Building a low waste foodservice operation can help c-store retailers reduce food costs.
In foodservice, there is always discussion about cost inflation and the fact that you can only raise prices so much. This is true, but there is a whole world of opportunity to mitigate cost inflation by taking a laser focused look at what you are buying, how you are using those products and what alternatives are available to you. It is important to be adaptable to changes that will help reduce food costs, and not affect the consumer in any way.
Here are six strategies for building a low waste operation.
1. Eliminate products that the consumer is not eating.
Trying to be everything for everybody is a daunting task and is so unnecessary considering that the consumer wants to eat and drink what an operator does well. Menu items that are low sellers are the ones that are likely not great and result in excessive waste. In addition, there is a tendency to try to provide greater value to the customer by adding things that they do not eat and thus end up in the trash. A good example is a company that sells pizza and makes their own dough. Unfortunately, they are purchasing frozen breadsticks and serving one with each of their Italian entrees. Most of these breadsticks end up in the trash. The operator needed to make quality breadsticks from their pizza dough or simply eliminate breadsticks in general. The consumer clearly would not miss them.
2. Develop multiple uses for perishable items.
Perishable products, such as produce and proteins, require a lot more thought than long shelf-life ingredients. The easiest solution is to receive these products more often, but adding deliveries from distribution adds cost. It is crucial to use ingredients (SKUs) for multiple uses to avoid waste. If a perishable ingredient is a low-volume item, it is best that it be replaced with something else. It is important to remember that further processed items, such as sliced mushrooms, may save you money in labor, but at the same time, will cost you money in waste if not used in multiple recipes. There is a lot to think about when it comes to deciding on which items to purchase and how to use these products.
3. Purchase higher yielding ingredients.
There is a tendency to purchase ingredients based upon what has been purchased in the past. There are many new ingredients as well as pack sizes that should go into the equation. In addition, price is perceived to be the key to what is purchased and, in many cases, the least expensive is the most expensive. A small pepper for instance, yields so much less than a large pepper. Yes, it does cost more, but does it really? An Arcadian lettuce blend is more expensive than a Spring mix. It costs a little more but yields significantly more because it is fluffier. It is important to know what is available and be open minded to change.
From Kinetic12’s Q3 Emergence Restaurant Chain Group Report
4. Develop multiple uses for scratch products.
Keeping menus simple has been a calling since the beginning of the pandemic and has remained crucial to the success of foodservice. Quite a bit of scratch preparation has been replaced with speed scratch, but signature scratch items remain, and it is important to maximize their use to avoid waste. There is the opportunity to cross-utilize recipes within the same category (pizza, calzones, sandwiches) or to take bold ingredients, such as a pesto, and use them in multiple menu categories by incorporating them into mayo, sour cream, ranch dressing and more.
5. Use the right products for the job, even if it appears to cost more.
What is the right product? In many cases, it is not the least expensive product. It really comes down to how much prep is involved, what is being used and what is going into the trash. In the broccoli example below, if florets are all you are using, it would be the best option. If you are purchasing chicken breasts, which require a team member to trim the fat and they are throwing half an ounce per breast of chicken in the trash with the fat, it would be better to buy a pre-trimmed breast. These are not easy decisions, and they require analysis, but it can have a major impact on waste and ultimately your food cost.
6. Take emotion out of the equation.
The consumer truly dictates what an operation should be doing. What they are looking for and what they are willing to pay should be closely monitored. Data analytics continues to be the most important technology being used to understand the consumer. Creative foodservice leaders have in mind what is most important when innovating, but is the operator getting credit? Does the consumer really know that the fish and chips they are eating is made with cod vs. pollock? The batter is what they tend to notice. There are so many examples of this. Emotional decisions can lead to excessive waste and unnecessary spikes in food cost.
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Bruce Reinstein is a partner with Kinetic12 Consulting, a Chicago-based Foodservice and general management consulting firm. The firm works with leading foodservice operators, suppliers and organizations on customized strategic initiatives as well as guiding multiple collaborative forums and best practice projects. Learn more at Kinetic12.com or email Bruce at [email protected].
