Please find below a video from Daniel - Sessions' Supply Chain Manager - providing context regarding the upcoming pricing changes across the Sessions supply chain...
Please press the subtitles button in the bottom-right corner for subtitles!
Reminder on the recent changes to the beef mince and price reductions in other core products are below alongside more details on the changes Daniel is talking about...
Cost to Serve Increase
As communicated over the last couple of weeks we’ve seen the cost of goods continue to increase across all suppliers with much of the impact a result of the October 2024 budget announcements which will all take effect from April 1st. Aside from the Beef Mince price increasing 6.6% last week, we’re going to see some more movement in the market over the next couple of weeks impacted by the budget announcements.
There were some substantial increases to the national insurance rates as well as a rise in living wages that have resulted in average staff costs for a full time worker in hospitality increasing almost £2,400 per year. This impacts the whole value chain including wholesalers like Bidfood and Brakes, grocery stores like Tescos and of course your restaurants and anyone else who operates in a relatively labour intensive industry like hospitality.
For this reason, our primary supplier Bidfood has had to increase a number of prices by a flat 0.7% from March 1st and we will likely see an increase on our chicken breasts and chicken tenders over the next several weeks too - we will keep you posted when we hear more.
Rest assured we’re doing everything we can to maintain competitive pricing and have actually been able to offset most of these increases with some significant price drops on items like gherkins (-27%) burger cheese (-14%) and a number of sauces and other lines (1-17%).
Therefore, the impact of the beef price and cost to serve have only increased average COGs by +0.33%. We are constantly in negotiations with our wholesalers and where we can, will continue to pass these savings directly on to you.