Good morning! We’re halfway through February, the month of love, chocolate, and a hat-tip to past presidents.

Let’s talk tariffs — what to watch for and how forward thinkers are mitigating tariff impact with diversification.

What’s on tap in this issue:

• Tariff tipping points
• Leaders with foresight
• Tariff-proof your restaurant

​​​​​Industry news

What’s cookin’ in the industry?

While tariffs may spike food costs, you can still protect your prices, supply chain, and bottom line. 📊

Tariffs set to shake up 2025 restaurant costs

The U.S. government's proposed tariffs could bump up the cost of ingredients, supplies, and other necessities, leading to higher menu prices and tighter profit margins. Keep your eyes peeled for: 👇

📈 Tariff-ible ingredient costs — New proposed tariffs include a 25% tax on imports from Canada and Mexico (on pause until March) and a 10% tax on goods from China, potentially inflating food costs across the board.

🍷 Last call for cheap drinks — Restaurants reliant on imported wines and spirits may face steeper costs, forcing them to adjust menu prices or look for alternate suppliers.

• Tariffs on Mexico could hit tequila hard, which accounts for 13% of spirits sold by volume.

💲 Broader economic effects — Tariffs might drive up the price of fuel, auto parts, and other everyday items, impacting how often people dine out.

• The Tax Foundation estimates that tariffs could cost the average household more than $830 this year and that the economy could shrink by 0.4%.

How restaurants are prepping for the tariff impact

Take notes from major players who’ve taken proactive steps to head off potential setbacks from tariffs.

🥑 Chipotle’s di-guac-ification — Chipotle diversified its avocado sourcing to include Colombia, Peru, and the Dominican Republic, reducing reliance on Mexico to roughly 50%.

❤️ Foodtastic’s local love — Peter Mammas, CEO of Canada’s powerhouse, Foodtastic, says they're in a strong position because they prioritized local sourcing years ago. Only 10% of their supply comes from the U.S.

Timely tips

The tariffs on Mexico and Canada are on pause until March — use that time to help tariff-proof your restaurant.

🧺 Mix it up. Relying solely on imports from places like Mexico, Canada, or China? Time to diversify. Build relationships with local suppliers or explore alternative international markets to keep your kitchen running smoothly even when tariffs spike.

• 💡 If you mainly source avocados from Mexico, consider sourcing from Peru or California.

🪓 Sharpen your skills — Your negotiating skills. Tariffs are between countries, not businesses. So, talk to your suppliers. Many might be willing to absorb some costs or offer discounts to keep your business. If you meet halfway, it’s a win-win.

• 💡 Bulk buying or locking in long-term contracts could give you more leverage to negotiate better deals.

💰 Strategic pricing (without scaring off customers). Don’t just slap a price hike on your menu and call it a day. Ease into it. If you must, raise prices gradually and be open with your customers. Communication goes a long way — they’ll appreciate knowing why their favorite dish costs more.

• 💡 Highlight value-driven items or offer specials that shift focus away from pricier ingredients.

🛍️ Stockpile. If you can afford it, stock up on essential ingredients before tariffs hit. This gives you a buffer to maintain stable prices while competitors scramble to adjust.

• 💡 Prioritize non-perishable items or those with longer shelf lives. It’s easier to store and reduces waste.

🏋️Fine-tune your ops. Let tariffs be the nudge you need to tighten up operations. Cut down on waste, optimize your supply chain, and automate where possible. The leaner your operation, the better you can absorb rising costs without sacrificing profits.

• 💡 Use tech to monitor inventory and manage R&M. Efficiency is your secret weapon against uncontrollable circumstances.

From the community​​​​​

☕ Black Rifle Coffee’s Secret to Staying Ready

Tariffs might be brewing, but Black Rifle Coffee Company isn’t sweating it — at least on the operations end.

Why?

Because they’ve already sharpened their ops to cut out inefficiencies and keep their locations firing on all cylinders.

Before partnering with ResQ, Black Rifle was juggling repair and maintenance across multiple locations with little visibility into costs or vendor performance.

Fast forward to now — they’ve slashed repair times by 30%, cut costs by 20%, and eliminated the headache of tracking down reliable vendors.

With ResQ keeping everything centralized and transparent, they know exactly where their dollars are going — no surprise invoices, no wasted time, just smooth operations.

As new tariffs threaten to shake up supply chains, now’s the time to get your house in order.

Take a page from Black Rifle’s playbook: tighten up your ops and eliminate waste to keep your restaurant ready for changes down the road.

Break time

When your technician preaches the plan but won’t lift a hand

Dad joke time: What do you call a fake noodle?

An impasta

Ba-dum-ching 🥁

— Kareem at ResQ

Know someone who’d gobble this info up? Forward this email to a peer!

Was this newsletter forwarded to you? Subscribe to The Fix here.

Like this email? Reply and let us know what you think!

Shameless plug

What does ResQ do?

ResQ is the ONLY facilities management platform that streamlines restaurant R&M operations and enhances oversight.

Operators can efficiently track assets, create work orders quickly, and choose from a network of quality trades businesses to work with.

ResQ makes it possible to cut costs, save time, and scale — all at the same time

Love free samples? We do, too. Schedule a FREE demo to see how ResQ can help you kick R&M chaos to the curb.