How digital ordering platforms can help restaurants reduce food waste
Globally, food waste is a tremendous problem. And while much of the efforts around curbing food waste are aimed at consumers, restaurants too are feeling the need to cut back wherever possible. The following statistics are eye-opening:
According to the Walden University study Ways to Reduce Restaurant Industry Food Waste Costs, 4-10% of food products purchased by restaurants are never served to customers.
The same study found that approximately $162 billion of food generated in restaurants is wasted, and 30-40% of food served to customers is never eaten.
Meanwhile, The Business Case for Reducing Food Loss and Waste: Restaurants shows that when restaurants invest in reducing food waste, 89% recoup their investment within two years.
From any standpoint – environmental, business, or aligning with current restaurant trends – reducing food waste makes sense. And, with the right tech tools, it can be easier than QSR operators realize. In this article, we’ll explain how digital ordering platforms can help restaurants operate more efficiently and thus reduce the amount of food waste they create.
Change is already coming to the restaurant industry
While the problem of food waste has been around for a long time, the restaurant industry has been inventive in coming up with ways to combat it using technology. Apps have sprouted up that let consumers buy “leftovers'' at the end of food service shifts for a hefty discount; ordering platforms are being built to improve the accuracy of food service orders, eliminating waste due to mistakes. And tech-enabled digital kitchens integrate inventory management with production and customer-facing apps to closely track the status and use of food products.
For many restaurant operators, though, the customer-facing ordering platform is the last piece of the digital kitchen puzzle. Not only do such platforms allow customers to place orders online or in-app, they also provide a wealth of valuable data – data that can be used to cut down on food waste.
How digital ordering platforms can reduce food waste
There are several ways that digital ordering platforms can reduce food waste:
Streamlining orders and reducing errors
We mentioned earlier that food service workers can use digital tools to automate parts of their ordering process, which leads to a reduction in the number of mistakenly ordered food products. This principle also works in customer-facing ordering platforms. When customers place their orders directly, food waste from mistakes made by workers taking orders is reduced.
With data from a digital ordering platform, it’s also easier to find trends in orders. This allows QSR operators to streamline their food preparation process and minimize the amount of wasted ingredients.
Using demand forecasting to regulate item production
QSR operators can also use digital order data to practice demand forecasting. For example, they might notice a rise in certain items around certain times of year. Or they might see that certain items are often ordered together. On the other hand, they may also see items that are rarely ordered, or are only popular during the holiday season, etc.
Using this information, kitchen managers can fine-tune food production to accommodate the peaks and troughs of demand, which will allow them to order and schedule food prep accordingly. This will reduce waste caused by overproducing various menu items.
Optimizing kitchen workflows and inventory management
Similarly to the above point, the data from ordering platforms can help QSR operators plan kitchen workflows for maximum efficiency. Ordering data can also be used to automate inventory management, which can help reduce waste from expired ingredients.
Enabling dynamic pricing on slow-moving items
Finally, ordering data can help managers pinpoint slow-moving menu items. Even more helpfully, it can use dynamic pricing strategies to reduce the price on these items and get them moving more quickly – once again reducing waste.
With all of these benefits, it may seem like digital ordering platforms should be part of the standard QSR tech stack. What has stopped some restaurant chains from adopting them?
Digital ordering platform challenges and considerations
The most obvious considerations with implementing digital ordering platforms are expense and integration. We don’t need to belabor the point that integrating a new piece into your existing tech environment can be time-consuming and error-prone, at least initially. And expense is always a concern.
However, there are a few additional areas to consider when selecting a digital ordering platform:
How will this impact the current user experience of our website or app? Will we be able to customize it to meet our customers’ needs?
How will this work with our delivery systems and in-house ordering systems (both on the counter and at the kiosk, if applicable)?
If we offer food delivery through an ordering platform, how will we fulfill those orders? If we use a third party delivery service, will we be able to control the quality of delivered food?
How can we encourage customers to use online or in-app ordering? When is it appropriate to do so?
Fortunately, finding an experienced ordering platform partner like Tillster can help QSRs navigate the challenges associated with implementing a digital ordering platform. If you’d like to understand your ordering platform options, contact us today.
Digital ordering for sustainability and success
Reducing food waste is a major part of running an environmentally sustainable restaurant. It’s also an important part of making restaurants financially sustainable. In the end, eliminating food waste more than repays the efforts we put into it. And as we’ve seen, digital ordering platforms provide several ways to operate more efficiently on a number of levels. If you haven’t adopted a digital ordering platform yet, we strongly encourage you to consider it. Your budget and the planet will thank you.
