bps presentation, greenbelt fund - pricing
TRANSCRIPT
Food Distribution
Franco Naccarato
Program Manager
Greenbelt Fund
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Local Food:
If you ask for it,
It will come.
If Only It Were So Easy!
BPS
Decision Makers
• Policy DecisionsPresident /
CEO
• Contract Negotiations
• RFPs, Distributor SelectionDirector Food
Service
• Weekly Orders
• Menu CreationChefs, Dietitian,
Purchasers
Corporate
Decision Makers
• Policy DecisionsPresident / CEO/ VPs
• Contract Negotiations
• RFPs, Distributor SelectionPurchasing Directors
• Weekly Orders
• Menu CreationChefs, Dietitian,
Purchasers
Independent Operators
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• Policy DecisionsPresident/Director/ Chef/ Purchaser
• Contract Negotiations
• RFPs, Distributor SelectionPresident/Director/ Chef/ Purchaser
• Weekly Orders
• Menu CreationPresident/Director/ Chef/ Purchaser
Overcoming
Price
Case Cost vs Food Cost
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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
Menu Pricing
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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
CasePrice per
Portion
Quantity of
Portions Portion CostCase Price
Increasing Case Cost
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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
CasePrice per
Portion
Quantity of
Portions Portion Cost
Unit of
Messure
Product Loss
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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
CasePrice per
Portion
Quantity of
Portions Portion Cost
BBQ Pepperoni Pizza
Increase Waste 5%
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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
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
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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
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Learn More
http://ontariofresh.ca/news-resources/tags/green-papers
Share your story, join the conversation:
#localfoodsolutions
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“If you keep doing what
you’ve always done,
You’ll keep getting what
you’ve always got”
- W.L.Bateman
Thank YouFranco Naccarato
Program Manager
www.Ontariofresh.ca
@loocalfoodfranco
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