Florida's Food Distribution and Hospitality Industry Shifts Under Pressure
If you’re a senior HR leader or executive in Florida’s hospitality sector, you’ve felt it—the subtle but seismic shifts reshaping the industry. From labor shortages to supply chain disruptions.
Over the past year, more of my consulting work has been with restaurants, boutique hotels, and food distribution providers across South Florida—and the conversations have changed. Yes, COVID brought the industry to its knees, but the resurgence that slowly started in 2023 came with a new set of challenges. This isn’t just about bouncing back; it’s about adapting to a landscape that’s fundamentally different.
We’re seeing the effects of severe weather damaging crops—not just here in Florida, but across key agricultural states. Disease outbreaks are threatening crops and livestock both locally and internationally. Add that to the weight of strained foreign relations, an uncertain economic climate, and climbing inflation—and you have a recipe that’s starting to hit our industry where it hurts.
As inflation rises, disposable income shrinks. And when people cut back, dining out, traveling, and hospitality experiences are often the first to go. For an industry built on service, this creates an urgent question for employers and HR professionals alike:
How do we adapt before the shift becomes a storm?
Recent hurricanes and crop diseases have taken a noticeable toll on Florida’s agriculture output. For a time, we saw produce shortages and price spikes. Thankfully, trade partners in the Caribbean and neighboring states helped close the supply gap, keeping things relatively stable. But as weather patterns grow more extreme and less predictable and foreign partnerships start to sour, that kind of bounce-back is no longer guaranteed.
International trade relations are also becoming less stable, and we’re feeling the strain most in food and distribution. This pressure has trickled straight into the hospitality sector. Large food distribution companies like Sodexo, Harvest Sherwood Food Distributors, and National Distribution Solutions, Inc. have all undergone restructuring—resulting in layoffs and shifts in service delivery. These changes are not just reactionary; they’re strategic responses to a new, leaner economic environment.
Port workers across Florida have even reported a measurable decrease in the volume and weight of food-related cargo. That’s not just a logistics issue—it’s evidence of a tightening pipeline. When supply is low and demand remains steady or grows, prices rise. It’s one more cost pressure passed down to restaurants, hotels, and hospitality providers who are already working to protect their margins.
Let’s add another layer to this and name it: the rising rate of inflation. With less discretionary income, people are making different choices. Dining out becomes less frequent. Travel plans are delayed. And for an economy like Florida’s—where tourism is a major revenue driver—the impact is hard to ignore.
Canadian tourists, in particular, have long fueled South Florida’s winter and spring seasons. But due to a mix of inflation, exchange rate pressure, and wavering travel confidence, we’ve seen a staggering 70% drop in seasonal Canadian visitors. That’s not just a dip in revenue—it’s a major shift in demand that directly affects staffing decisions, operational planning, and how the hospitality industry positions itself moving forward.
For now, ask yourself: Is your business reacting to the shifts—or staying ahead of them?
Protect the Future
The future can be uncertain, but with proper planning and strategic steps, you can minimize damage and guide the company through turbulent times. Whether you're preparing for potential layoffs or ensuring compliance with WARN notices, EEOC guidelines, and Florida-specific regulations, your actions will shape how smoothly the company navigates. Check out our article, “HR’s Role During Bankruptcy: Preparing for the Worst.” Restructuring may not be relevant to you but there are some great nuggets and gems in this article that you can implement right now at your company.
Book a consultation today to ensure your workforce management planning , and guidance. Don’t wait until it’s too late to safeguard your business’s future. Book a Free 30 Min Consultation
