Guest Blog: Food Cost and Food Waste, by Mark Surkin

Everyone is talking about food waste these days. In the US we waste up to 40% of all food produced , and the hospitality and events industry is the second largest producer of waste . 

So what can we really do about that? 

Managing food cost is a vital component to any business that produces and serves food. Food cost and food waste are inextricably linked, and in this blog post we’ll break down what those terms mean, what the challenges are, and how to mitigate those challenges, reduce waste, and impress guests.

This post is a companion piece to this episode of the Hold the Mustard Podcast, powered by Dineable. Guests Chef Nick Farrell and Lou Marrocco CMP break it down for you and share some insider stories.

Food Cost, Defined

Food cost is generally reported as a percentage of the cost of goods divided by the sale price of the item. Food cost can be reported item by item, by a specific menu or package, or overall for a business.

For example, the food cost of a simple grilled chicken dish that sells for $20 would be calculated as follows:

  • 8 oz Chicken Breast ($4)

  • + 1tbsp Olive Oil ($0.25)

  • + 1 tsp Salt ($0.01)

  • + 1 tsp Pepper ($0.01)

  • + 6oz Wild Rice ($0.75)

  • + 6oz Steamed Broccoli ($1.00)

  • = $6.02

  • 6.02 / 18 = 30.1% Food Cost

Food Waste, Defined

Food waste is a broad term. Overall, it can be defined as any food that has not been used or eaten and no longer has any way of bringing value back into the organization. 

Waste can occur in many ways, including:

  • Not fully utilizing a product or not getting a full yield - for example, inefficient butchering or discarding bones & scraps rather than using for stock.

  • Guests not finishing food served - maybe they didn’t like it, had a dietary restriction, or maybe the portion was just too big!

  • Pre-pouring beverages and pre-serving bread

  • Over-producing food to avoid running out

  • Overstocking buffets so that they appear abundant/lavish

  • Mistakes during preparation or service

Managing Food Waste and Food Cost Starts with Communication

It’s all a balancing act that’s achieved through clear and constant communication with all stakeholders. That communication works top-down, starting with the client (who represents the guests), moving to the event planners and catering managers, chefs, and service managers.

At Brandywine Events, Lou starts the conversation with venues and caterers by asking about their sustainability policy in order to understand where their priorities lie in controlling waste. From there, he is able to communicate effectively with all stakeholders in order to mitigate waste while still delivering the guest experience the client wants to achieve.

“Building a great menu is a cooperative effort between the client, the planner, and the culinary team.” --Lou Marrocco

Chef Nick always takes the time to get to know the client individually to understand goals and set expectations. By asking detailed questions to gather as much information as he can in advance, food cost can be optimized and waste can be minimized. 

“There is a massive opportunity here to reduce waste, increase the bottom line of the business, and increase guest satisfaction all at the same time.” --Nick Farrell

Some Tips & Tricks to Achieve Great Food Cost and Minimize Waste

  • Use scraps and items you’d normally discard! Stocks, sauces, salsas, pestos, salad, etc. Every bit that is utilized instead of being discarded will lower food cost.

  • Serve smaller portions. You can likely reduce that portion of steak or chicken from 8oz to 6oz without any negative impact on guest experience.

  •  It’s time to shift behavior from lavish displays to responsible buffets. For example, use smaller serving vessels. You can’t donate it once it’s been served, so keep more in the kitchen. If you’ve got an empty platter, that means people liked it and you can refill it!

  • Keep components of dishes separate for as long as possible. Serving potato salad for the lunch buffet? Keep the unseasoned potatoes and other veggies separate from the dressing until the platter needs to be refilled, then mix them together. Now any excess can be repurposed for other dishes or more easily donated to a local food rescue!

  • Plan beyond a single meal service for better bulk ordering.

  • Use tools like Dineable to facilitate and optimize communication between all event stakeholders, from guests to clients to planners to the banquet and culinary teams.

    • Get clear advance notice from guests of food allergies and other dietary restrictions to avoid over-purchasing and over-prep of commonly restricted foods like dairy, gluten, peanuts, and shellfish.

    • Facilitate better communication between event stakeholders to keep everyone on the same page and ensure accurate BEOs without endless copying & pasting, printing, and change order meetings.

There will be some food waste no matter what you do. That’s the nature of the business. But we can be so much more efficient than 40% waste simply by communicating well and planning ahead. 

Learn more from Nick & Lou on the Hold the Mustard podcast, and don’t miss the end when they share some wild stories about hockey puck scallops and a small, furry VIP.

Mark Surkin is the Founder and CEO of Dineable. Dineable offers software and consulting services to help event planners optimize opportunities for guest personalization and mitigate risk of food allergen exposure, while empowering operators to stay efficient on food cost and waste.
Email Mark at marka@dineable.com.

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Guest Blog, SustainabilityBeth LawrenceComment