The restaurant industry has been hit hard by input cost inflation from labor and ingredients to the distribution of prepared, ready-to-use (RTU) soups, sauces, glazes, and gravies. With these rising costs, restaurants are struggling to maintain their profit margins while delivering quality food to customers. This has led restaurants to search for margin-improvement options.
The Problem
Distribution has been an input cost driver nationally. As contracts have rolled over, restaurants that were paying a flat fee per delivered case of RTU products and those who received higher-cost frozen and refrigerated items saw costs escalate. These increased costs impacted their profit margins, and restaurants were seeking alternative options.
The Solution
Midas dry blends provided a solution to the distribution cost challenges restaurants face. The use of Midas dry blends allowed for significant cost reductions as one case of dry Midas mix could replace four to ten cases of prepared RTU products. This represented a 75% to 90% reduction in case volumes, leading to a corresponding reduction in distribution costs. Since the product ships and stores dry, it fell into lower cost distribution pricing and freed up valuable cold storage on site.
The Results
Utilizing Midas dry blends provided a viable solution for restaurants seeking to reduce ingredient and distribution costs while maintaining quality. The ability to reduce distribution costs by up to 90% by using dry blends not only allowed restaurants to recover their margins but also provided them with a competitive edge. Contacting Midas to explore the option of using dry blends could provide a cost-saving solution for restaurants looking to improve their profitability.