Adverse weather conditions, transitions, and seasonal declines in Mexico, Guatemala, and the U.S. are still impacting various agricultural regions and products. As a result, prolonged periods of elevated market prices and potential supply shortages are anticipated. The weather in the Salinas Valley has returned to normal temperatures, but the inland valleys are still experiencing very hot conditions. Growers have successfully managed the heat by harvesting earlier in the day to maintain supplies, but some challenges may still be ahead.
Grains
After the last week’s market move, soybean oil futures moved lower overall, though the week was volatile. The USDA released a report highlighting higher stocks for beans & oil sending the market lower. Canola also received good crop outlook news, so it fell. Palm followed soy lower.
Dairy
Shell egg markets are up this week. California and Northwest markets are up. Farm in Colorado was identified as HPAI positive over the weekend with an expected loss of approximately 1.3 million birds at least primarily cage free. The Block & Barrel are increasing. Butter is down.
Beef
Downward pressure developed across the higher value cuts of the animal. Choice & Select B/I & BNLS ribs bore the brunt with excess supply driving bids lower. Loins driving strips, short loins, & tender bids lower. Chucks experienced slight weakness not to the extent of middle meats. Limited supply of lean trimmings continue to bolster the round and grind complex.
Pork
Butts market declined on the weak. Material is steady – pulled pork demand is moderate. Loins are steady but retail features could drive the market upward. Spareribs have tighter price ranges, St. Louis and back ribs are considered steady. The belly market is unsettled trading in wide price ranges. The bottom has fallen out of trimmings.
Poultry
Wings and tenders continue to be hottest part of the bird. The wing market continues to show growth despite being in a traditional slow time for wing demand. Breast have started to even out. Dark meat demand remains very good. Whole birds are mostly balanced.
Seafood
Wild salmon season is in full swing and domestic shrimp has been at great value all year with steady prices. Wild domestic shrimp and wild domestic salmon are great additions to summer menus that customers look for. Be sure and check out all that Portico fish and shrimp offer in Wild and Domestic selections!
In today’s competitive restaurant landscape, multi-unit operators wield immense power – but only if they can unlock the hidden potential within their data. Across your locations, valuable insights are scattered within your supply chain, procurement processes, and purchasing decisions.
The challenge? Transforming this foodservice data into actionable intelligence that drives real profitability.
Together, Let’s Unlock Your Data’s Potential
Consolidated Concepts is your trusted partner, empowering multi-unit restaurants to leverage their data through a powerful suite of solutions. We provide the tools and expertise you need to make smarter decisions and optimize your bottom line.
Here’s how Consolidated Concepts can be your scalable solutions partner in this data-driven journey:
Uncover Hidden Savings
Our spend management technology provides a comprehensive view of your spending habits across all locations. This “big picture” approach helps you identify areas for optimization and eliminate wasteful spending. We’ll work side-by-side with you to analyze the data and develop actionable strategies for cost reduction.
Data-Driven Decision Making
Our spend management tools translate complex data sets into easy-to-understand reports and dashboards. With real-time insights at your fingertips, you can make informed decisions about everything, from inventory management to budgeting and forecasting. Consolidated Concepts will ensure your team has the training and support they need to leverage these insights effectively.
Effortless Data Visualization, Empowering Action
Consolidated Concepts transforms your foodservice data-into clear, concise dashboards. No more struggling to decipher spreadsheets and reports. Our user-friendly technology allows you to monitor key metrics, such as:
Pricing Trends
Purchasing Compliance
Contract Statuses
Rebate Savings
Price Verification Statistics
Commodity Price Benchmarks
Informed Decision Making at a Glance
With all this information readily available, you can make strategic choices that optimize your operations. Identify areas for improvement, ensure contract compliance, and seize new sourcing opportunities – all based on concrete foodservice data.
Predicting the Future
Food cost fluctuations are a challenge for multi-unit operators. Our data analysis tools help you predict these fluctuations with greater accuracy, allowing you to plan your inventory and pricing strategies more effectively. As your partner, we’ll work with you to develop customized forecasting models that take your unique business needs into account.
Eliminate Pricing Discrepancies
Inaccurate pricing across various supplies can significantly impact your bottom line. Our data cleaning and organization tools ensure you have a clear picture of your true costs, empowering you to make data-driven decisions and avoid unnecessary expenses. We’ll handle the complex data wrangling, so you can focus on what matters most – running your business.
Unlocking Additional Revenue Streams Beyond Data
While your foodservice data is a powerful tool, it’s just one piece of the puzzle. Consolidated Concepts offers a suite of solutions designed to maximize your profitability across all areas of your operations, including:
Unfavorable weather patterns and seasonal decreases in Mexico, Guatemala, and the U.S. continue to affect different growing areas and commodities. Consequently, these issues are expected to result in prolonged periods of higher market prices and possible supply shortages. For the Salinas Valley, weather challenges will continue through July as temperatures have been very hot. While the early harvesting had caused some issues with supplies, the heat wave may now also be a factor in causing more supply issues. While we have been seeing good quality on most items and supply was improving, the heat wave will likely be impacting that progress.
Grains
The soybean oil market was on fire last week. Due to the recent market lows, biofuel manufacturers entered back into the market and pushed the market nearly 16% higher. It took Canola oil and palm oil higher, too.
Dairy
Shell Egg markets remain steady with steady demand. California eggs re still dropping slightly. Cheese and butter markets are both up due to increased demand. Cream and culture pricing will have nominal increases for July. Processed Eggs will see a decrease for July as Avian Influenza is not a factor this season.
Beef
Packers continue to pay more for cattle and are left with the need to balance cost w/ return on investment going forward. Middle meats have slowed and anything grading less than upper 2/3 programs on strip, rib, and sirloin sub–primals are encountering resistance. Insides, chucks, and grinds continue steady; due to need for lean material for ground beef.
Pork
Butts continue to come down as post–holiday demand was expected to be weak. Loins are still down as demand has tapered off, but based on historical trends, could still rebound. Ribs took a hit this week, as demand has waned. The belly market continues its downward trend for several weeks, but experts are still calling this market volatile. Trimmings are down with good supply.
Poultry
Wings and tenders continues to be the hottest part of the bird and excess supply is nonexistent. The wing market continues to show growth despite being in a traditional slow time for wing demand. Breast have started to even out. Dark meat demand remains very good. Whole birds are mostly balanced.
Seafood
Wild salmon season is in full swing and domestic shrimp have been at great value all year with steady prices. Wild domestic shrimp and wild domestic salmon are great additions to summer menus that customers look for. Be sure and check out all that Portico fish and shrimp offer in Wild and Domestic selections!
Adverse weather conditions and seasonal decline in Mexico, Guatemala, and the U.S. are still impacting various growing regions and commodities. As a result, it is anticipated that these challenges will lead to extended periods of elevated market prices and potential shortages in supply. The Salinas Valley, as well as most of California, is heading for a heat wave, and while the early harvesting has caused some issues with supply, the heat wave may also be a factor in future supply issues. Despite this, the quality of most items has improved, and the supply situation is better. However, we need to closely monitor all commodities as temperatures are expected to exceed 100 degrees in certain areas.
Grains
While soybean oil moved lower last week, the sideways trading trend continues. The USDA released its acreage report and corn won some acres over soybeans. Soybeans are higher, now, but so are meal and oil this week. Palm moved lower with soybean oil, Canola was flat.
Dairy
Shell egg markets are down this week. California and Northwest markets are flat. The Block is increasing & Barrel are decreasing. Blocks were above barrels today for the first time in 6 weeks. Butter is flat. Sources suspect inflation may be impacting travel plans this year.
Beef
Packers did encounter facility challenges this week, this helped limit supply and held trade levels flat. Middle meats continue to trade steady across the strip, rib, and sirloin sub–primals. Tenderloins continue to trade under pressure. Insides, chucks, and grinds continue steady; due to need for lean material for holiday grind ads. With limited supply, thin meat demand should spike near–term.
Pork
Butts came down as the market took a significant drop right before the July 4th holiday. Loins are still down as demand has tapered off, but should start to rebound. Ribs are still holding strong. The belly market has continued its downward trend for several weeks. The bottom has fallen out of trimmings as supply is up.
Poultry
Wings and tenders continue to be hottest part of the bird and excess supply is nonexistent. The wing market continues to show growth despite being in a traditional slow time for wing demand. Breast have started to strengthen again as demand continue to pick up. Dark meat demand remains very good. Whole birds are mostly balanced.
Seafood
Snow crab season is 70% met in terms of quota. Harvest is good but not great with more 5/8oz clusters available. With king crab supply being short, Dungeness and snow crab are the best alternative. Wild Salmon is in season.
The volatile markets across various commodities have been attributed to weather-related problems such as excessive heat and rainfall and a shortage of USDA inspectors, specifically affecting the avocado industry. As a result, it is anticipated that these challenges will lead to higher market prices and potential gaps in supply. The temperature in the Salinas Valley is rising, and the early harvest is still causing supply problems, but there has been a gradual improvement. Although the warmer weather is beneficial, it will take time to recover fully. Consequently, we can expect volatile markets for most commodities.
Grains
Soybean oil traded within a very tight range and was flat for the week. Palm oil supply and demand is balanced, and Canola followed palm and soy. From actual activity, the markets were very busy. Planting for soybean and Canola is really moving nicely with good weather.
Dairy
Shell egg markets flat this week. The Block & Barrel are up. Milk volumes are noted to be tighter than in recent weeks as temperatures rise. Butter is down. Cream availability is tightening to various degrees throughout the country, butter producers indicate cream volumes are generally able to meet processing needs.
Beef
Packers continue to eye higher cattle cost, while buyers continue to experience slower sales. Middle meats continue to trade mostly steady. Tenderloins continue to trade under pressure from lagging consumer demand. Insides, chucks, and grinds continue steady. The COF report will be released on Friday; the on–feed number is projected to be 1.1% below a year ago.
Pork
Pork butts are relatively flat for next week, expect markets to trend up after this flat week. Spareribs look to be coming down while backribs and St. Louis are flat. Bellies are also coming down as demand has come down. Loins are following suit with pork butts.
Poultry
Wings and tenders continue to be hottest part of the bird and excess supply is nonexistent. The wing market continues to show growth despite being in a traditional slow time for wing demand. The breast market was steady this week as supply and demand has leveled off. Dark meat demand remains very good. Whole birds are balanced.
Seafood
Snow crab season is 70% met in terms of quota. Harvest is good but not great with more 5/8oz clusters available. With king crab supply being short, Dungeness and snow crab are the best alternative. Wild Salmon is in season.
Distribution agreements can play a crucial role in managing foodservice challenges more effectively within the context of procurement and supply chain management.
According to research by the National Restaurant Association, operators today are grappling with several challenges, including:
Increased Business Expenses
The Necessity for Additional Staff
Supply Chain Disruptions
Debt Repayments
These pressing issues raise critical questions for multi-unit restaurant operators, especially when it comes to navigating master distribution agreements.
Understanding Restaurant Distribution Agreements
Restaurant distribution agreements typically fall within the procurement and purchasing phase of the supply chain, involving the sourcing, ordering, and delivery of goods from suppliers to the restaurant. By formalizing a distribution agreement with a reputable distributor, restaurants can ensure a reliable and consistent supply of high-quality ingredients while effectively managing their costs and inventory levels.
Key Elements of a Distribution Agreement
What is a restaurant distribution agreement? A restaurant distribution agreement is a legal contract between a restaurant and a distributor, outlining the terms and conditions of the supply chain process. This agreement defines the products and services that the distributor will provide, along with pricing, payment, quality, and delivery standards. It may also include provisions for warranties, liability, confidentiality, and dispute resolution. The primary goal is to establish a clear understanding between the restaurant and the distributor, mitigate risks, and ensure a reliable, cost-effective supply chain to support operations.
Products and Services
Defines the types of food and beverage products the distributor will supply (e.g., fresh produce, dry goods, dairy, meat).
Includes essential services like order processing, inventory management, and delivery.
Pricing and Payment Terms
Details the pricing structure, including discounts, rebates, and volume-based incentives.
Specifies payment methods, due dates, and penalties for late or non-payment.
Includes provisions for price adjustments based on market conditions or changes in raw material or transportation costs.
Quality and Delivery Standards
Outlines the quality standards that the products must meet.
Specifies delivery schedules and procedures to ensure timely and high-quality deliveries.
Warranties and Liability
Includes provisions for product warranties and distributor liability.
Establishes terms for addressing defective products or delivery issues.
Confidentiality
Contains clauses to protect sensitive information shared between the restaurant and distributor.
Dispute Resolution
Outlines procedures for resolving conflicts or disputes that may arise during the contract period.
The agreement should specify the exact products and services covered, as well as any exclusions or limitations, to ensure that both parties have a clear understanding of their responsibilities and obligations. Additionally, the agreement may outline the quality standards that the products must meet and the delivery schedules and procedures to ensure that the restaurant receives high-quality and timely deliveries of the products they need.
Common Questions About Master Distribution Agreements (MDAs)
Master Distribution Agreements (MDAs) offer significant advantages for multi-unit restaurant operators, but navigating their intricacies can be complex. Here are some key questions operators often ask, along with insights to help you make informed decisions:
When is the Right Time for an MDA? While there’s no one-size-fits-all answer, most operators with a regional or national presence can benefit from an MDA. Consider an MDA if you:
Manage multiple locations with consistent purchasing needs.
Have enough buying power to potentially negotiate better pricing and terms.
Desire streamlined logistics and consistent product delivery across locations.
What are the Key Benefits of an MDA? MDAs offer a multitude of advantages, including:
Cost Savings: Negotiate volume-based discounts and potentially secure better pricing on essential supplies.
Supply Chain Efficiency: Establish clear protocols for deliveries, inventory management, and communication with a single distributor.
Standardized Quality: Ensure consistent product quality across all locations by working with a single, reliable supplier.
Administrative Efficiency: Reduce paperwork and streamline ordering processes by dealing with one distributor.
What Terms Should I Negotiate in an MDA? An effective MDA should address critical aspects like:
Pricing: Negotiate favorable pricing structures considering factors like volume, order frequency, and market fluctuations.
Minimum Order Quantities (MOQs): Set realistic MOQs that optimize inventory management without creating unnecessary stockpiling.
Delivery Schedules and Fees: Ensure timely deliveries at agreed-upon frequencies and negotiate transparent delivery fee structures.
Product Availability and Substitutions: Outline clear procedures for product substitutions in case of shortages.
Performance Guarantees: Establish service level agreements (SLAs) to ensure the distributor meets specific delivery timeframes and quality standards.
Dispute Resolution Procedures: Outline a clear process for resolving any disagreements that may arise during the contract term.
What Happens if I Need to Terminate the MDA? MDAs typically have defined termination clauses. Carefully review these clauses, including any early termination fees or minimum purchase requirements you might incur.
By understanding these key aspects of MDAs, multi-unit restaurant operators can leverage these agreements to optimize their supply chain, secure cost savings, and ensure consistent product quality across their locations.
We leverage our industry expertise to build RFP’s and negotiate with distributors and develop agreements that benefit your operation. Outsourcing your restaurant distribution agreements to Consolidated Concepts offers several benefits for restaurant operators.
Cost Savings
Efficiency
Risk Mitigation
Experience and Expertise
Technology and Analytics
Strategic Partnerships
Scalability
Outsourcing your distribution agreements to our third-party experts means tapping into our extensive network of suppliers. We negotiate competitive prices and favorable terms, ensuring punctual delivery of top-tier products. Leveraging advanced technology and analytics, we optimize your supply chain for efficiency, mitigate risks, and offer invaluable industry insights. This strategic approach not only reduces costs but also enhances your restaurant’s competitiveness and profitability, setting a foundation for sustained success.
At Consolidated Concepts, we’ve been through it, know the pitfalls, and have the software advantages to make your contract management more efficient.
Fill out the form below or click here to contact our experts for help with your distribution agreements and learn how you can streamline the entire contract management process!
Weather conditions are once again causing disruptions on both the east and west coasts, leading to a slowdown in the progress we had observed in recent weeks. As a result, markets are experiencing an increase in prices due to lower yields. The Salinas Valley’s weather conditions are still hindering acreage productivity. To keep up with demand, the industry is harvesting early, leading to a limited supply of crops. Below-average ground temperatures stunt crop growth, resulting in high commodity market prices. Regrettably, this unfavorable weather pattern is forecasted to persist into June.
Grains
The whole soybean complex was lower. The lower markets are pointing to lower soybean oil in the future. Crush margins are falling again for crushers, which, if sustained, could lead to higher basis levels. Planting is doing very well. It is wet in some areas, but overall planting for beans is ahead of schedule.
Dairy
Shell egg markets flat this week except for Large & Medium shell eggs. California and Northwest markets are also flat. The Block is up & Barrel are flat. Some manufacturers have shared they are seeing increased interest in aged cheeses. Butter is up. Bulk butter overages range from 1 to 10 cents above markets.
Beef
Economic strains on the consumer are pushing focus to value cuts. Flank and flap, appear to be in a lull due to a possible price reset. Ribs and tenders continue to disappoint as buyers steer clear of high prices. Top sirloins and strips are stars leading to higher prices. Insides, chucks, and grinds continue steady; supporting each other due to use of lean material for Father’s Day.
Pork
Pork butts are finally trending down coming off the Memorial Day. As supplies tighten and customers prepare for the July 4th holiday expect markets to hold strong. Ribs are still considered a strong market even though we are seeing spares come down, backribs and St. Louis continue to rise. Bellies are relatively flat for next week as demand is steady. 72 trim is up.
Poultry
Tenders continue to be hottest part of the bird and excess supply is nonexistent. Wings continue to be in high demand despite the summer season being here and supply is limited. Jumbo and medium breasts supply has improved as hatchability and bird weights are improving. Dark meat demand remains very good.
Seafood
North Atlantic Lobster tails supply is improving, and prices are coming down. Markets are steady week–over–week. Seafood sector is gearing up for big holidays going into summer and operators are revamping summer menus.
Weather conditions in the eastern region have started to show signs of improvement, while the delayed rainy season in Mexico and ongoing drought conditions may lead to unpredictable crop cycles through the 2024-25 season. Nevertheless, we are still witnessing the persistent consequences that have affected different commodities, leading to reduced yields and consequently causing an increase in market prices. Production in South Georgia is increasing for various items, although squash will remain scarce due to weather-related challenges. Over the next ten days, we anticipate tight markets in the region and the West Coast on chile peppers, including tomatillos, shishitos, and serranos, will continue to be in short supply and volatile for the next few weeks.
Grains
Soybean oil futures moved higher last week. With good planting progress, good weather, ample South American supply, and large fund selling, the move seemed more like keeping in step with higher palm than anything else. Expect the market to trend lower into next week. Canola, too, was higher.
Dairy
Shell egg markets are all up. The latest HPAI outbreaks only directly affect Michael Foods. The two farms are a blend of both Conventional and Cage Free egg layers (hens). The Block & Barrel are decreasing. Cheese production schedules are steady to stronger throughout the U.S. Butter is up. Cream is tightening.
Beef
The market continues to be unsettled as packers and buyer have different ideas on which direction the market will move this summer. Ribs, strips, and top butts are holding steady. Tenders continue to disappoint as consumers shy away from higher prices. Insides, chucks, and grinds are steady as customer look for bargains. Increased harvest could lead to a market adjustment prior to next holiday.
Pork
Butts have softened as expected but not at the rate forecasted after Memorial Day. Spare ribs remain volatile due to constraints from demand and St. Louis production. Backribs are trending up and should continue throughout June. Boneless loins will follow suit with butts on their normal season decline until later in the month. Bellies continue to be a rollercoaster.
Poultry
Tenders continue to be hottest part of the bird and excess supply is nonexistent. Wings continue to be in high demand despite the summer season being here and supply is limited. Jumbo breasts supply has improved as hatchability has improved. Dark meat demand remains very good. Whole birds are mostly balanced.
Seafood
North Atlantic Lobster tails supply is improving, and prices are coming down. Markets are steady week–over–week. Seafood sector is gearing up for big holidays going into summer and operators are revamping summer menus.
Weather patterns in Florida, Mexico, Georgia, and California have significantly impacted various crops, resulting in lower yields and ultimately driving up market prices. In general, supplies from the Salinas Valley continue to be limited. Consequently, we are still witnessing active markets. The Salinas Valley’s weather conditions are still hindering productivity. The industry is harvesting crops early to meet the demand, resulting in limited supply. The below-average ground temperatures impede crop growth, leading to extreme market conditions for most commodities. Unfortunately, this unfavorable weather pattern is expected to persist into June.
Grains
Large fund buying, soybean oil stocks drawdown, and wet weather in the US growing region, aided in the futures market for soybean oil moving higher. Canola moved higher with the possibility of a rail strike and wet weather there, too. Palm was slightly lower with good production. Exports, though, are looking to increase.
Dairy
Shell egg markets are all up. Reported 4.2-millionlayer farm in the Midwest has contracted the H5N1 virus, bringing the total number of hens lost this month to 7.4 million. The Block & Barrel are decreasing. Cheese production schedules are steady to stronger throughout the U.S. Butter is up. Cream is tightening.
Beef
Reduced harvest continues to limit transactions. Ribs, strips, and top butts continue to drift higher due to solid demand. Tender prices remain steady, as consumers shy away from higher priced cut. Insides, chucks, and grinds continue to support each other; limited trimmings are facilitating the use of these cuts into grinds.
Pork
Butts will start to trend downwards now that we have passed the Memorial Day holiday. Ribs are holding relatively flat as demand is steady and supplies are steady as well. Boneless Loins are holding strong due to exports. Bellies are coming down but will be short lived as the market is expected to rise.
Poultry
As hatchability of eggs remains an issue, we continue to see supply shortages especially on wings and tenders. Breast demand has started to level off. Wings demand continues to be strong. Tenders demand is very strong and remain the hardest offering to find. Dark meat demand remains very good. Whole birds are mostly steady.
Seafood
North Atlantic Lobster tails supply is improving, and prices are coming down. Markets are steady week–over–week. Seafood sector is gearing up for big holidays going into summer and operators are revamping summer menus.
Adverse weather conditions in Florida, Mexico, and California have had a notable effect on different produce, leading to reduced harvests and ultimately causing an increase in market prices. The recent rainfall during March has impacted the supply levels, leading to high market activity. Despite expanding into new acreage that is not fully operational yet, we anticipate ongoing supply shortages in the weeks ahead. Additionally, the Salinas Valley is still facing below-average temperatures. Reaching into these fields will likely cause supply issues towards the end of the season. We will continue to see some increases in mildew and anthracnose, which will continue to hold back yields and weights.
Grains
Soybean oil moved about 2% higher last week. Crude, diesel, and soybean oil were all higher. The short speculator position is still present, but funds were the big buyers last week. Palm oil was flat with balanced supply & demand, while Canola moved higher with soybean oil.
Dairy
Shell egg markets are thriving, notably those in California and the Northwest. The Block and Barrel are steadily expanding. Butter is ready. Cream supplies are starting to run low for the season. As summer approaches, milk production across the country follows seasonal norms.
Beef
Supply is limited, and packers are seeking for higher pricing; progressively increasing prices will be key. Prices for ribs and tenders have risen across the board, despite the fact that stock remains available. Strips and top buttocks continue to rise, while supplies remain limited. End cuts, insides, and chucks are flat. Grind prices increased due of a limited yield and increasing demand.
Pork
B/I in butts is expected to rise next week, although boneless butts fell slightly. Spareribs are also becoming more popular as the grilling season approaches. Loins are also rising due to increased retail advertising and robust exports. Bellies are rising next week, and the market remains turbulent.
Poultry
As hatchability of eggs remains an issue, we continue to encounter supply limitations, particularly for wings and tenders. Breast demand has begun to level off. The demand for wings remains robust. Tender demand is extremely high, and it remains the most difficult offering to find. Dark meat demand remained very good. Whole birds are usually steady.
Seafood
The availability of North Atlantic lobster tails is increasing, and their prices are declining. The markets hold constant from week to week. The seafood industry is preparing for the summer season and updating their menus in anticipation of the major holidays.
