When Tariffs Take a Bite: How Foodservice Wholesalers Can Weather the Impact

If there’s one thing foodservice wholesalers know, it’s that costs never stay still. Fuel prices shift, supply chains wobble, and customers watch their margins like hawks. But there’s another factor that can quietly creep into the equation and shake up your bottom line: tariffs.

Tariffs don’t just make headlines — they hit balance sheets. For foodservice distributors and manufacturers, the ripple effect can be tough: increased ingredient costs, tighter margins, and strained customer relationships. And in an industry where pennies add up fast, wholesalers can’t afford to be caught off guard.

So, what makes tariffs such a challenge, and how can the right approach (and a little help from tech) turn them from a crisis into a manageable cost?

The Tariff Trouble: Why Wholesalers Feel It First

Unlike retail, foodservice wholesale sits right in the middle of the supply chain. That means when import duties go up, wholesalers often absorb the initial shock before passing costs down to customers. Some of the biggest challenges include:

Rising Ingredient Costs

Tariffs on imported goods — from cooking oils to seafood — can push product costs up overnight. For wholesalers running high-volume, low-margin operations, even a 5% increase can eat heavily into profits.

Price Uncertainty

With tariffs fluctuating due to trade negotiations, global politics, or sudden policy shifts, wholesalers can struggle to forecast accurately. This unpredictability makes long-term contracts and customer pricing more complex.

Customer Pressure

Restaurant and foodservice operators already face tight margins. When wholesalers raise prices, customers may push back, shop around, or cut orders — putting strain on long-term relationships.

Inventory Strategy

Tariffs sometimes encourage stockpiling before rates increase. But overbuying creates its own risks: spoilage, storage costs, and cash flow crunches.

How Wholesalers Can Respond

While no one can control government trade policy, wholesalers can control how prepared they are. Here are a few strategies that foodservice players can use to soften the blow of tariffs:

Diversify Supply Chains

Reducing reliance on a single country or supplier helps spread risk. Whether it’s sourcing domestically or building stronger regional partnerships, having options is key.

Sharpen Pricing Models

Dynamic, data-driven pricing helps distributors adjust quickly while staying competitive. Instead of blanket increases, use customer-specific insights to pass costs fairly and transparently.

Boost Operational Efficiency

When product costs go up, internal inefficiency becomes even more expensive. Streamlining order management, reducing errors, and cutting manual admin helps protect margins.

Communicate with Customers

Transparency builds trust. Explaining the “why” behind a price increase — supported by data — helps restaurants understand the reality and keeps them loyal.

Where AI Can Help (and Why FOBOH Fits In)

Tariffs may be unpredictable, but managing their impact doesn’t have to be chaotic. That’s where FOBOH comes in.

Smarter Data, Faster Decisions

AI-powered order management gives wholesalers real-time visibility into costs, margins, and customer trends. Instead of reacting late, businesses can anticipate shifts and adjust before tariffs bite too hard.

Automated Order Processing

When tariffs push you to be leaner, every minute counts. FOBOH’s AI agents reduce manual admin, freeing up teams to focus on strategy, supplier negotiations, and customer care.

Customer Insights at Scale

When passing on tariff-related price changes, the key is clarity. FOBOH helps wholesalers understand customer buying habits so price adjustments can be targeted, transparent, and fair.

Final Bite

Tariffs are one of those challenges that wholesalers can’t control — but they can control how they respond. By combining smart sourcing, transparent pricing, and AI-powered efficiency, foodservice distributors can stay resilient no matter what global trade deals get thrown their way.

At FOBOH, we believe the future of wholesale is about working smarter, not harder — and even when tariffs add complexity, there’s always a better way to keep the supply chain moving. Contact us today to learn more.