Addressing the Challenge of Food Waste: A Powerful Solution for Supermarkets

Introduction

In the global battle against food waste, supermarkets stand at the forefront, facing significant challenges in managing products nearing their expiration dates. Traditional methods of inventory management often result in overlooked or belatedly discounted items, leading to lost revenue and exacerbated food waste. To combat this pressing issue, Too Good To Go, a pioneering force in the food waste reduction sector, has developed an innovative solution that harnesses the power of artificial intelligence (AI) to assist supermarkets in optimizing their inventory and minimizing waste.

The Problem: Time-Consuming and Inefficient Processes

In conventional supermarket operations, store personnel manually inspect products to identify those approaching their expiration dates. This time-consuming and error-prone process often leads to products being overlooked or discounted too late, resulting in lost potential revenue and increased food waste. These challenges underscore the need for a more efficient and effective approach to inventory management.

The Solution: Too Good To Go’s AI-Powered Software

Too Good To Go’s AI-powered software revolutionizes the way supermarkets manage expiration dates. By leveraging customer behavior, seasonality, and other relevant factors, the software generates accurate estimates of how likely a product is to sell at any given time. Based on these predictions, it suggests optimal discount rates for products approaching their expiration dates.

Furthermore, the software streamlines the process of identifying products that need attention. Store workers only need to manually check a small percentage (1% to 7%) of products, significantly reducing the time and effort required for this task. The system also flags products suitable for donation or steep discounts through Too Good To Go’s app, providing an avenue for consumers to purchase these items at reduced prices.

Successful Trial and the Impact of Inflation

The effectiveness of Too Good To Go’s software was demonstrated in a trial conducted with a supermarket chain in France. Previously, the grocer discounted cheeses by 50% nationwide when they reached within two days of their expiration date. After implementing the software, the store implemented variable discounts based on regional preferences and seasonal trends. This resulted in increased sales and reduced food waste.

The rising inflation has further amplified the demand for discounted short-dated goods. Supermarkets are increasingly motivated to minimize food waste and enhance their bottom line through effective discount strategies. Too Good To Go’s software provides a powerful tool to achieve these objectives.

Environmental and Financial Implications of Food Waste

Food waste poses significant environmental and financial challenges. According to the United Nations, approximately 30% of food produced globally is wasted, contributing to 8% to 10% of greenhouse gas emissions. This waste also has financial consequences for supermarkets, accounting for roughly 1.6% of net sales on average.

To address these challenges, Too Good To Go has developed a mobile app that connects consumers with restaurants, bakeries, and grocers offering unsold food at discounted prices. The app has gained immense popularity, with over 85 million users across the US, Canada, and 15 European countries.

Addressing Confusion over Expiration Dates

In addition to implementing effective inventory management systems, there is a need to address consumer confusion regarding expiration dates. Many individuals mistakenly believe that “use-by” labels indicate optimal quality rather than food safety. This misconception leads to unnecessary food waste.

Regulatory bodies can play a significant role in clarifying the meaning of these labels, ensuring that consumers have a clear understanding of when food is no longer safe to consume. Clearer labeling and consumer education campaigns can help reduce confusion and prevent avoidable food waste.

Conclusion

Too Good To Go’s innovative AI-powered software offers supermarkets a powerful tool to combat food waste and optimize inventory management. By leveraging technology, the company empowers supermarkets to reduce waste, increase sales, and enhance their bottom line. Moreover, addressing consumer confusion over expiration dates and promoting responsible food consumption are crucial steps in tackling the global food waste problem. Supermarkets, consumers, and policymakers must work together to create a more sustainable and efficient food system.