Not 'round here. It's more like better dressed Walmartians that drive vehicles from Volvo and Subaru with Coexist stickers on the rear glass or rear number.
Corporate product donations....
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Detective D
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At least they can donate it.
Subway's "bread" is mandated to go into the trash for health safety reasons. Source: employees at the local gas station/subway when I asked what they do with the leftovers. Apparently their bread will keep for approximately 7 hours and then must be discarded. This was from a couple years back so maybe it has changed, but knowing the brand probably for the worse actually.
Subway's "bread" is mandated to go into the trash for health safety reasons. Source: employees at the local gas station/subway when I asked what they do with the leftovers. Apparently their bread will keep for approximately 7 hours and then must be discarded. This was from a couple years back so maybe it has changed, but knowing the brand probably for the worse actually.
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I have no heartburn about them donating the bread. Just about them donating so much, in relation to the bottom line. Seems to be a lack of control in the kitchens.
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That's how it was when my wife and I ran a small restaurant years ago. It was a franchise specializing in muffins (it was a Muffin Break) and we had to follow rules, one of them being that we should have three or four dozen muffins still in the racks at the end of the night. If we had too few, we were told we hadn't made enough. Strict accounting of every single baked product was written down every day. The food bank collected a few bags full each morning.
4406bbl
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81 million is only 3% of the 2.8 billion public records show they did last year.....that's a tight ship in that type of business, where every day is a guessing game.
X2. It's all part of doing business, as far as 80 million worth. That the estimated cost if sold, not what it's worth in spent cost. At Chrysler if they said they were going to build 1140 cars a day and yesterday they only build 1120, they would say they lost 20 cars. One could ask, what cars can you lose if they weren't ever build. Projected earnings.
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Whether it's manufacturing, food service, or in my experience, transportation, you have to cover your capital costs with your revenue stream. If you miss sales because you can't supply your break even demand, you will end up in trouble, no matter what the business. Opportunity cost. In the trucking business, our primary waste cost was casualty loss expense, which included accidents, injuries, and product contaminations. The food loss numbers quoted in this thread resemble the demons I fought when operating trucks, when expressed as a percentage of revenue.
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slepr1
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Doing the math...there are 2137 locations, totals $37435 average donation for each location.
Their products probably have a 20% food cost, which would equate to $7487 in raw product cost per store.
The 3% waste/donation is added to the price of the products so in the end they use as a write-off and they look like heroes.
When I use to work in retail, theft, waste, donations were ALWAYS part of the 'sell for price'.
Their products probably have a 20% food cost, which would equate to $7487 in raw product cost per store.
The 3% waste/donation is added to the price of the products so in the end they use as a write-off and they look like heroes.
When I use to work in retail, theft, waste, donations were ALWAYS part of the 'sell for price'.
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YY1
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It was mentioned on the radio last week about those places that want you to "round up" for a donation.
Do they then take all those "rounded up" funds, and then make a donation which they receive a tax credit for?
Do they then take all those "rounded up" funds, and then make a donation which they receive a tax credit for?
4406bbl
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Usually the food cost is 28-35%. It might be a little higher these last few years.
slepr1
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Regular restaurants would have an average food cost of 30% or less but corporate restaurant averages around 20% after all (visible to franchisee) rebates. I've worked/owned both and I was surprised at the wide price differences in raw product. Food cost wouldn't necessarily be higher with higher raw products unless the operator doesn't raise their sell price (which they most certainly do). It baffles me how many independent operators don't know or understand how much to raise their menu prices to absorb inflationary price increases. Most of them just jack the prices up willy nilly without a calculator in sight.
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4406bbl
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No way a restaurant today doing baking, after covid, after their contracts run out, is hitting 20% across the board. Everything they use has went up, on some items it has been 100% price increases. You can only charge what people will pay, and Panera is high already.
slepr1
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I can give you examples of where Panera are hitting 20% FC.
Their plain bagels price here in Canada is around $2.09 each. Cost in ingredients for a dozen bagels is less than $2 (.55 in flour, yeast, sugars, oil, egg for glaze ~$1. Total is $1.55/dozen or $.13 each. That around 6% food cost. Add another $.45 in ingredients and FC raises to 8%. Lower items like this will offset higher FC items.
Their full Steak and White Cheddar sandwiches are $15.09. They use tenderized round or sirloin for the meat, 6oz portions ($1.50), cheese 3oz ($.94), Ciabatta (.25), onion/sauce (.30). Total cost $2.99. Food cost is 19.8%.
I could go on with more. These raw product costs are here in Canada and reflect a mix of currant wholesale prices and retail. I do know that if you have 2100 restaurants all buying the same ingredients their costs will be much less as they deal directly with the manufacturers and just pay a food distributer to deliver. Maybe the US prices are higher?
20% food cost doesn't include waste, donations, theft ect. This is a calculation of raw cost. All other costs (waste, donations, theft ect) are factored in by themselves as a percentage of total sales. Before owning my own restaurant I worked for corporate restaurants and would train their management on food & labor costs and understanding P&L. My skillset is old-school. New thought in corporate is less on FC but rather on Gross Profit.
BearDodge67
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Last time I went to The Keg, I didn't look at the prices and think "Hmm, the steak cost them $5.32 and the gas for the grille was .35cts a minute..", I just remember seeing the bill for the 4 glasses of wine I had and thought "Dang, I coulda bought 3 bottles of the same stuff for less"
The wife and I went out with the neighbors to a bar that serves food. Just a nice place that serves good bar food and pizza's. The bill for the 2 of us was $66 with tip. She had a couple glasses of wine and a salad and I had a fish sandwich and 4 tap beers. It's spendy nowadays.
BearDodge67
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Multiply that by 4 and that what my bill was with tip (in CDN money)... but it was worth it... first time I ever got asked "Before I bring it, are you driving?"
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