Every time tariffs are back in the headlines, operators brace for another jump in food and supply costs. This week is calmer than the headlines suggest. The new duties that just took effect are, for the most part, a continuation of a rate that was already in place: a temporary global tariff of about 10% was set to expire, and it was renewed at roughly 10% to 12.5% across about 60 trading partners rather than layered on top of what came before. Just as important, tariffs rarely reach your invoice at their full headline rate, because the cost is shared and diluted as it moves down the supply chain. None of this means tariffs do not matter, but it does mean the right response is steady and specific, not a panic. CORE Insights Group helps operators do exactly that through managed procurement: a transparent agreed fee, no markup on spend, and 100% of rebates passed back to you, working with the distributors you already use.
Are this week's new tariffs really a fresh cost increase?
For most operators, mostly no. The duties that took effect this week largely replace a temporary global tariff of about 10% that was set to expire, renewing it at roughly 10% to 12.5% on about 60 trading partners rather than adding a new layer of cost on top (see the coverage of the change). For the many partners that stay near the prior 10% level, the change to a landed cost is close to nothing; for the handful at the higher end, the increase is a few percentage points on the imported portion of a product, not on your whole invoice. Trade policy will keep shifting, and some categories will still see real pressure, but this particular round is better understood as a rollover than a shock. That is exactly why a measured, line by line approach beats an across the board price increase.
How do tariffs actually reach your food and supply costs?
A tariff is paid at the border by the importer, but it rarely stops there, and it rarely arrives at full strength. That cost is typically built into the price the distributor charges, which is built into the price you pay. Because most products pass through several hands, from manufacturer to importer to distributor to your kitchen, part of the increase is often absorbed along the way, as a supplier trims its own margin to keep your business rather than pass everything along. A tariff is also charged on the import price of a good, not on the retail price you pay, so a headline rate of, say, 10% almost never lands as 10% on your invoice. Understanding this tells you where to look: not at the headline number, but at which of the specific items you buy carry imported content, and whether a better-priced or domestic alternative exists.
Which hospitality categories are most exposed to tariffs?
Exposure is not spread evenly across the plate and the property. Some of the most tariff-sensitive categories in hospitality are not food at all. Disposables and much of the specialty paper used across foodservice have historically been sourced from Asia, as has a great deal of the complex maintenance, repair, and operations (MRO) equipment and capital equipment that kitchens and properties rely on. Product origins are also layered: an item assembled domestically may still contain imported components, so a single SKU can carry hidden exposure. On the food side, the effect varies by category and by how quickly a domestic or alternative-country supply can fill the gap. The practical takeaway is that a real tariff strategy starts with a line-by-line look at your spend, not a single headline number.
Why is the impact so uneven?
Tariffs are rarely black and white. When a category has strong domestic production, operators can shift toward those suppliers and blunt much of the impact, though the biggest buyers tend to get first access to limited domestic supply. When a category is dominated by imports with no near-term domestic substitute, prices are more likely to rise until the market adjusts, which can take time. Some exporting countries may choose to reduce shipments to a tariffed market rather than absorb the cost, which tightens supply further. All of this means two operators buying similar products can feel very different effects depending on their specifications, their suppliers, and their willingness to substitute.
The three-bucket strategy for tariff-exposed purchases
As you plan your sourcing of imported operating supplies, equipment, disposables, and paper, it helps to sort exposed items into three buckets. First, rigid spec: brand or proprietary imports that genuinely cannot be changed. Second, semi-rigid spec: items that look like hard-spec imports but where a lower-cost or domestic alternative could work with a closer look. Third, substitutable products: things like many disposables where you do not mind sourcing an alternative. Sorting your spend this way turns a vague worry about tariffs into a concrete action list, protecting the specifications that truly matter while freeing up the ones that do not to be re-sourced for a better price.
What should operators actually do, without overreacting?
Because this round is largely a renewal rather than a new shock, the right moves are measured, not dramatic. Map your exposure first, so you know which line items carry imported content and how much of your spend sits in each of the three buckets. Diversify suppliers so a single tariffed origin does not dictate your costs, and qualify alternatives before you need them, because the operators who move early get first access to constrained domestic supply. Where specs allow, substitute toward better-priced or domestically produced options. And use scale: pooled volume and a credible willingness to move business are what actually move a supplier's price. What you should not do is raise menu or room prices across the board on the strength of a headline, because a rollover with partial pass-through rarely justifies it. These moves protect margin without touching the guest experience, which is exactly the kind of cost control that lasts.
How managed procurement helps you ride out tariff swings
A single operation rarely has the volume, the market data, or the staff time to run this playbook well while also running service. That is the gap managed procurement fills. CORE brings the scale of pooled buying across many operators, the visibility to know when a price is out of line with the market, and a dedicated team to source alternatives, renegotiate, and hold the savings in place as conditions shift. CORE draws on more than 100 years of combined industry experience, over $15B in leveraged purchasing volume, and more than 50,000 cost-controlled items, and it works with the distributors you already use rather than forcing a rip-and-replace. Unlike a group purchasing organization (GPO), CORE is not paid out of your spend and does not keep your rebates: it charges one transparent agreed fee, takes no markup, and passes 100% of rebates back to you. CORE is also GPO-agnostic, so it can work alongside a program you already have.
"We started CORE to make sure that operators were getting the value they rightfully deserve, and that no one was profiting from their business without providing value." Ross Kellman, co-founder, CORE Insights Group
See your own tariff exposure on your own numbers
The cleanest way to understand tariff risk is on your own spend. A short conversation, or a year-to-date AP vendor spend report, is enough to show where your imported exposure sits, which categories can be re-sourced, and how much margin a smarter buying strategy could protect. Tariff policy will keep shifting, but a clear map of your exposure and a partner with the leverage to act on it is what turns turbulence into a manageable line item rather than a surprise on your P&L.
Frequently asked questions
Are the new tariffs this week a big new cost increase for hospitality?
For most operators, no. The duties that took effect this week largely renew a temporary global tariff of about 10% that was set to expire, keeping it at roughly 10% to 12.5% across about 60 trading partners rather than stacking a new cost on top. For partners near the prior 10% level the change is close to nothing, and even at the higher end it is a few percentage points on the imported portion of a product, not on your whole invoice. Tariffs also rarely pass through at their full headline rate, so this round is better understood as a rollover than a fresh shock.
How do tariffs affect restaurant and hotel costs?
A tariff is a tax on imported goods that is usually built into the price by the time it reaches an operator, so it raises the landed cost of the imported items you buy or of imported components inside domestically assembled products. It rarely passes through at the full headline rate, though, because exporters, importers, and distributors each tend to absorb part of the change. The impact is also uneven: categories with strong domestic alternatives feel less pressure, while import-dependent categories with no near-term substitute tend to see prices rise until the market adjusts.
Which hospitality supplies are most affected by tariffs?
Some of the most tariff-sensitive categories are not food. Disposables and much of the specialty paper used in foodservice have historically come from Asia, along with a great deal of complex maintenance, repair, and operations (MRO) equipment and capital equipment. Product origins are layered too, so an item assembled domestically can still carry imported components. That is why a real tariff strategy starts with a line-by-line look at your actual spend rather than a single headline rate.
What can operators do to reduce the impact of tariffs?
Start by mapping your exposure so you know which line items carry imported content. Sort exposed purchases into three buckets: rigid spec that cannot change, semi-rigid spec where a lower-cost or domestic alternative might work, and freely substitutable products. Then diversify suppliers, qualify alternatives before you need them since the biggest buyers get first access to constrained domestic supply, and use pooled buying leverage to negotiate. These moves protect margin without changing the guest experience.
Does CORE Insights Group help operators manage tariff-driven cost increases?
Yes. CORE helps clients map their tariff exposure, source and qualify alternatives, and renegotiate pricing, then holds those savings in place as conditions change. It brings the scale of pooled buying, market visibility to spot prices that are out of line, and a dedicated team to execute, drawing on more than 100 years of combined experience, over $15B in leveraged volume, and more than 50,000 cost-controlled items, while keeping the distributors you already use.
Is CORE Insights Group a GPO?
No. CORE is a managed procurement partner, the operator-favorable alternative to a GPO. Instead of being paid out of your spend or keeping rebates, CORE charges one transparent agreed fee, takes no markup, and passes 100% of rebates back to you. CORE is also GPO-agnostic, so it can work alongside a GPO you already use rather than forcing you to replace it.