Inflation – Partnering to Help Curtail the Effects

Inflation has hit a 40-year high in 2022 and we’ve all felt the effects, from increased prices to supply and demand challenges. The white-hot labor market has driven up wages faster than at any time since the mid-1980s, as employers struggle to attract – and retain – qualified workers. Inflation has also surged, with the Consumer Price Index rising by 8.3% in the 12 months ending in April 2022. 

The rate of inflation is expected to slow; however, prices for most goods and services are expected to remain high. 

How Sodexo Seniors is Responding

Below are some of the ways we are working to mitigate the effects of inflation while reinforcing our commitment to sustainability, health and wellness, using locally sourced ingredients, variety in the offerings, and the overall resident experience.

We Help Combat Labor and Vendor Challenges 

We optimize labor by:  

• Coordinating teams from human resources, labor, frontline strategy, and segment support to recruit and hire new employees as well as retain current employees 
• Evaluating pay rates and compensation packages 
• Focusing on training and development programs  
• Refining compensation and labor management approach
   

We evaluate business volume to ensure appropriate staffing and scheduling through: 

• Adjusting speed-to-hire to expedite the hiring process 
• Analyzing labor availability by area/campus to determine appropriate actions 
• Labor optimization, automation and cross-training
• Reviewing labor requirements/labor expenses to lower program delivery costs by eliminating redundant steps in daily work processes as well as aligning FTE and contractual needs (working to eliminate scope creep) 

We use Sodexo Seniors-approved vendors to ensure sourcing strategies are optimized in terms of: 

• Price 
• Quality 
• Risk 
• Safety 
   

How We Help Combat Food-Related Challenges  

We follow the processes, systems and tools available to you, including:

• Focusing on product quality to ensure guest satisfaction 
• Menu planning using DRIVE, our platform that incorporates menus, recipe, and production management, purchasing and inventory into one end-to-end process flow  

We optimize the Food Platform to design menus to better manage food-related costs by: 

• Assessing Volume Discount Allowance impact, a discount that a wholesale company offers Sodexo in exchange for a bulk sale 
• Implementing plant-powered menus to reduce use of traditional proteins 
• Monitoring product availability/supply chain reliability 
• Reducing protein mix and using 4 oz. chicken breast portion  
   

We are here to collaborate with you and ready to implement creative solutions to help reduce the effects of inflation. We encourage you to ask questions, stay engaged, and help celebrate wins as we face these challenges together.