NCCO International As food prices continue to rise, restaurants and foodservice businesses are struggling more than ever. From skyrocketing ingredient costs to increased labor expenses, managing a restaurant in today’s economy requires ingenuity, strategic planning, and the right tools. While it may seem challenging, investing in the right solutions can help mitigate these costs and provide a path toward greater profitability.
Why Are Food Prices Rising?
Several factors contribute to the rising cost of food, and it’s not just inflation. Here are some key drivers of rising food prices in restaurants:
- Supply Chain Disruptions: Global supply chain issues, triggered in part by the pandemic, weather events, and geopolitical tensions, have made sourcing ingredients more difficult and expensive. This contributes to higher costs on everything from meat to produce.
- Transportation and Fuel Costs: Fuel prices directly impact the cost of transporting food from suppliers to restaurants. With fuel costs soaring, these transportation expenses have only increased, which in turn raises the overall cost of food.
- Weather Events and Crop Failures: Extreme weather conditions like droughts, floods, and hurricanes can wipe out crops, creating scarcity and driving up prices for things like vegetables, fruits, and grains.
- Increased Demand: As the economy recovers and consumer demand grows, especially in the post-pandemic world, the competition for food supplies has intensified. When demand exceeds supply, prices rise.
The Impact on Foodservice Businesses
For foodservice businesses, rising food prices have a domino effect on profitability. As ingredient costs rise, so too does the cost of running day-to-day operations. The challenge is not just about absorbing these costs, but also about managing them effectively (while still providing high-quality food and service to customers). For many restaurant owners, the margin for error is slimmer than ever.
How foodservice operators combat these rising prices without compromising quality or customer experience, you ask? The answer lies in embracing smart technology and operational solutions that streamline processes and reduce unnecessary waste.
How NCCO Solutions Can Help Combat Rising Food Costs
NCCO provides a range of innovative tools designed to address the pain points many foodservice businesses face. By investing in the right tools, restaurants can save money, improve operational efficiency, and reduce waste.
Here are a few key solutions that can help businesses tackle rising food costs:
1. DateCodeGenie Automated Labeling System
Food waste is a major contributor to higher operational costs. Mismanagement of inventory and incorrect labeling can lead to spoilage and unnecessary disposal of ingredients. The DateCodeGenie automated labeling system prints accurate Use By/Sell By labels and prep date labels to help minimize food waste and improve inventory turnover. This simple solution ensures that your ingredients are used in a timely manner, helping you make the most out of every purchase and saving money on unnecessary food waste.
2. Task Manager: Streamlining Operations
One of the keys to saving money in the kitchen is ensuring that all operations run smoothly. NCCO’s Task Manager kitchen task system helps foodservice businesses:
- Digitize essential tasks like food safety forms and HACCP compliance forms, cleaning checklists, and on-demand analytics. By digitizing these critical tasks, restaurants can reduce errors, ensure compliance, and eliminate the costs associated with manual processes.
- Remote monitoring for temperature control to reduce the risk of food spoilage due to improper storage conditions. One of the key contributors to food waste is improper food storage, whether it’s too hot or too cold. Task Manager ensures your food storage equipment stays within the optimal temperature range. This proactive solution helps prevent the costly consequences of spoiled food, keeping inventory safe.
3. Food Rotation Labels & Day-of-the-Week Labels
Organization is crucial to managing food costs effectively. Food rotation labels, food prep labels and Day-of-the-Week labels are essential tools in helping restaurants stay organized and efficient. With clear, easy-to-read labels, kitchen staff can quickly identify products, track usage, and avoid overordering or underutilizing ingredients. Custom labels can help streamline operations and reduce unnecessary waste.
4. POS Essentials: Register Rolls and Ribbons
A smooth point-of-sale (POS) system is essential for keeping operations efficient. By investing in register rolls and ribbons that are specifically designed for your POS needs, you can avoid unnecessary downtime and keep transactions flowing seamlessly. A well-functioning POS system reduces errors, improves accuracy, and ensures customers are charged appropriately, avoiding the cost of refunds or inventory mistakes.
Invest in Solutions for Long-Term Savings
Rising food costs are an unfortunate reality for the foodservice industry, but that doesn’t mean businesses have to struggle. By adopting the right tools and technologies, restaurants can optimize their operations, minimize waste, and streamline processes. NCCO’s suite of solutions, from automated labeling and task management systems to POS essentials and custom labels, can help foodservice operators reduce overhead costs and improve their bottom line.