Effects of Food Inflation on the Senior Living Industry

Sodexo Seniors Client Newsletter Spring 2022

It’s no secret that the senior living industry has been one of the most hard-hit industries over the past two years of the COVID-19 pandemic. From cleaning supplies to facial coverings, from dairy products to vegetable oils, the cost of keeping communities up and running has risen like almost never before.

Food costs have been one of the inflation areas severely impacting senior living communities. Here are some insights into these rising costs and steps to take with your Sodexo Seniors team to mitigate the effects.

Ways to combat the rise in food costs

Some of the challenges include increases in both food and labor costs (including using agencies to staff up). Here are several ways your Sodexo Seniors team can collaborate with you to fight food inflation in your community:

1. Evaluate and adjust portion sizes for meat, fish, and self-serve products and move to machine cuts for precision (rather than manual slicing).
2. Identify and prioritize low-cost/high-popularity dishes to create alternative recipes/menus.
3. Identify your top category spends – such as meat, produce, fish, or bread – and develop relationships with your key suppliers.
4. Increase the frequency of meals with price-stable ingredients.
5. Place bulk food orders, when possible, and stock up before costs rise.
6. Reduce food waste with Sodexo’s WasteWatch.
7. Review how often your menu includes high-volume/high-cost product dishes.
8. Shift from animal protein to plant-based protein when available and appropriate.
9. Switch to generic ingredients for break rooms, such as sugar, sugar substitutes, and coffee creamer.

 

Key food categories feeling squeezed

These three main food categories have been particularly hard hit over the past couple of years.

Chicken supply

Chicken costs have risen due to the avian flu and soaring feed costs. Because Ukraine is a major exporter of chicken, the Russia/Ukraine crisis has also contributed to chicken inflation. Here are some ways to combat high chicken prices:

• Consider using a blend of white and dark meat chicken, or plant-based and animal-based protein in dishes.
• Explore alternative protein sources, such as plant-based foods.
• Review how often your menus include chicken, and work to reduce it.

 

Cooking oil supply

Cooking oil costs have risen due to a poor canola harvest in 2021, COVID-related demand, and the Russia/Ukraine crisis (both countries are major sunflower exporters). Here are some ways to combat high cooking oil prices:

• Consider using alternative fats, such as margarine, olive oil, or hemp seed oil.
• Optimize how you apply oil while cooking, such as spraying vs. drizzling.
• Prioritize dishes that require less oil, such as grilling or air-frying.
• Recycle used oils responsibly, where available.
• Review how often your menus require cooking oil and work to reduce it.
• Maximize the oil life in your fryer.

 

Fish supply

Fish costs have risen mainly due to the Russia/Ukraine conflict, as Russia exports 40% of the world’s white fish.

• Explore alternative protein sources, such as plant-based foods.
• Source locally caught fish species to avoid availability issues.
• Swap out expensive fish for more cost-effective species.
• Use alternative types of seafood, such as shrimp, squid, or mussels.

 

The Sodexo Seniors team is here for you, providing insights about the senior living industry that make a difference to your business. Discuss these suggestions with your Sodexo managers and use our guidance to help optimize your food menus for today’s economic climate – and for whatever the future brings.