BPS presentation, Greenbelt Fund - pricing
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Overcoming barriers to local food..
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BPS presentation, Greenbelt Fund - pricing
- 1. Food Distribution Franco Naccarato Program Manager Greenbelt Fund 1
- 2. Local Food: If you ask for it, It will come.
- 3. If Only It Were So Easy!
- 5. BPS Decision Makers • Policy Decisions President / CEO • Contract Negotiations • RFPs, Distributor Selection Director Food Service • Weekly Orders • Menu Creation Chefs, Dietitian, Purchasers
- 6. Corporate Decision Makers • Policy Decisions President / CEO/ VPs • Contract Negotiations • RFPs, Distributor Selection Purchasing Directors • Weekly Orders • Menu Creation Chefs, Dietitian, Purchasers
- 7. Independent Operators 7 • Policy Decisions President/Director/ Chef/ Purchaser • Contract Negotiations • RFPs, Distributor Selection President/Director/ Chef/ Purchaser • Weekly Orders • Menu Creation President/Director/ Chef/ Purchaser
- 9. Case Cost vs Food Cost 9 Case Cost Portion Cost Plate Cost Case utilization Yield of product Plate waste Case Cost – Case Utilization = Final Case Cost Cooked Weight / Number of Portions = Portion Price # Plates % Wasted /Portion Price = True Portion Price
- 10. Menu Pricing 10 PIZZA DOUGH SHEETED 10IN 50 10Z $46.37 UNITS 50 $0.93 1 $0.93 SAUCE BBQ SAUCY BOSS THICK & SWT 2 3.78L $28.04 FL OZ 96 $0.29 2 $0.58 PEPPERONI 44MM THK SLCD DRY FZN 2 3.4KG $51.71 UNITS 3360 $0.02 10 $0.15 CHEESE MOZZ SHRED 20PCT 2 2.5KG $65.22 OZ 175 $0.37 2 $0.75 Food Cost $2.41 Waste factor % 10.00% $0.24 Total food cost with waste $2.65 Menu Item Cost $10.99 Food Cost Percentage 24% Profit $8.34 Menu Item Item Description Pack Size BBQ Pepperoni Pizza Unit of Messure Portions per Case Price per Portion Quantity of Portions Portion CostCase Price
- 11. Increasing Case Cost 11 PIZZA DOUGH SHEETED 10IN 50 10Z $55.64 UNITS 50 $1.11 1 $1.11 SAUCE BBQ SAUCY BOSS THICK & SWT 2 3.78L $28.04 FL OZ 96 $0.29 2 $0.58 PEPPERONI 44MM THK SLCD DRY FZN 2 3.4KG $51.71 UNITS 3360 $0.02 10 $0.15 CHEESE MOZZ SHRED 20PCT 2 2.5KG $65.22 OZ 175 $0.37 2 $0.75 Food Cost $2.60 Waste factor % 10.00% $0.26 Total food cost with waste $2.86 Menu Item Cost $10.99 Food Cost Percentage 26% Profit $8.13 ↑ 2% Menu Item Item Description Pack Size Case Price BBQ Pepperoni Pizza Portions per Case Price per Portion Quantity of Portions Portion Cost Unit of Messure
- 12. Product Loss 12 PIZZA DOUGH SHEETED 10IN 50 10Z $56.37 UNITS 47 $1.20 1 $1.20 SAUCE BBQ SAUCY BOSS THICK & SWT 2 3.78L $28.04 FL OZ 96 $0.29 2 $0.58 PEPPERONI 44MM THK SLCD DRY FZN 2 3.4KG $51.71 UNITS 3360 $0.02 10 $0.15 CHEESE MOZZ SHRED 20PCT 2 2.5KG $65.22 OZ 175 $0.37 2 $0.75 Food Cost $2.68 Waste factor % 10.00% $0.27 Total food cost with waste $2.95 Menu Item Cost $10.99 Food Cost Percentage 27% Profit $8.04 ↑ 4% Menu Item Item Description Pack Size Case Price Unit of Messure Portions per Case Price per Portion Quantity of Portions Portion Cost BBQ Pepperoni Pizza
- 13. Increase Waste 5% 13 PIZZA DOUGH SHEETED 10IN 50 10Z $56.37 UNITS 50 $1.13 1 $1.13 SAUCE BBQ SAUCY BOSS THICK & SWT 2 3.78L $28.04 FL OZ 96 $0.29 2 $0.58 PEPPERONI 44MM THK SLCD DRY FZN 2 3.4KG $51.71 UNITS 3360 $0.02 10 $0.15 CHEESE MOZZ SHRED 20PCT 2 2.5KG $65.22 OZ 175 $0.37 2 $0.75 Food Cost $2.61 Waste factor % 15.00% $0.39 0.07 Total food cost with waste $3.00 Menu Item Cost $10.99 Food Cost Percentage 27% Profit $7.99 ↑ 4% Menu Item Item Description Pack Size Case Price Unit of Messure BBQ Pepperoni Pizza Price per Portion Quantity of Portions Portion Cost Portions per Case
- 14. Challenges for Buyers • Very little time to look for new suppliers • Very little space to bring in new products • Deal with too many suppliers • Complicated ordering process 14
- 15. Tips for Success • Know what to expect • Provide them with a solution • Make it easy to do business • Be their one stop shop/ or connect to their one stop shop • Have customers that want the product 15
- 16. Learn More http://ontariofresh.ca/news-resources/tags/green-papers Share your story, join the conversation: #localfoodsolutions 16
- 17. “If you keep doing what you’ve always done, You’ll keep getting what you’ve always got” - W.L.Bateman
- 18. Thank You Franco Naccarato Program Manager fnaccarato@greenbeltfund.ca www.Ontariofresh.ca @loocalfoodfranco 18
Editor's Notes
- What is not here is the AREA MANAGER. They are usually the link between BPS institution and the staff level of the contract caterer. This manager is key to helping negotiate and communicate wishes of the institution back to the contract caterer. In essence, they are the gatekeeper of communication.
- Some places have independents, and the basics of this is The owner usually makes all the calls. They sometimes rely on one or two other people, but usually, they are very hands on and flexible with whom they do business.
- Even though price isn’t the biggest barrier, it is one of the ones we hear the most. The truth is, price is an objection to ANYTHING new. Price is an issue, mostly when there is no trust, or knowledge about what they are buying. Usually when people talk about price differences they compare what they find at a farmers market vs what they find at the grocery store. A complete unfair match as they are not comparing apples to apples. There are a number of ways to get away from this… here is one..
- Case cost is only one piece of total Food Costs. Food Costs can be managed many different ways. If you started with 10 plates that cost $5 to make, price per plate is .50 But if you have 40% wasted (didn’t sell, got thrown out) True cost per plate is .83
- Increase about $10 or 22% resulted in net increase of 20 c per plate WITH FOOD WASTE INCLUDED..
- If you LOST 3 portions due to theft, misplacement, overcooked. This would have a increase of 30 cents on food cost
- If we increase waste by 5% on the food costs. There is an increase of 35 cents a plate