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- How Extreme Weather Impacts Restaurants
The restaurant industry is always changing. But in recent years, one challenge has grown impossible to ignore: extreme weather. Floods, wildfires, and heat waves don’t just disrupt daily life they also disrupt supply chains and food costs. For restaurants, that means higher prices, fewer ingredients, and tighter margins.
According to Technomic, North America average just over five billion-dollar weather disasters each year between 1980 and 2010. By 2024, that number jumped to 27.
For operators, the impact is clear. Weather is no longer a rare disruption. It’s a recurring challenge that affects sales, procurement, and long-term planning.
When major storms or wildfires hit, restaurants often have to close their doors. Even when they stay open, customer traffic drops as people stay home. But the biggest challenge often happens behind the scenes in the supply chain.
Key ingredients are becoming harder to source consistently. Wheat, rice, tomatoes, peppers, coffee, and chocolate are all considered “at risk” because of changing climate conditions.
Prices rise, availability drops, and quality can change. For operators, that means unpredictable costs and menus that are harder to manage.
Restaurants already face rising labor costs, competitive markets, and guests who expect memorable dining experiences. Add extreme weather to the mix, and procurement becomes critical.
The right procurement strategy can:
This is where food GPOs (Group Purchasing Organizations) step in to help restaurants protect their bottom line.
A GPO combines the buying power of many restaurants to secure stronger contracts with suppliers. For members, this means better pricing, more stable supply, and a clear advantage during volatile times.
With a GPO, operators can:
For example, if flooding harms rice crops in one area, a GPO may have backup suppliers in other areas. That reduces risk for members and keeps kitchens running.
Suppliers are also adapting to these challenges. Many are expanding their networks, building stronger logistics systems, and offering sustainable alternatives. For restaurants, this means more options and better stability.
By working with a GPO, operators can strengthen their supplier relationships while securing procurement savings. It’s a win-win: suppliers gain steady business, and restaurants gain resilience.
Technomic’s data shows how much sales can drop when severe weather hits. In North America [SH2] hit by polar vortex events, restaurant sales fell by 5% to 7% in a single month
These losses come from restaurant closures, supply interruptions, and fewer customers dining out. With margins already tight, a drop like this can hurt. That’s why cost savings from GPOs and wholesale suppliers are so valuable they give operators more breathing room when sales are down.
Extreme weather is not going away. In fact, it’s increasing. Restaurants that want to thrive must put procurement strategy at the center of their planning. That means:
Restaurants that take these steps will be better prepared to manage costs, serve guests, and stay profitable.
Extreme weather is unpredictable. But procurement savings don’t have to be.
Restaurants can work with a food GPO and trusted suppliers. This helps them protect against rising costs and supply chain problems. The result is more stability, stronger margins, and a better guest experience.
Now is the time for operators to treat procurement as a growth strategy not just a back-office function. With the right partners, restaurants can face tomorrow’s storms with confidence. Get Started with Entegra.