The Food Cost Guide for Beginners #1: Stop Waste with Yield

The Food Waste Elephant Dragging You Down?

The Stark Reality of Food Waste

Food waste is the worst. Paying for product just to see it get tossed in the trash. All of us have seen it, but some have learned to manage and to prevent waste from ruining our days...and businesses. "An ounce of prevention is worth a pound of cure." You've heard it before. This adage rings especially true in food waste. Champion 12.3, a group dedicated to sustainable development, highlights that restaurants can realize a 7x return on investment for every $1 spent on food waste reduction strategies. In the U.S., Move For Hunger reports, the food waste in restaurants ranges between 22 to 33 billion pounds annually. This is no trivial matter; it's a third of all global food production wasted, affecting both your bottom line and our environment.

Understanding Food Waste & Yield

Food waste, in essence, is edible food that is discarded or goes uneaten within our restaurants - it's the food you paid for that never gets gobbled up by your guest. Merriam-Webster defines yield as: the full amount of an agricultural or industrial product...BORING. In layman's terms, Yield is how much of the product is being used instead of being thrown away or lost to cooking. Using more of what you paid for is increasing your yield. More is better because you are getting higher use for the same amount of money.

Good Waste vs. Bad Waste

Yes, there is such a thing as 'good waste'! If waste is part of the cooking or preparation process that enhances the guest experience, then it is a good thing. For instance, the core of an iceberg lettuce, while part of your purchase, is typically not used. However, 'bad waste' - like discarding an entire lettuce head due to improper rotation - hits your profits and is a clear area for improvement.

Strategies to Minimize Food Waste with Yield Management

Enough with the babble. Lets get into the nitty gritty. Let's dive into a food cost strategy involving yield management:

1. Recipe Yield Management: Are your recipes yielding as they should? If a brownie recipe is supposed to yield 12 but you consistently get 9, it's a red flag. This means a 25% loss in product and a 33% increase in cost per brownie. To simplify, when you make a batch of brownies and can only sell 9 instead of 12 that's a bad thing. Annually, this can translate into a substantial cost for each product line. Make sure your recipe has a yield amount. How many gallons should it make, how many brownies, how much sangria. Every recipe should tell your staff the quantity the recipe should make and you need to verify its happening.

2. Purchase Yield Management: The thumb on the scale at the butcher shop is an example of why we need to look at purchase yield. If you're not aware of what the thumb on the scale means, here is an example. You go to an unscrupulous butcher and buy a pound (or kilo) of ground beef. You see the scale says 1 pound but when you get home its only 3/4 of a pound. You paid for a pound but the butcher had their thumb on the scale and made it look like your 3/4 was a full pound. This is why you verify the weight and quality of your purchases. For example, if you order 50 pounds of onions, are they all usable? Some vendors are notorious for sending bad product to people they know do not check. Ensuring you receive exactly what you pay for is crucial. Even a 10% shortfall in a 20-pound tomato case is significant, especially when scaled across all your produce orders over a year. Use a scale and visually check your product when it comes in the back door!

3. Use Yield Management and the waste bucket: Consider a saucepan. When deemed 'empty,' it might still have 3-15% of the sauce adhering to the sides and bottom. Using a scraper to transfer this residual sauce to the new batch can save you significant amounts, adding up to substantial savings over the year. Scrape those pans and containers out and save $$$.

4. Plate Yield Management: Observe your customers' leftover patterns. Diners leave about 17% of their meals uneaten, and 55% of these leftovers are not taken home, it's an indication to adjust portion sizes. This is especially true for items not popular as leftovers, like dressed salads. If they are not taking them home then its wasted and consider shrinking your portion sizes on items you see an abundance of to-go boxes or waste on the plate.

5. Scarcity Yield and the Toothpaste Philosophy:  The toothpaste tube philosophy is something that  hit home for me personally. I remember reaching for my toothpaste one night and finding the tube seemingly empty. With no backups, I managed to squeeze out just enough for the night. This moment of scarcity made me realize how much more we use when we believe there's an abundance. The same principle applies in our restaurants. The Toothpaste Tube Philosophy is about inventory management. If staff knows that resources are limited, they tend to use them more efficiently. For instance, if they believe this is the last of the toothpaste, they'll scrape every bit out. If they know we just bout 10 tubes from the big box store then they won't. Overordering leads to overuse; keeping inventory lean can mean more careful usage and reduced waste.

6. Bonus Considerations:

   - Not scraping pans increases dishwasher detergent use and water waste.

   - Low yield in recipes translates to more frequent prepping, upping labor costs.

   - Read my guide on the waste bucket here.

   - Implement "mise en place" (Putting In Place) in storage areas to prevent opening multiple packages of the same item. Everything has a place and gets returned to that place.

   - Use data-driven strategies for precise inventory and prep management.

Call to Action

It's not just about cost-saving; it's about being responsible custodians of our planet's resources. I challenge you to scrutinize your food waste practices and implement these strategies. The financial savings are just the start.

Ready to elevate your restaurant? With my experience and passion, I can guide you every step of the way. Let's collaborate to make your restaurant not just a dining destination, but a model of efficiency and sustainability.

Read more in the "Food Cost Guide for Beginners" Series for more Cordial Insights.

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