With new tariffs being imposed on some international imports, bars and restaurants in the U.S. are feeling the pressure. Recent tariffs—essentially taxes paid by U.S. importers at the point of entry—are driving up the cost of staples, specialty spirits like Campari and Cointreau, and key ingredients used in kitchens nationwide.
In the food and beverage industry, narrow supply chains that are overly reliant on a single country or product source are vulnerable. Today’s volatile trade environment is dangerous to businesses that haven’t diversified their sourcing strategies. Many are now exposed to significant financial and operational risk.
Importers can attempt to offset tariff costs by negotiating lower prices with suppliers, but they inevitably pass the burden of costs upstream, ending with the bill served to restaurants and bars. All this results in thinner profit margins, higher menu prices, and a tougher road ahead for independent operators.
While the best time to prepare for a disaster is yesterday, the second-best time is today. Businesses need to buy inventory before tariffs take full effect, identify alternative or domestic substitutes where feasible, and communicate with customers early about potential pricing changes. Short-term moves are great, but it’s important to start investing in the long-term solution of diversification.
Diversifying suppliers across multiple regions, expanding product offerings, and leveraging data-driven technology to make sourcing decisions aren’t just smart strategies—they’re essential ones. Businesses that embrace this mindset will be better equipped to absorb shocks, maintain supply, and stay competitive in a fast-changing global landscape.
The future of the food and beverage industry belongs to those who prepare when uncertainty rears its head, not just react. Proactive, diversified approaches can transform trade problems into opportunities for bars and restaurants across the country.
David Lennarz co-founded Registrar Corp in 2003 and serves as the company President. He has worked for nearly 25 years in FDA-regulated industries, conducting seminars on FDA regulations for trade associations, export organizations, and governments around the world .
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