Innovative and thoughtful business strategies allow foodservice operations to achieve the financial success they need to thrive. But money isn’t the only measurement of “making it” by today’s standards. In fact, many operations embrace a bigger-picture business concept called the triple bottom line. This strategy incorporates the importance of a healthy bank account, but it reaches further by looking at how your organization can also support people and the planet. There are three pillars within this approach — financial, social and environmental. Let’s explore the ways your operation can manage these three areas for a successful triple-threat bottom line.
The financial pillar
There’s no doubt healthy finances must be a top goal for you, or your establishment simply won’t make it. That means controlling costs, maximizing profits and minimizing risks need to drive a lot of your decisions.
With that in mind, smart businesses know that assessing potential financial pain points is a good place to start. One area affecting foodservice operations today is an unpredictable market due to continued supply chain challenges. Shifts within the market mean that your operation can’t depend on the availability or price of certain products. Missing out on key ingredients (especially for staple items on your menu) or spending more money on items than you have in the past, can impact your profitability.
Thankfully, there are creative ways to mitigate supply chain instability. Try shopping around with different vendors to get the best price on the products you need. Or limit your menu to a few top-selling items so there’s less inventory to purchase. You could also consider brokering a deal with local farms or meat markets.
Partnerships come in many shapes and sizes. For example, if you’re a larger operation, think about contracting with a local or national foodservice supply vendor. A contract can help set prices for certain items over the life of your agreement. Additionally, smaller businesses can benefit from a similar cash-saving strategy by joining a buying cooperative. These co-ops pool their buying power to get better pricing on food and supplies. This strategy can help ensure you stick closer to a preset food budget and avoid unanticipated costs.
Another area that takes a large portion of a foodservice operation’s budget is labor. Often, it’s a careful dance balancing just enough servers, baristas, cooks, managers and other employees to match the amount of meals you serve in each daypart. One way to succeed in this area is by paying attention to critical metrics, such as your meals per labor hour (MPLH). Be sure to understand when your peak hours occur and plan schedules accordingly. But even with a perfect scheduling strategy, you need staff — which is harder to come by these days.
Not having enough staff can be frustrating. Thankfully, there are different equipment solutions aimed at tackling this issue. For instance, automated equipment can simplify tasks, enabling staff to focus on other pressing needs in the kitchen or front of house. Some cooking units, like Hatco’s induction ranges, offer programmable presets that allow you to cook food at a specific temperature for a set amount of time. Once the food is done, these units hold it at just the right temperature until it's placed in a warmer or served to guests. No more accidentally burned food (also a money saver) — just tasty, hot goodness ready for your guests, all with less labor. Talk about a cost-effective combo.
The social pillar
No doubt the financial part of business is crucial, but the triple bottom line isn’t just about money. It’s also about being a part of the community you serve. There are many needs within a city or town. As a business, it’s vital to unite with the people in your area and look for ways to uplift and add value — because when your community thrives, so does your operation.
There are plenty of ways to give back. Something as simple as sponsoring a little league team with t-shirts or equipment can make a big impact on the kids and families in your area. Also, a hot summer baseball game played with your logo on their shirts is a great way to advertise your operation. It just might bring the whole team, their families and friends to your establishment to get some tasty grub and a refreshing drink right after.
Other actions, like donating monetary gifts or equipment to a local school or other non-profit organizations show that you care. And if there are particular causes you feel strongly about, find ways for your business to take action in supporting them. In addition to stepping up by donating money or equipment, time is also valuable. Volunteer at the local food bank or humane society and encourage your staff to do so too. Some companies will even pay their employees to volunteer for a day, or they’ll serve together and use it as a team-building opportunity.
Your team is also part of your social network; treating employees with respect, dignity and care speaks volumes to your social bottom line. Things like fair hiring practices, advancement opportunities, paid time off and offering other benefits to employees boosts the reading on your social value meter. Word spreads fast, and a good reputation holds its weight in gold.
Reputation also comes from being a good neighbor. Think about joining your chamber of commerce to get to know other business owners. And if you’re able, hire local contractors, purchase local foods for your menu and shop locally for supplies. Any way your operation can get out into the community and be an active part of its inner workings while providing support to organizations and people in your area will help your social bottom line flourish.
The environmental pillar
Along with profit and people, the third cord to the triple bottom line concept is planet. There’s overwhelming evidence that corporations, businesses and people can create a carbon footprint that negatively impacts the environment. The good news? Your actions can help reduce or reverse some of those effects.
One way to start this process is by assessing how your operation influences the environment today. Ask yourself questions like, how much energy are we expending on a daily basis? What is our water usage? How can we reduce food and other waste? Are there areas where we unintentionally pollute the environment? If you need help, there are companies and tools available that can help you measure your carbon output. Getting a handle on the eco-areas your operation struggles with, can be part of the solution.
Environmental resolutions can come in different forms. Take a look at the age of your equipment and whether or not you have energy-saving units. Often, older equipment doesn’t work as efficiently as new units, and replacing them can significantly drop your energy usage. For example, a new, energy-efficient warming cabinet will have a tightly sealed door that won’t let heat escape, compared to an older unit with worn-out or cracked seals that can’t keep the warmth inside as well. There’s also equipment that has instant-on features to lower energy consumption by reducing the warming phase of some units by 15-30 minutes. In addition, innovative cooking equipment with pan-sensing technology will automatically turn off when heat isn’t needed. And here’s the best part, when your operation keeps energy usage in check, it's not just good for the environment, but also easy on your wallet.
Mother Earth needs our help. Preserving her beauty and natural resources can happen when you conserve water by fixing drips, leaks and plumbing issues, purchase eco-friendly packaging, buy local products and more. Also, it’s okay to let the world know what you’re doing. Not only will it help bring like-minded people to your establishment, but it can encourage others to do the same. Afterall, there’s nothing quite like a nice, eco-friendly ripple effect.
Local and far-reaching impact.
Adopting a triple bottom line strategy won’t just improve your own business, it can also help your local community and have a wider environmental impact. Get onboard with this beneficial business practice today. Want to learn about one pillar of the triple bottom line Hatco is working toward? Take a look here.
