Category: Uncategorized

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Freshly Picked, August 28, 2023

Alerts & What’s Trending

Produce

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Several markets saw an immediate impact due to Tropical Storm Hilary’s damage; however, growers are still assessing the damage as they could not enter fields due to the rainfall. At this time, we know some areas were affected more than others. Out of the Salinas Valley, supplies remain steady across most commodities.

Grains

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As the weather returned to being extremely hot and dry at this crucial period in a soybean’s life, the price of soybean oil increased once more. Demand is still very robust, particularly with regard to biodiesel. Canola is now higher than soybean oil, but Saskatchewan is once again experiencing hot, dry weather. A bit lower palm.

Dairy

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Markets for shell eggs are expanding, and California is starting to hike prices. Markets for cheese and butter are both still rising this week but may level out the next week. Prices for Culture and Cream will remain unchanged or slightly higher.

Beef

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Packers are in an excellent position and should be able to maintain prices. Tenders and ribs remain firm, replacement costs have risen slightly, and strips have temporarily improved. Processors, grinders, and retailers’ interest encourage end cuts’ stable to stronger tones. Grinds exhibit a constant tone and a variety of options.

Pork

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In anticipation of Labor Day, butts will continue to advance starting the following week. For the coming week, ribs are comparatively flat, while loins are somewhat down. After going up a few weeks ago, bellies are still trending downward. Ham sales are still declining because of weak exports.

Poultry

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The south’s ongoing hot weather continues to have an impact on bird weights, which reduces supply. As supply has tightened, breast markets have become stronger, particularly in jumbo. There is a great need for and a limited quantity of tenders. Most whole birds are even. All sizes of wings are in high demand and in short supply. Dark flesh is generally constant.

Seafood

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Tilapia farm-gate prices are rising abroad. As a result, we are witnessing a month-over-month rise in pricing. As we approach the holiday season, the price of frozen farmed Atlantic salmon should remain constant. The Barents Sea season will begin the following month with lower quotas. The groundfish should become more solid because this is the lowest quota since 2009.

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Freshly Picked, August 21, 2023

Alerts & What’s Trending

Produce

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Overall markets have remained relatively steady across most commodities, even with the increased demand from schools returning. However, we may see markets increase due to Tropical Storm Hillary. We are tracking the storm that is likely to become a hurricane off the west coast of Mexico and is certain to impact summer vegetable production on the Baja Peninsula, and possibly some parts of California. We will be monitoring this over the next five days. Out of the Salinas Valley, supplies remain steady across most commodities.

Grains

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The U.S. growing region experienced some good rainfall and a little amount of cooling, which caused the market to go somewhat lower. Meal and soybeans dropped in price. Together with lower European seed, canola seed moved lower. Together with reduced soybean and palm oil, canola oil fell. With balanced demand and supply, palm was lower.

Dairy

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Markets for shell eggs are largely stable, but some softness persists in California markets. Markets for cheese are up this week but may remain stable for the following week. Butter markets are stable, and prices for cultured products will either be flat or slightly higher depending on the categories below.

Beef

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The market has been helped by decreased livestock inventories and lower harvest levels. Packers are in a good position with their inventories and have a positive tone. Ribs and tenders have become firmer. The market for strips is still weak, and there is a large supply. Multiple channels of interest are supporting consistent to stronger tones on end cuts. Grinds maintain their consistent tonality.

Pork

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It’s possible that butts have finished falling and may now briefly trade sideways until the days leading up to Labor Day. Retailers are becoming more interested in loins. Despite a minor fall, stomachs were still able to rise. Although demand for ribs is likely to increase over the next weeks, prices are still reasonably stable.

Poultry

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The south’s hot weather has continued to have an impact on the declining supply of birds. Breast markets have improved as supply has become more limited, particularly in jumbo. Tenders are still in short supply and in high demand. Most whole birds are even. All sizes of wings are in high demand and in short supply. Due to strong demand, dark meat is stable.

Seafood

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The season for snow crabs was extended to the end of August. Overseas, tilapia replacement costs are rising. Although there is a large supply of imported shrimp, demand is increasing. The market for lobster tails is expanding. Lobster landings in Canada are declining year over year and there is a shortage of larger sizes.

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Freshly Picked, August 14, 2023

Alerts & What’s Trending

Produce

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We have continued to see national demand increase as the new school year begins resulting in slightly higher markets across many commodities. We should continue to see this trend over the next few weeks. Supplies continue to remain good across most commodities, but iceberg supplies remain light.

Grains

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Weather has improved in the growing region for soybeans, so soybean oil futures fell last week; although, biofuel demand is high keeping volatility high. Canola is lower with pressure from lower soybean oil and European Canola. Palm also moved lower with pressure from soybean oil, but also due to increasing stocks.

Dairy

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Shell Egg markets mostly steady, however some softness continues in California markets. Cheese markets rally this week but could stay firm for next week. Butter markets are steady. Cream and Culture pricing will be flat to slightly up depending on categories listed below.

Beef

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Market activity is mixed, as reduced harvest, reduced demand, and higher cattle prices appear to be impacting market confidence. Middle meat is steady. Tenders and ribs have firmed. Interest is flat on loin cuts but may garner attention w/ the rib showing gains. End cuts continue to show a steady balance. Grinds continue to reflect mixed offerings and a steady tone.

Pork

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Bellies continue to be the driver of gains, while the remaining primal’s are seeing declines. Butts are continuing their race to the bottom, with loins following suit. Ribs continue to trend downwards and should continue on that trend until we get closer to Labor Day. Green hams continue to trend up with strong exports to Mexico.

Poultry

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Hot weather in the south continues to affect bird weights. Breast markets have started to strengthen as supply has tightened. Tenders are strengthening and are still in short supply. Whole birds are mostly even. Wings of all sizes are in high demand and supply is very tight. Dark meat is steady on solid demand.

Seafood

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Snow crab season is closing mid-August and pricing is firming up. Any remaining inventories of Russian King Crab should be depleted. Operators looking for replacements should look to S. American Santolla Crab and Golden King Crab as a sub. Imported shrimp inventories are at equilibrium.

Direct and Indirect Spend

The Differences Between Direct and Indirect Spend

Multi-unit restaurant operators face the continual challenge of balancing the delicate equation between providing top-notch dining experiences and maintaining healthy profit margins. One critical aspect that directly impacts a restaurant’s financial health is spend management, where understanding the distinctions between direct and indirect spend plays a pivotal role.

While the terms “direct” and “indirect” might sound straightforward, their application within the context of foodservice procurement can be multifaceted and nuanced. By gaining a comprehensive understanding of these differences, operators can make informed decisions, optimize resource allocation, and pave the way for sustainable growth and success in this dynamic industry.

What is Direct Spend?

Direct spend refers to the procurement of goods and services that are directly involved in the production and preparation of food and beverages for a restaurant or food establishment. These are the expenses incurred on items that are essential for the core operations of the business.

Examples of Common Direct Spend Categories:

Food ingredients: This includes all the raw materials and ingredients used in cooking and preparing dishes, such as vegetables, meat, seafood, spices, and other essential food items.

Beverages: The cost of purchasing beverages, such as soft drinks, alcoholic beverages, coffee, and tea, falls under direct spend.

Kitchen equipment and utensils: Expenses related to acquiring and maintaining kitchen equipment like ovens, stoves, refrigerators, knives, and other utensils are considered direct spend.

Packaging and disposables: Costs associated with containers, takeout boxes, napkins, and other disposables used to serve food directly to customers.

Cleaning supplies: The expenditure on cleaning products and hygiene essentials for maintaining kitchen and dining areas.

Direct spend is a crucial aspect of foodservice operations and managing it efficiently can contribute to cost control and ultimately impact the profitability and success of a restaurant or foodservice establishment.

What is Indirect Spend?

Indirect Spend refers to the procurement of goods and services that are not directly involved in the production and preparation of food and beverages but are essential for the overall functioning and support of the restaurant or food establishment. These are the expenses incurred on items that are necessary for the smooth running of the business but are not directly related to the core operations.

Examples of Common Indirect Spend Categories:

Facility maintenance: Expenses related to maintaining the physical infrastructure of the restaurant, such as repairs, renovations, and upkeep of the building and equipment.

Cleaning and janitorial services: The cost of outsourcing cleaning services for the restaurant premises, including regular cleaning and deep cleaning.

Office supplies: Expenditure on items like paper, pens, printer ink, and other office essentials used for administrative purposes.

Marketing and advertising: Costs associated with promoting the restaurant, including advertising campaigns, social media marketing, and promotional materials.

Staff training and development: Expenses related to training programs, workshops, and educational materials for employees to enhance their skills and knowledge.

Utilities: The costs of utilities like electricity, water, gas, and internet services required to run the restaurant.

Insurance: Payments made for various types of insurance coverage, such as property insurance, liability insurance, and worker’s compensation insurance.

Indirect spend, while not directly impacting the food preparation, plays a vital role in the overall efficiency and success of the foodservice business. Proper management of indirect spend can contribute to cost savings and improve the overall performance of the restaurant.

What is the difference between Direct and Indirect Spend?

Definition of direct vs. indirect spend

Examples of direct and indirect spend

Direct and indirect spends impact on core operations

Indirect and direct spend related to procurement

direct and indirect spend management

How do I manage my direct and indirect spend?

Managing direct and indirect spend for multiple locations as a multi-unit restaurant operator requires careful planning, coordination, and a centralized approach to procurement. Here are some strategies to effectively manage direct and indirect spend across multiple restaurant locations:

Leverage Technology and E-Procurement: Implement e-procurement systems and technology to streamline the purchasing process. E-procurement can centralize supplier databases, automate purchase orders, and facilitate electronic invoices, making it easier to manage spend efficiently.

Centralized Procurement: Establish a centralized procurement team or department responsible for managing purchasing decisions for all locations. Centralizing purchasing allows for better coordination, leverage in negotiations, and streamlined processes.

Standardized Supplier Agreements: Negotiate standardized supplier agreements that cover all locations. This approach helps in securing consistent pricing, terms, and conditions, reducing the risk of variation in spend across different locations.

Implement Spend Analysis and Reporting: Utilize spend analysis and reporting tools to track and analyze spending across all locations. This data-driven approach enables you to identify spending patterns, areas of potential cost savings, and opportunities for consolidation.

Supplier Consolidation: Whenever possible, consolidate suppliers across multiple locations to negotiate better pricing and terms. By sourcing from a smaller number of trusted suppliers, you can achieve economies of scale and reduce administrative overhead.

Group Purchasing Organizations (GPOs): Consider joining a Group Purchasing Organization to pool purchasing power with other restaurant operators. GPOs negotiate contracts with suppliers on behalf of their members, enabling access to better pricing and deals.

Regular Reviews and Audits: Conduct regular reviews and audits of spending to ensure compliance with procurement policies and identify any discrepancies or areas for improvement.

Implement Budget Controls: Set clear spending budgets for each location and monitor adherence to those budgets closely. Implement approval processes for purchases exceeding a certain threshold to maintain financial discipline.

Training and Communication: Train and communicate with restaurant managers and staff about spend management policies, cost-saving initiatives, and the importance of adhering to centralized procurement guidelines.

Share Best Practices: Facilitate communication and collaboration between restaurant managers across different locations. Share best practices and successful cost-saving strategies to foster continuous improvement.

Sustainable and Ethical Sourcing: Emphasize sustainable and ethical sourcing practices across all locations to align with consumers’ increasing demand for environmentally conscious businesses.

Stay Updated on Market Trends: Stay informed about market trends, pricing fluctuations, and emerging technologies that can further optimize your spend management across multiple locations.

By implementing these strategies and maintaining a centralized approach, multi-unit restaurant operators can effectively manage direct and indirect spend, optimize costs, maintain consistent quality, and drive sustainable growth across their restaurant locations.

By becoming a member of Consolidated Concepts, you can empower your staff to enhance their procurement process, improve cost efficiency, and focus on providing exceptional dining experiences across all locations.

With access to our trusted network of suppliers, restaurant operators can navigate the complexities of direct and indirect spend more effectively and achieve sustainable growth in a competitive industry. As a Group Purchasing Organization (GPO), we wield the collective buying power of multiple restaurants, unlocking exclusive savings on all your supplies, from fresh ingredients to essential services. Say goodbye to procurement headaches and embrace our centralized approach, ensuring consistency, accountability, and data-driven insights that’ll keep your business thriving.

 

supply chain management

Smart Supply Chain Management: Key Strategies for Efficiency

Are you effectively managing the culinary maze that is the foodservice supply chain?

As the restaurant industry rides the waves of relentless evolution, staying afloat and thriving demands more than just culinary expertise and exceptional service. In this fast-paced and fiercely competitive landscape, the mastery of cutting-edge supply chain management strategies has become the secret ingredient for multi-unit restaurant operators looking to gain an edge over the competition.

Successful restaurant operators must skillfully manage their supply chain to ensure that the freshest ingredients, top-quality products, and essential resources reach each restaurant location precisely when needed. But in today’s data-driven landscape, relying on intuition alone is no longer enough. Smart operators know that embracing innovation and technology is the compass that points towards supply chain success.

smart supply chain management

What is restaurant supply chain management?

Restaurant supply chain management refers to the systematic and strategic coordination of all activities involved in sourcing, procuring, producing, and delivering goods and services required to operate a restaurant successfully. It encompasses the entire process of managing the flow of materials, products, and information from suppliers to the restaurant’s final customers.

The goal of restaurant supply chain management is to ensure a seamless and efficient flow of goods while minimizing costs, reducing waste, and maintaining the highest quality standards. It involves various critical aspects, including:

  1. Sourcing and Procurement: Identifying reliable suppliers, negotiating contracts, and procuring the necessary ingredients, equipment, and other resources needed for restaurant operations.
  2. Inventory Management: Monitoring and controlling inventory levels to prevent stockouts and reduce excess inventory, optimizing storage space and minimizing costs.
  3. Logistics and Distribution: Efficiently transporting goods from suppliers to individual restaurant locations, optimizing delivery routes, and ensuring timely deliveries.
  4. Quality Control: Establishing rigorous quality standards and implementing processes to ensure that all incoming goods meet the required quality and safety criteria.
  5. Demand Forecasting: Analyzing historical data and market trends to predict customer demand accurately, helping avoid stockouts or overstocking.
  6. Cost Management: Finding cost-effective solutions without compromising quality, including optimizing sourcing, transportation, and storage expenses.
  7. Sustainability and Eco-conscious Practices: Incorporating environmentally friendly practices, such as sourcing locally, reducing packaging waste, and supporting sustainable agriculture.
  8. Technology Integration: Adopting innovative technologies, such as supply chain management software and data analytics tools, to streamline processes and gain real-time insights.
  9. Crisis and Risk Management: Develop contingency plans to address potential disruptions in the supply chain, such as natural disasters, supplier issues, or economic fluctuations.

Effective restaurant supply chain management is essential for multi-unit restaurant operators, as it ensures consistency across different locations, enhances customer satisfaction, and boosts profitability. By optimizing the supply chain, restaurant owners can focus on their core business activities, ultimately leading to increased operational efficiency and long-term success.

supply chain management strategies

10 Restaurant Supply Chain Management Best Practices

Implementing effective strategies for restaurant supply chain management can significantly enhance operational efficiency and contribute to the overall success of the business. Break the chains of conventional thinking and embrace the power of smart supply chain management with these 10 key strategies:

  1. Data-Driven Decision-Making: Gone are the days of traditional, gut-feel-based decision-making. Leverage data analytics and technology to gain insights into customer demand, inventory levels, and supplier performance. Analyzing historical data and trends can help with accurate demand forecasting and inventory optimization, reducing wastage and ensuring sufficient stock availability.
  2. Supplier Relationship Management: Cultivate strong relationships with reliable suppliers who can consistently provide quality products at competitive prices. Negotiate favorable terms and establish open communication channels to address any potential issues promptly.
  3. Centralized Procurement: Centralize procurement functions to streamline purchasing decisions and take advantage of economies of scale. By consolidating purchasing across multiple locations, restaurants can negotiate better prices and reduce administrative costs.
  4. Inventory Control and Just-in-Time (JIT) Approach: Implement JIT inventory management to minimize storage costs and prevent excess inventory. Keeping inventory levels lean while maintaining a well-coordinated supply chain ensures fresh and high-quality ingredients are readily available.
  5. Technology Integration: Invest in supply chain management software and tools that offer real-time tracking, inventory management, and reporting capabilities. These technologies help automate processes, improve accuracy, and enable better decision-making.
  6. Sustainability and Local Sourcing: Embrace sustainable practices and prioritize locally sourced ingredients. Customers increasingly value environmentally conscious restaurants, and sustainable sourcing can also reduce transportation costs and support local communities.
  7. Risk Management and Contingency Planning: Develop contingency plans to address potential supply chain disruptions, such as natural disasters, transportation delays, or supplier issues. Having backup suppliers and alternative logistics options can help mitigate risks effectively.
  8. Streamlined Logistics: Optimize transportation and distribution processes to minimize delivery times and costs. Consider partnering with logistics providers that specialize in the restaurant industry to ensure efficient and reliable deliveries.
  9. Collaborative Communication: Foster clear and open communication between different stakeholders in the supply chain, including suppliers, distributors, and restaurant managers. Effective communication facilitates problem-solving and ensures everyone is aligned with the overall goals.
  10. Continuous Improvement: Regularly review and assess supply chain performance to identify areas for improvement. Encourage feedback from employees and customers to stay agile and adapt to changing demands and preferences.

By adopting these strategies, restaurant owners and operators can create a well-organized, efficient, and resilient supply chain that delivers fresh, high-quality ingredients to their establishments consistently. A well-managed supply chain not only reduces operational costs but also enhances customer satisfaction and contributes to the overall success and growth of the restaurant business.

It’s evident that the power of data, technology, and innovation is reshaping the restaurant supply chain. The complexities of sourcing, logistics, and inventory management demand a data-driven and technology-enabled approach to ensure efficiency, cost-effectiveness, and customer satisfaction.

Embracing these strategies equips restaurant operators with the tools needed to navigate any future challenges that lie ahead, safeguarding their business against disruptions and enhancing their ability to deliver consistent excellence.

With a serious commitment to continuous improvement and innovation, the path to success in restaurant supply chain management becomes clearer, guiding them towards a future of sustainable growth and triumph.

 

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Freshly Picked, August 7, 2023

Alerts & What’s Trending

Produce

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National demand continues to see an increase and is expected to pick up considerably in the next few weeks as schools resume, which will likely cause a bump in markets over these few weeks. Temperatures in the Salinas Valley have declined to normal temperatures for this time of the year.

Grains

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Canola was flat with farmers selling seeds. Soybean futures were nearly 6% higher again last week as hot weather persists. Palm followed the soybean oil market.

Dairy

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Butter and cheese markets both continue to increase, with more bullish overtones for the week. Shell egg markets remain steady. Cream & Culture pricing will be flat to slightly up.

Beef

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End cuts continue to show a steady balance. Cattle markets are focused on calf prices to build incentives for herd expansion. Droughts and record-high hay prices are a problem.

Pork

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Ribs and loins continue to decline. Butts are still down. Bellies, hams, and trimmings continue to increase.

Poultry

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Bird weight is being kept down due to high temperatures in the South, which is limiting production. Expect a tight-wing and tender market to continue. Dark meat is steadily in demand. Supply is tight on wings. The breast market has started to strengthen as supply has tightened.

Seafood

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Snow crab season extended in multiple areas into August due to the full quota not being caught.

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Freshly Picked, July 31, 2023

Alerts & What’s Trending

Produce

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We are beginning to see increased demand, and will continue to increase as schools resume in two weeks. Furthermore, we will continue to see markets rise due to the weather effects (rain, cooler and hot temperatures) in several growing regions affecting yields.

Grains

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Futures for soybean oil increased once more. Numerous market pundits have predicted that this market is close to its peak and is about to undergo a slump. Weather issues and the consequences of the collapse of the grain deal between Russia and Ukraine led to poor crop scores. Canola is up because of the dry, hot weather in Canada, while palm is moving because of the demand for soybean oil.

Dairy

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Markets for shell eggs are stable nationwide; those for cheese and butter are rising as a result of rising demand and constrained supply; those for cream and culture will only see slight price rises in July; and those for processed eggs will experience a decline.

Beef

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The industry is waiting to see the effects as the weather continues to heat up across the nation. Select grade continues to struggle, while middle meat interest is considered as steady, and packers are working to keep the price gap between CAB and Choice. End cuts seem to have achieved a stable supply-demand equilibrium. Grinds may profit most in the next weeks as a result of the reduced harvest; sadly, mixed offers are maintaining the consistent tone.

Pork

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As is customary during the Fourth of July holiday, butts are still declining week over week. The rib complex has decreased as anticipated after being largely flat the previous few weeks. This week, there were minor declines in boneless loins but no changes in bone-in loins. Large cold storage supplies are causing a surge of bellies, hams, and trimmings.

Poultry

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As supply has become more constrained, breast markets have begun to strengthen. Tenders are getting stronger but are still hard to come by. Most whole birds are even. All sizes of wings are getting stronger, therefore supply is likely to become constrained. Due to strong demand, dark meat is stable.

Seafood

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Soft demand across the nation for frozen seafood has resulted in prices plateauing as a result of warehouses’ excess stock. Due to a delayed start to their season, the snow crab season in Newfoundland and Labrador has been prolonged until the end of July, although costs are increasing for all snow crab.

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Freshly Picked, July 24, 2023

Alerts & What’s Trending

Produce

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Overall, markets were somewhat steady as demand was slightly lower than anticipated across most commodities but is expected to increase in three weeks when schools begin. Due to the weather effects (rain, cooler and hot temperatures) in several growing regions affecting yields, we will likely see markets begin to rise. Weather continues to increase in the Salinas Valley, helping increase the maturity rate of the crops.

Grains

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The reported reduced soybean oil stocks and the bad crop scores caused soybean oil futures to surge upward once again last week. The price of soybean oil futures has increased by approximately 30% in recent weeks. With the weather being hotter and dryer than usual, canola seed futures climbed higher once more. Markets for palm oil declined as stocks rose.

Dairy

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Shell egg markets are stable due to stable demand. California eggs are still marginally declining. Due to rising demand, the markets for cheese and butter are also up. For July, there will be slight price hikes for cream and culture. A drop in processed eggs will be seen in July as avian influenza is not a concern at this time.

Beef

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The unpredictability of the market continues to be the balance between weekly harvest and demand. As select grade continues to deteriorate, middle meats like ribs, strips, and tenders are attempting to maintain a balanced price between CAB and Choice. End cuts, chucks, and rounds seem to be in a precarious position as purchasers have met their needs and are now watching to see how the market develops.

Pork

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Butts continue to decrease week over week. Although remaining flat, the rib complex is beginning to slope downward. Similar to the ribs, loins had slight decreases but remained flat. Despite growth, the price of bellies, hams, and trimmings continued to decline due to abundant cold storage supply.

Poultry

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As supply has become more constrained, breast markets have begun to strengthen. Tenders are still scarce and continue to hold. Most whole birds are even. Smaller wings are equally as plentiful as jumbo and medium wings. Due to strong demand, dark meat is stable.

Seafood

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The frozen fish business has not experienced any significant occurrences, thus the price of raw materials has remained constant month over month. Frozen food warehousing, which has a significant impact on pricing, is still at capacity and available space is being sold for a premium. Compounding the problem is the soft demand for these goods.

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Freshly Picked, July 17, 2023

Alerts & What’s Trending

Produce

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Overall demand is expected to rise over the next few weeks, which will likely keep markets active due to current weather effects (rain, cooler and hot temperatures) in several growing regions affecting yields. Weather is warming up in the Salinas Valley, which is helping increase the maturity rate of the crops.

Grains

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Soybeans oil futures soared, but settled almost flat on the week; prices are still very high and are expected to move higher. The USDA reported soybean oil inventories lower than expected. The good news is that the US got some rains. The bad news is that the canola has moved up as they are facing drought. Europe is facing drought as well.

Dairy

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The shell egg market is stable as the market prices are stable; California only experienced a slight decrease. The cheese and butter market is turning bullish, led by European markets. The prices of cream and Culture are increasing slightly in July.

Beef

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The tone is weak and there’s a lot of pressure for packers to figure out how to balance demand with weekly harvest figures. Ribs and tenders continue to struggle as demand slows down into the tail-end of summer. Strips continues to surprise. More on CAB vs. Choice. Limited supply continues to play a big role here. End cuts, chucks and rounds are starting to weaken as more boxes come on the market.

Pork

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Butts decreased this week. Rib complex remains relatively stable but could see an increase in fresh ribs. Loins had slight gains driven by retail demand. Bellies gained with Prop 12 build-up as anticipated but remain flat year-on-year due to heavy cold stock. Hams & Trimmings gained this week.

Poultry

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Breast market is mostly balanced. Tenders are stable and still in shortage. Whole birds are balanced. Jumbo and mid-sized wings are increasing while small are balanced with plenty of supply. Dark meat stable on solid demand.

Seafood

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The scallop season has had mixed results when it comes to raw material sizes. The supply of smaller sizes is tighter than the supply of larger sizes. The availability of fish in Great Lake is variable as warmer weather pushes fish deeper into the lake. The strong stock in US warehouses has been weakening the market on a number of frozen products.

Indirect Spend

9 Ways Technology Can Help Multi Unit Restaurants Manage Indirect Spend Savings

Restaurant indirect spend savings refer to the cost reductions or savings achieved in the procurement and management of indirect expenses within a restaurant operation. Indirect spend in the restaurant industry typically includes various non-food and non-beverage-related items and services that are necessary for the smooth operation of the establishment.

Examples of restaurant indirect spend categories include:

  • Kitchen Supplies: Utensils, cookware, cleaning supplies, kitchen equipment, and appliances.
  • Tableware and Dining Supplies: Plates, glasses, cutlery, napkins, tablecloths, and other dining accessories.
  • Cleaning and Maintenance: Cleaning products, equipment maintenance services, pest control, and waste management.
  • Restaurant Supplies: Menu printing, packaging materials, uniforms, signage, and promotional materials.
  • Utilities: Electricity, gas, water, and other utility services.
  • Technology and IT Services: POS systems, software licenses, hardware maintenance, and IT support.
  • Marketing and Advertising: Advertising campaigns, online marketing, social media promotions, and printed materials.
  • Insurance and Legal Services: Liability insurance, legal consultations, permits, and licenses.

Managing indirect spend savings is a crucial aspect of operational efficiency and profitability for multi-unit restaurant brands. With the right technology solutions, operators can streamline procurement processes, optimize supplier relationships, and drive cost savings across their operations. Let’s explore various ways in which technology can empower multi-unit restaurant brands to effectively manage their indirect spend savings, enhance data visibility, and achieve greater efficiency.

Centralized purchasing made easy

E-Procurement Platforms: Centralized Purchasing Made Easy

Implementing e-procurement platforms provides multi-unit restaurant brands with a centralized approach to purchasing. These platforms offer online catalogs, automated ordering, and electronic approval workflows, reducing manual efforts and improving efficiency. With a centralized system, restaurant brands can consolidate purchasing activities, standardize procurement procedures, and negotiate better pricing and terms with suppliers. E-procurement platforms also enable better visibility into spending patterns and provide valuable insights for cost reduction opportunities.

Harnessing the Power of Spend Analysis Tool

Harnessing the Power of Spend Analysis Tools

Spend analysis tools play a crucial role in managing indirect spend savings. By gathering and analyzing data from multiple units, these tools provide actionable insights into spending patterns, supplier performance, and potential areas for consolidation or cost reduction. With accurate and comprehensive spend analysis, multi-unit restaurant brands can identify high-performing suppliers, negotiate favorable contracts, and streamline their procurement strategies.

Efficient Supplier Management Systems

Efficient Supplier Management Systems

Supplier management systems enable multi-unit restaurant brands to maintain an organized database of suppliers, track supplier performance, and ensure compliance across all units. These systems help in managing contracts, monitoring supplier relationships, and identifying opportunities for better pricing and terms. With improved supplier management, restaurant brands can build stronger partnerships, negotiate more effectively, and consolidate their purchasing power to achieve significant cost savings.

Streamlined Inventory Management with Technology

Streamlined Inventory Management with Technology

Effective inventory management software is crucial for optimizing indirect spend savings. Technology solutions, such as inventory management software, enable multi-unit restaurant brands to track and control indirect spend items. By automating inventory processes, these tools help reduce waste, prevent stockouts or overstocking, and ensure that the right items are available at the right time. Accurate inventory data also facilitates demand forecasting, allowing for proactive purchasing decisions and cost savings through efficient inventory management.

Digital Transformation of Invoicing and Expense Management

Digital Transformation of Invoicing and Expense Management

Digital invoicing and expense management systems streamline the accounts payable process for multi-unit restaurant brands. By automating invoice processing and expense tracking, these systems improve accuracy, reduce paperwork, and provide real-time visibility into spending across all units. Digital transformation of these processes minimizes manual errors, expedites approval workflows, and enhances cost control measures. Furthermore, it enables businesses to analyze spending patterns, identify cost-saving opportunities, and make informed decisions to optimize indirect spend savings.

Empowering Unit Managers with Mobile Apps

Empowering Unit Managers with Mobile Apps

Mobile apps or platforms designed for unit managers and staff simplify the ordering process for indirect spend items. These apps allow managers to conveniently place orders, monitor budgets, and track deliveries using their mobile devices. By leveraging mobile technology, multi-unit restaurant brands empower their managers to make efficient purchasing decisions, reducing administrative burdens and improving overall procurement workflow. This real-time connectivity ensures faster response times, enhances communication between units and suppliers, and contributes to significant time and cost savings.

Unleashing Data Analytics and Reporting

Unleashing Data Analytics and Reporting

Data analytics tools provide multi-unit restaurant brands with valuable insights into spending trends, supplier performance, and key performance indicators (KPIs) related to indirect spend savings. By generating reports and dashboards, these tools enable businesses to track progress, monitor cost reduction initiatives, and make data-driven decisions. With access to real-time and actionable information, restaurant brands can continuously refine their procurement strategies, identify areas for improvement, and optimize their indirect spend management for maximum savings.

Integration with Point-of-Sale

Integration with Point-of-Sale

Integrating procurement technology with point-of-sale (POS) systems enables multi-unit restaurant brands to capture real-time sales data. This integration facilitates demand forecasting and ensures that indirect spend items are ordered at the right time, preventing excess inventory or stock shortages. By aligning purchasing decisions with sales data, restaurant brands can optimize inventory levels, reduce waste, and achieve significant cost savings. The seamless flow of information between POS systems and procurement technology enhances operational efficiency and supports data-driven decision-making for indirect spend management.

Continuous Improvement through Feedback and Adaptation

Continuous Improvement through Feedback and Adaptation

Technology solutions in indirect spend management should be flexible and adaptable to evolving business needs. Multi-unit restaurant brands should actively seek feedback from unit managers and staff regarding the effectiveness of technology systems, supplier performance, and usability. This feedback loop allows for continuous improvement, refinement of processes, and identification of new opportunities for cost savings. By listening to the needs of their teams and staying receptive to technological advancements, restaurant brands can stay ahead of the curve and ensure their indirect spend management remains efficient and optimized.

Managing indirect spend savings in a multi-unit restaurant brand requires a comprehensive approach that harnesses the power of technology solutions. E-procurement platforms, spend analysis tools, supplier management systems, and other technology solutions enable centralized procurement, streamline processes, and enhance data visibility. By integrating technology into their operations, multi-unit restaurant brands can optimize indirect spend savings, drive cost reductions, improve operational efficiency, and enhance overall profitability.

Embracing technology as a strategic enabler empowers restaurant brands to stay competitive in a dynamic and evolving industry while delivering exceptional dining experiences to their customers.