The Problem
Every chain starts with a single unit, utilizing the ingredients and recipes available at the time. As they grow, they often continue using legacy, off-the-shelf retail spice blends and sauces—ingredients that are broken in many ways. These pre-packaged products may be inconvenient, widely unavailable, and excessively costly. During expansion mode, there is little time or inclination to address these issues. A national, billion-dollar chain found itself in precisely this situation, having grown from one unit to several hundred without reassessing their use of branded, off-the-shelf spice blends. These products were leading to substantial overspending, with costs that were unnecessarily high, and there was an estimated $1,000,000 left on the table due to inefficiencies in packaging and purchasing.
The Solution
Midas Foods was brought in to address this challenge. Our culinary team conducted a thorough review of the products and packaging used by the chain. After analyzing the existing systems, it was clear that the pre-filled 32oz shaker bottles were not the most efficient method of distributing spice blends. The team at Midas did provide that option but also determined that refilling these bottles from bulk would offer a better balance of cost-effectiveness, quality, and environmental sustainability (ESG friendliness). By reverse engineering the original products, the Midas team was able to not only improve the quality of the spices but also reduce waste by eliminating single-use plastic shaker bottles.
The Results
The implementation of these changes led to several significant improvements:
Enhanced ESG Scores: The reduction in waste from using reusable bulk refills instead of disposable shaker bottles helped the chain improve its environmental sustainability efforts.
Improved Product Quality: The reverse-engineered spice blends exceeded the original branded products in both taste and consistency.
Reduction in Consolidated Freight Costs: By shifting from individual shaker bottles to bulk packaging, freight costs were significantly lowered due to reduced volume and weight.
Annual Savings of Over $1,000,000: By optimizing their spice blend sourcing, the chain was able to cut costs and increase profitability without sacrificing quality.
The success of this partnership demonstrates that even well-established brands with robust growth can benefit from reevaluating legacy practices. Midas Foods provided a comprehensive solution that not only saved money but also aligned with broader sustainability goals. For chains facing similar challenges, a culinary review by Midas can unlock substantial hidden savings and efficiencies.