How to Increase Profits In Your Food Business Without Increasing Food Production
Many editors are calling 2022 the “Year of Food Inflation” — and we don’t blame them.
In 2021, the prices of food items rose more than 5.8% when compared to the previous year. That’s the fastest inflation in food prices since 1982.
However, the inflating prices don’t mean restaurants are making more money than they used to. In fact, they’re making less money each year. That’s because while food prices rose by 5.8%, the prices of meat have risen even more.
To be specific, the price of beef, pork, and poultry rose by 20.9%, 16.8%, and 8.4% from 2020 to 2021. Furthermore, analytics say the prices might go even higher in 2022.
In this article, we dive deeper into this subject. We find out whether food business owners are profiting or losing from this surge in inflation, and how they can increase their profits without increasing production or food prices.
The relationship between inflation and food
As demonstrated by the statistics earlier, food business owners aren’t the culprit in the inflation of food prices. In fact, they aren’t increasing the prices as much as they statistically should have.
For instance, when the price of beef rose more than 20%, restaurants only bumped their food prices by 5.8%. As meat is the primary ingredient of most dishes, food businesses are already making a lot less money, even after inflation.
Hence, food businesses can’t be held responsible for the surging prices.
Small businesses are getting affected even more
The biggest names in the food industry can kind of get away with increasing their prices. On the other hand, small businesses don’t have that much freedom. If they increase their prices and customers don’t feel comfortable about it, they may face a severe financial crisis.
As a result, small food business owners are earning even smaller margins with the rising inflation. Simply put, earning and saving cash isn’t enough for small food business owners to build a sustainable future.
Crypto & food businesses — a good combination?
As small food businesses can’t rely on cash alone to sustain themselves, they need another way to make money through their services. And Esca believes that “another way” is crypto.
That’s why we're creating $ESCA, an extension of our food ordering platform, Esca Menu.
When a small business starts selling their food through Esca Menu, they earn cryptocurrency with each item sold. Whenever they get an order from a customer, depending on their geographic location, our delivery driver picks up the food and delivers it to the customer. After the delivery, the business earns $ESCA tokens in their Esca wallet within 48 hours.
So what does this all mean?
By earning and saving up crypto, small food businesses can build a second stream of income without increasing food production. Furthermore, to stay competitive, they don’t even have to increase their food prices as much as their competition — because, through Esca, they have a second source of income.
Hence, small food businesses can build a solid, sustained business model, without increasing production capacity or prices.