LOS ANGELES–(BUSINESS WIRE)–As surging food inflation continues to define the economic landscape, restaurant groups of all sizes struggle to remain profitable. The ability to easily access the most competitive prices on food products has always eluded restaurants due to opaque and fragmented ordering processes. Now, for the first time, the full impact of this fragmentation on the restaurant business is clear.
Synthesizing over 40,000 pricing data points gathered in real-time from over 200 of the nation’s largest food suppliers, Zitti has compiled a report that reveals an alarming trend: prices on identical food items can vary 27% on average between suppliers, and in many cases north of 50%. These significant price variances, particularly at a time when food costs comprise a third of restaurant expenses, highlight the need for the transparency and actionable insights that Zitti delivers.
Zitti is a technology company that allows restaurants to easily compare wholesale food prices among suppliers, empowering them to make smarter ordering decisions, discover new products, decrease food costs, and increase profitability.
As restaurant food costs skyrocket, suppliers and big food corporations are profiting. Recent reporting by CNBC and Forbes corroborates Zitti’s findings, showing how major players in the food industry have amplified inflation to increase profits. For instance, Cargill recorded a 23 percent jump in revenue last year to $165 billion—$6.68 billion of which was profit. Tyson Foods, the largest meat producer in the U.S., nearly doubled its profits in the first quarter of 2022 due to soaring meat prices. As former U.S. Labor Secretary Robert Reich has also argued, food corporations are hiding behind inflation to hike prices, intensifying the strain on restaurants.
These profit windfalls have significantly exceeded inflation over the same period. Due to the market inefficiencies and opaque nature of the data in the wholesale food industry, these profits are not trickling down to benefit the restaurants.
In addition to highlighting a 27% average price variance, Zitti’s Order Guide report breaks down average price variances across suppliers for the following core products:
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Meat, Eggs, Dairy (Average Price Variance)
- American Cheese: 51%
- Chicken Breast: 32%
- Smoked Bacon: 32%
- Beef Philly Steak Marinated: 30%
- Sour Cream: 24%
- Eggs: 16%
- Pepperoni: 10%
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Dry, Canned (Average Price Variance)
- San Pellegrino Sparkling Water: 45%
- Coconut Cream Bar Mix: 36%
- Whole Wheat Flour: 30%
- Heinz Ketchup: 26%
- Pesto Sauce: 20%
- Canned Tomatoes: 19%
- Canola Oil: 18%
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Produce (Average Price Variance):
- Red Onion: 39%
- Avocado: 26%
- Fresh Basil: 26%
- Iceberg Lettuce: 20%
- Fresh Limes: 8%
In addition to the aforementioned price variances, the Zitti report also illuminates wholesale price trends for essential products. While commodity price trends are publicly accessible, Zitti provides insights into actual wholesale prices, which encompass all factors influencing food distributors’ quotes to restaurants—impacting the consumer more significantly.
Key Q4 2023 price trends observed by Zitti include an unprecedented surge in egg prices, far exceeding the baseline commodity price, and a notable decrease in chicken prices:
- Eggs Extra Large: +50.9%
- Strawberries: +40.9%
- Tomato Plum/Roma: +14.3%
- Lettuce Romaine: +3.2%
- Chicken Breast: -13.5%
Dante DiCicco, CEO of Zitti, states, “The 2023 insights report embodies Zitti’s mission to equip restaurants with the data they need to tackle rising costs effectively. Our platform’s capacity to disclose these price variances and trends is indispensable, particularly when profit margins are under pressure.”
This report is invaluable for both enterprise and independent restaurant groups, highlighting the power of technology in uncovering food cost savings. Zitti’s insights are integral to its vision, fostering innovation within the tech community and the food service procurement sector.
For a deeper understanding of how Zitti’s comprehensive insights can revolutionize your food procurement strategy, please visit https://www.zitti.com/.
About Zitti Inc.
Based in Los Angeles, California, Zitti Inc. is a pioneering technology company revolutionizing the food procurement process for restaurants across the country. The Zitti platform, featuring its Order Guide and Ordering products, promotes transparency and fairness in the food service industry. Zitti is dedicated to empowering restaurants to succeed in a dynamic market through innovation and excellence.
In today’s rapidly evolving technology landscape, owning valuable industry-specific data is paramount. With an extensive network of food supplier data and insights, Zitti is at the forefront of digital transformation in the food service procurement space.
For more information, please visit https://www.zitti.com/.
Contacts
Champl Creative
Jenna Reback
jenna@champlcreative.com
