How do I measure the impact?
Calculate the new cost per drink or item for affected products and compare with menu prices.
Pour cost and drink cost reports show the change. Focus on high-volume items first.
Small increases on high-volume items matter more than large ones on rare items.
What responses work?
Adjust menu prices, change recipes or pour sizes carefully, renegotiate with suppliers, switch brands and buy ahead of announced increases.
Buying ahead of an announced increase locks in the old price; it requires cash upfront.
Communicate price changes thoughtfully. Regular guests notice; a small note on the menu or a server explaining that supplier costs rose is usually received better than unexplained jumps. Spreading increases across several items, rather than raising one popular item sharply, also softens the impact.
Review supplier options annually. Competitive quotes keep pricing honest even if you stay with the same supplier, and a second supplier gives you a fallback when one raises prices or runs short.
When does funding help?
When buying ahead of an announced increase saves more than the funding cost, or when bridging until menu changes take effect.
Compare savings with funding cost before deciding.
| Response | Timing | Effect |
|---|---|---|
| Menu price adjustment | Weeks | Recover cost |
| Buy ahead | Before increase | Lock price |
| Brand switch | Weeks | Lower cost |
| Renegotiate | Ongoing | Better terms |
Worked example: buying ahead of a spirits increase
A bar averaging $88,000 in monthly deposits learns of an upcoming price increase on its core spirits and buys about three months of stock, $14,000, at the old price. Using an illustrative factor rate of 1.19, $14,000 would mean $16,660 repaid over roughly 4 months: 84 daily payments of about $198.
That works out to about $4,165 a month, or 4.7% of the $88,000 this business deposits monthly, and the total cost of the money is $2,660. If the savings exceed the funding cost, buying ahead protects margins.
For comparison, repaying the same $16,660 over 2 months would lift the monthly outlay to about $8,330, or 9.5% of deposits, and a shorter term can come with a lower factor rate, so comparing both versions side by side is worthwhile.
| Average monthly deposits | $88,000 |
|---|---|
| Amount funded | $14,000 |
| Factor rate (illustrative) | 1.19 |
| Total repaid | $16,660 |
| Cost of the funding | $2,660 |
| Term | about 4 months |
| Daily payment (84 payments) | $198 |
| Payments as a share of deposits | 4.7% |
Who this fits
Usually a fit
- Bars and cafés facing announced increases
- Operators adjusting menus
- Businesses with storage
When it may not be the right move
- Small savings that do not beat funding cost
- Owners with reserves
- Businesses without deposit history
What you’ll typically need
- Recent business bank statements
- Supplier price notice
- Business details
Frequently asked questions
Should I always buy ahead?
Only when savings exceed funding and storage costs.
How often should I review menu prices?
Many operators review quarterly.
How quickly can money for a buy-ahead order arrive?
Most hospitality files get a same-day decision once bank statements are uploaded, and approved money for a buy-ahead order often lands within one or two business days.
Does a 500 credit score rule me out for a buy-ahead order?
No. Applicants from 500 can be reviewed for a buy-ahead order; the deposit history does most of the work, and better credit typically improves the terms you are offered.
Prices going up?
Apply and buy ahead.
Updated October 6, 2026