce costs, experiment with menu offerings, and remain competitive in a challenging economic landscape.
The Current Cheese Market in the UK
The UK’s cheese market is experiencing noticeable shifts:
- Trends: The prices of traditional dairy-based cheeses have stabilised or dropped due to surplus production and changing consumption habits.
- Key Drivers: Rising milk production, fluctuating demand post-pandemic, and slower exports to the EU have all contributed to the price drop.
- Popular Cheeses: Cheddar and mozzarella, staples for restaurants, have become more affordable cheese options for food businesses, with wholesale prices reflecting reductions. Mozzarella is ideal for pizzas due to its creamy texture and excellent melting quality, while cheddar adds a rich, tangy flavour to sandwiches, burgers, and baked dishes. To diversify your menu, consider premium or less commonly used options like pecorino, a sharp cheese perfect for pasta dishes, or feta, which adds a tangy, creamy touch to salads and wraps. Halloumi, known for its firm texture and ability to grill without melting, is an excellent addition for vegetarian dishes or as a unique topping for burgers. Offering a variety of cheeses can help restaurants stand out and cater to a wider range of customer preferences.
- For food businesses, understanding these trends is essential to capitalising on cost-saving opportunities.
Benefits of Lower Cheese Prices for Food Businesses
- Improved Profit Margins: With cheese being a key ingredient in many dishes, reduced costs allow businesses to increase profitability. For example, a 10% reduction in cheddar prices can significantly lower overheads for pizzerias and cafes.
- Opportunity for Bulk Purchases: Wholesalers often offer better deals for bulk buyers so there are many benefits of bulk cheese buying. By purchasing in larger quantities, businesses can save on unit costs while ensuring stock availability.
- Menu Innovation: New, cheese-rich dishes like gourmet mac and cheese, loaded cheese fries, and seasonal cheese boards can be added to menus.
- Competitive Pricing: Lower raw material costs allow cafes to offer affordable meals without compromising on flavour or quality.
Creative Ways to Leverage Cheaper Cheese
Restaurants and cafes can use falling cheese prices to reinvigorate their offerings:
- Introduce Cheese-Based Dishes: Examples include loaded nachos, artisan pizzas, and baked camembert platters, which are sure to attract cheese enthusiasts.
- Seasonal Promotions: Campaigns like “Cheese Lovers’ Month” or holiday-themed cheese platters can boost sales and customer interest.
- Enhance Existing Dishes: Replace standard cheeses with premium varieties to enhance flavours. For example, using Gruyère in gratins or burrata in salads.
- Collaboration with Local Wholesalers: Partnering with UK-based cheese wholesalers for exclusive deals can also create brand differentiation.
Importance of Partnering with a Trusted Wholesaler
A reliable wholesaler plays a pivotal role in maintaining consistent supply and quality:
- Bulk Discounts: Trusted wholesalers often offer discounts on large orders, enabling food businesses to reduce procurement costs.
- Timely Deliveries: Ensure steady stock levels by working with wholesalers who offer efficient logistics.
- Product Variety: Access to a wide range of cheeses ensures flexibility in crafting unique menus.
- Market Insights: Many wholesalers provide valuable updates on price trends and industry forecasts, helping businesses plan better
Tips for Making the Most of the Cheese Price Drop
To maximise benefits:
- Monitor Trends Regularly: Subscribe to updates from wholesalers or market analysts to stay informed on cheese pricing.
- Invest in Proper Storage: Use commercial refrigeration systems to extend cheese shelf life.
- Train Staff: Educate employees on proper cheese handling and portion control to minimise waste.
- Promote Cheese-Based Specials: Highlight dishes like cheesy garlic bread or quattro formaggi pizza on social media to draw in customers.
Case Study
A small café in Manchester leveraged reduced mozzarella prices to create a new line of artisan pizzas. By sourcing bulk cheese from a trusted UK wholesaler, they cut costs by 15%, introduced innovative flavours, and saw a 20% rise in customer visits over three months. Promotions like a “Buy One, Get One Pizza Free” deal during a cheese-themed week further boosted sales.
Read More: Types of Cheese Used in Pizza
Conclusion
The decline in cheese prices presents a golden opportunity for UK restaurants and cafes. By adapting menus, managing costs, and working with reliable wholesalers, businesses can enhance their offerings and maximise profits.
Don’t let this golden opportunity slip away! The drop in cheese prices can transform your restaurant or cafe’s profitability and help you attract more customers. Partner with a trusted wholesaler like Pentagon Food Group, known for providing top-quality cheese at competitive prices.
Contact Pentagon Food Group today to explore their wide selection of cheeses, enjoy bulk discounts, and ensure reliable supply for your business. Act now to secure the best deals and enhance your menu offerings. Visit Pentagon Food Group or call to learn more about their latest offers!
