Through decades of deepening trade ties, the Covid-19 pandemic, geopolitical upsets, trade wars and intensifying climate events – the vulnerabilities of far-flung supply chains have been exposed.
The World Economic Forum (WEF) reports research analysts at Barclays Corporate and Investment Bank suggest “there are strong signals globalisation may be coming to an end” after almost a century.
Sometimes called “slowbalisation”, this turning point has begun to accelerate, forcing hospitality operators to rethink everything from ingredient sourcing and equipment procurement to menu design and collaborative partnerships.
Australia’s restaurant industry must navigate this shifting global landscape to survive.
And there are benefits for businesses willing to do so.
WEF traces the ascent of globalisation to just after World War II, with an era of “hyper-globalisation” (1990 – 2008) driven by advances in transport, communications and liberalised trade.
“Slowbalisation” began back in the 2008 financial crisis when governments and businesses grew wary of over-reliance on single trading partners and just-in-time logistics.
Impacts of the past five years have compounded these pressures, prompting a renewed emphasis on security and resilience over pure cost efficiencies.
With the price for complexity and distance now rising to unattainable levels, a growing number of restaurant and hospitality businesses are recalibrating their supply chains, choosing shorter, more transparent and localised networks.
Produce can be scarce
Ocean-freight backlogs, container shortages and port disruptions have made staples like specialty cheeses, olives or off-season produce scarce and unpredictable in price.
MAMAs Dining Group co-founder and CEO Thai Ho says imported products “often come with a higher price tag, so we’ve come to value Australian-made more than ever”.
“There’s a trust and reliability that comes with working closely with local providers.”
To survive, many operators are overhauling menus to lean into what’s readily available and sustainable, often seasonal and regionally grown ingredients that reduce exposure to volatile shipping costs and carbon-intensive logistics.
Dishes built around Australian grass-fed beef, heirloom tomatoes from nearby farms or native bush herbs not only cut risk but resonate with diners increasingly conscious of provenance and environmental impact.
Perhaps the most noteworthy outcome of deglobalisation is the surge in local partnerships.
Ho says recent world events “have made local collaborations not only more accessible but essential”.
“With rising costs of international imports, we’ve found it more viable and rewarding to support local wineries and suppliers.
“We’re currently working on a new co-branded wine in collaboration with a local winery, showcasing varietals our guests already love from their own backyard.”
Beyond beverages, “even when opening new restaurants now, we find ourselves increasingly turning towards local equipment suppliers”, Ho says.
Many benefits are available
MAMAs recently did a full kitchen fitout cheaper and more efficiently using higher quality products from an Australian company that had on-ground support.
The benefits, Ho says, extend beyond cost savings: faster turnaround, clearer communication and fewer logistical hurdles.
London-based Pearl Lemon Catering’s Australian arm has turned supply chain fragility into a strategic asset by forging closer ties with local farmers and producers that help insulate the company from import delays.
“We have noticed many diners are beginning to prefer and gravitate towards the use of products from local suppliers and this new mindset and shift toward local food sourcing has been the silver lining at this time,” a spokesperson says.
So, is deglobalisation a temporary retreat or the new normal?
WEF suggests “re-globalisation” combining strategic global links with local collaborations is more likely than full scale deglobalisation.
For Australian restaurants and hospitality businesses, this means continuing to cultivate local partnerships, being creative with menus that rely on seasonal, local ingredients, while retaining the agility to tap into global innovation where it makes sense.
Thai Ho sees it as the way forward for many hospitality businesses.
“It not only makes access to produce more efficient but also delivers better value.
“Local suppliers often offer more competitive pricing, fresher ingredients and greater reliability.
“Australia is home to some of the best produce in the world and it just makes sense to tap into it.”
How to embrace deglobalisation
- Conduct a supply chain audit. Identify which ingredients, equipment or consumables pose the greatest risk if delayed. Source Australian alternatives or regional partners in New Zealand or Southeast Asia.
- Forge partnerships with farmers and artisans. Establish direct-buy programs with local growers, vintners and dairies. Co-branding opportunities can also elevate brand stories and margins.
- Embrace seasonality and flexibility. Train kitchen teams to rotate menus rapidly in response to seasonal ingredients to highlight freshness and reduce reliance on imports.
- Invest in local cold chain and storage. Upgrades to refrigeration, blast chillers and on-site warehousing allow bulk purchases from nearby producers.
- Communicate local credentials. Promote local collaborations and green credentials on your signage, menus and social media.
