On April 2, 2025, President Donald Trump implemented a two-tier tariff system: a universal 10% baseline tariff on all imports, along with additional country-specific “reciprocal” tariffs targeting approximately 60 nations. These actions will make the cost of imported goods rise effective immediately. For restaurants, that means higher prices on everything from commercial kitchen equipment, packaging to imported ingredients, beverages and technology. While the headlines debate international trade policies, smart restaurant operators can’t afford to wait it out. It’s time to prepare.
What’s Changing with Restaurant Tariffs?
The U.S. is enforcing new tariffs on imports from China, the EU, and other trading partners. These new trade restrictions may directly affect:
- Restaurant kitchen equipment
- POS systems and consumer electronics
- Uniforms, linens, and textiles
- Packaging materials and disposables
- Imported food ingredients, wines, and spirits
Understanding where your vulnerabilities lie is the first step in building a tariff-resilient restaurant operation.
How Should Restaurants Prepare for Tariffs? Here’s What to Do:
1. Audit Your Supply Chain for Tariff Exposure
Re-examine where your key supplies and equipment are coming from. Many restaurants discover they rely heavily on tariff-impacted regions. A simple supply chain audit can uncover hidden risk.
2. Have Direct Conversations with Your Vendors
Don’t wait for pricing surprises. Ask your suppliers:
- Are they shifting sourcing strategies?
- Do they have inventory reserves?
- Will pricing change in the next 3–6 months?
Early conversations can help you plan effectively and avoid last-minute decisions.
3. Lock in Pricing Before Tariffs Hit
If you’re planning capital expenditures—such as a kitchen renovation or POS system refresh—consider moving quickly. Securing pricing now can help you avoid cost spikes later.
4. Evaluate Alternative Sourcing Options
Work with your procurement team or a trusted partner to identify equivalent products not impacted by tariffs. A small brand switch or spec change can help maintain your margins.
5. Consider Domestic Suppliers
Now may be the right time to partner with U.S.-based manufacturers or distributors. Domestic suppliers can often provide better lead times and price consistency, even if the upfront cost is slightly higher.
6. Budget for Tariff-Driven Cost Increases
Model out scenarios with a 5–10% cost increase on key imports. This should inform pricing strategy, margin expectations, and capital allocation.
7. Stay Agile and Informed
Tariff regulations evolve quickly. Designate someone on your team—or partner with a firm—to monitor trade news, update forecasts, and adjust sourcing strategies in real-time.
Need Help Preparing Your Restaurant for Tariffs?
At ConStrata, we help restaurant operators navigate uncertainty with confidence. Whether you’re sourcing alternative suppliers, fast-tracking equipment upgrades, or renegotiating vendor contracts, we’ve got your back. Let’s keep your restaurant operations resilient—no matter what tariffs come next.
