Finding Cost Saving Solutions For RestaurantsFinding Cost Saving Solutions For Restaurants Thursday, Oct. 22, 2020 Presented by: Illinois Restaurant Association, IGS Energy, Performance

Finding Cost Saving Solutions For Restaurants

Thursday, Oct. 22, 2020

Presented by: Illinois Restaurant Association, IGS Energy, Performance Foodservice-Chicago, and EMPLOYERS

in conjunction with

Cook County Board President Toni Preckwinkle and the Cook County

Community Recovery Initiative including partners Illinois Business

Immigration Coalition and National Partnership for New Americans.

Para escuchar en español, use el botón Interpretación 此网络研讨会有中文及英文两种放送版本

IllinoisRestaurants.org CookCountyIl.gov/Recovery


https://www.illinoisrestaurants.org/?https://www.cookcountyil.gov/recovery

Panelists

Anh Hang

Non-Foods Specialist

Performance Foodservice–

Chicago

Corben Sherlock

Lead Regional Manager

IGS Energy

Dan Killins

ARM - Loss Control

Program Manager

EMPLOYERS


Corben Sherlock

Lead Regional Manager

IGS Energy

Private

Family Owned and Operated

Natural Gas Supplier

Electricity Supplier

Solar Provider

LED Upgrades

Who is IGS Energy?

*Eliminating 3rd Party/Broker Fees* – Working through IGS includes the least amount of cost layers

*Advising & Purchasing* - well timed contracts to reduce costs

Strategy Changes – selling or buying soon?

Bill Analysis – remove unnecessary charges from billing

Usage Reduction – Facility changes to lower usage

How can IGS Energy help?

Eliminating 3rd Party & Broker Costs

10/21/2020 7 |

UTILITY (Comed,Peoples, Nicor Etc)

SUPPLIER (IGS)

Broker

• DOES NOT buy energy or stake capital

• DOES NOT take risk • DOES NOT underwrite contract

Eliminating 3rd Party & Broker Costs

10/21/2020 8 |

UTILITY (Comed,Peoples, Nicor Etc)

SUPPLIER (IGS)

Natural Gas & Electricity Contracts: When Did You Last Re-evaluate?

1

UTILITY PROGRAM

(variable pricing)

2

ROLLOVER CONTRACT

(variable pricing)

3

UNDER CONTRACT

Is it a good time to buy?

What is the market doing?

Natural Gas & Power Trend Together

• …… because we use natural gas to produce a large portion of our electricity as a country

• Gas is the leading

indicator – when gas spikes, electricity moves in the same direction to some degree the day following – could be more or less of a spike/dip.


• Prices to the left indicate only the cost of raw gas, no transport

• Gas prices remain at an all time low

• Notice that most major spike take place in the winter months


• Natural gas storage during winter 18/19, was below the 5 year average --- this gray line is the result of that.

• Major spikes are a risk when we don’t store gas and we have demand increases

• Future winters are trading higher in the near terms signaling a potential bullish future

Electricity Market

The risk is that we keep trending upward or don’t trend

downward before your next contract.

Currently there is much more risk in the upward movement

than the downward movement

• This graph represents the cost of

electricity alone • The dollars on the side can be

equated to cents • E.g. $45 =$0.045/kwh

• This is almost as low as it has ever been

• There has been a slight upward movement, but generally speaking, we are still near all time lows

• IMPORTANT – long term pricing (blue line) is currently discounted – this is a backwards market to what traders are used to seeing

Growing Consumption

• Consumption of Natural Gas and Electricity (via natural gas generation) have increased exponentially relative to past years.

• It is expected that 2019 would

be on pace to a similar jump in consumption. As well as 2020, although Covid may have slowed that projection

Future Expectations

$0.50

$1.00

$1.50

$2.00

$2.50

$3.00

$3.50

$4.00

$4.50

$5.00

-1,000

-800

-600

-400

-200

0

200

400

600

800

1,000

$/D

TH

BC

F

Storage Delta to 5-Year Avg vs. NYMEX Prompt Month

Storage Delta

Jan 2015 - Aug 2020

• This graph depicts the potential for price spikes/volatility due to storage deficits or surplus

• Although the US is the worlds largest producer, our storage or lack of, has a huge impact on pricing

• Generally you see an inverse relationship between price and storage of the 5 year average (production dependent)

• Storage up = suppression

• Storage down = volatility

Corben Sherlock

[email protected]

312.262.2265

Thank You!

mailto:[email protected]

Anh Hang

Non- Foods Specialist

Performance Foodservice -Chicago

Put that on the right plate!

Packaging for Success

Anh Hang (pronounced “On”)

Non-Foods Specialist for Performance Foodservice-Chicago

Been in the industry for 6 years

Passionate about helping restaurant to put money where it should go to grow

Meet The Presenter

Product Cost

Opportunity Cost

Efficiency cost

3 Types of Cost to Look for in Packaging

In April 2020, Americans ate 58% of restaurant meals at home

56% of consumers have now tried 3rd party delivery sites and apps

40% say they’re likely or very likely to continue getting restaurant orders delivered

48% say they’re likely or very likely to keep getting restaurant orders via carryout

Nearly 1 in 3 plan on eating inside restaurants less

Packaging is becoming more important…

The Right Packaging for the Right Food

95% of consumers expect delivery food quality to be as good or better as dine-in*

57% of consumers say packaging makes a big difference in food quality

Left over containers Carryout containers

Product Cost: Understanding what container is best for your food

Choose the minimal amount of containers that will work for most of your food

Side Dish

Entrée

Soup

Product Cost – Less is More

Opportunity Cost

Understand What’s Going In

Efficiency Cost: Look into your process from A-Z to save time while

improving accuracy

Clear Top for quick check Quick Snap for expediting Quick bag to ensure stability and check

And Remember…

By using the right packaging, you will be able to reduce cost, time and increase more sales going into the winter

Dan Killins

ARM Loss Control Program Manager

EMPLOYERS

• Risk Manager – 20+ years

• Disney - Risk Management, Global Food & Beverage

• National Restaurant Association – Co-Chair, Safety and Risk

Management Workgroup

• EMPLOYERS – 5+ years

Introduction

• Costs – Above and below the waterline

• Safety Culture

• Benefits

• Three focus areas

• How do I apply this every day?

Agenda

Costs – Above and Below the Waterline

Insured costs

• Premiums, medical, indemnity, legal,

etc..

• Generally increases based on

experience

Uninsured Costs

• Filling staffing gaps

• Could include deductible

• Additional wage payments

• Service interruption

• Quality issues

• Employee morale

• Investigation and administration of

claims

• Public perception

• Regulatory intervention

Safety Culture

“A safety culture consists of shared beliefs, practices

and mind-sets that exist at an organization, and form

an atmosphere of attitudes that shape behavior in a

certain way.”

What is a Safety Culture?

According to the Occupational Safety and Health Administration (OSHA), developing a strong safety culture has the single greatest impact on accident reduction of any workplace practice.

Lower workplace stress.

More engaged employees.

Lower Absenteeism

Better work/product quality

Lower turnover

Problem employees/workplace conflicts become more immediately evident.

Easier to overcome obstacles and provides more consistency.

What are the benefits of a positive Safety Culture?

• Management/Leadership

• Set the tone

• Walk the talk

• Employee Engagement

• Think about all levels

• Continuous messaging

• Continuous Improvement

• Open discussion about previous incidents and areas of concern

• Employees participating in implementing change

What are the three focus areas?

• If you haven’t already, create and communicate a message/statement that

describes the culture you want to have.

• Spend time looking for opportunities to observe that culture working….or

perhaps not working. Call out those observations!

• Ensure accountabilities at all levels….don’t miss any!

• Find opportunities to make messaging and communication more continuous.

• Be open to discussing challenges and obstacles

• Let employees help find and implement solutions

How do I apply this every day?

Finding Cost Saving Solutions For RestaurantsFinding Cost Saving Solutions For Restaurants Thursday, Oct. 22, 2020 Presented by: Illinois Restaurant Association, IGS Energy, Performance

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