Tag Archives: last mile

lightbulb, innovation

Record Investment in Foodtech Boosted by Changing Consumer Preferences, Sustainability Initiatives

By Food Safety Tech Staff
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lightbulb, innovation

Investment in foodtech made significant leaps forward thanks to increasing consumer demand, digitization and innovation in certain food categories. According to a report recently released from Deloitte & Touche, LLP, the value of deals made in the sector from 2020 to 2021, jumped from $6 billion to $13.1 billion, respectively. Factors driving investment in the sector include continued growth in alternative and plant-based proteins, the establishment of tech-based platforms that improve supply chain logistics and consumer experiences, and technological innovation in general.

According to Heather Gates, audit & assurance private growth leader for Deloitte, the accelerated growth in foodtech innovation is parallel with advances in agtech. “Hydroponic farming, improved fertilizers and pesticides, and robotics AI are all enabling more sustainable, steady production of produce even in urban centers, which can help augment local distribution opportunities for foodtech platforms,” she stated in the report.

The expansion of food tech is also promoting more farm-to-table options to consumers, because it streamlines distribution and delivery. As interest on the part of consumers for healthier and more convenient options continues, companies will see an increased emphasis on innovation in foodtech that incorporates sustainability and waste reduction, nutritional considerations, environmental impact, more competition in making more foods available at an affordable cost, and continued emphasis on last-mile transportation.

Read the full report, “Road to Next”, on Deloitte’s website.

Dallas Henderson, RizePoint
Retail Food Safety Forum

Does Your Ghost Kitchen Have Skeletons in Its Closets?

By Dallas Henderson
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Dallas Henderson, RizePoint

At the beginning of the pandemic, restaurants were hit hard. Fine dining sales dropped by more than 90%, casual dining was down 75%, and fast casual decreased by 65%. Nearly two years later, the restaurant industry is still reeling. Most restaurants experienced huge financial losses, and many couldn’t survive. Our industry continues to deal with supply chain disruptions, rising prices, skyrocketing rent, labor shortages and other major challenges. To make matters worse, new COVID variants and surging cases has consumers on their couches watching Netflix and avoiding dining out.

Back in March 2020, delivery orders surged by 67%, and now 60% of American consumers order takeout or delivery at least once a week. Online ordering is growing 300% faster than in-house dining. And operators are discovering a colossal opportunity: Ghost kitchens.

Ghost kitchens allow operators to utilize commercial kitchens without the overhead (and expense) of a full restaurant space and staff. They focus solely on prepping and cooking “to go” orders, and don’t have the option of onsite dining.

While the business model may have shifted, ghost kitchens still need to prioritize food safety and quality, just as traditional restaurant kitchens do. As such, they should:

  • Embrace digital tools. Tech tools make food safety and quality assurance much easier to manage. Use digital tools to elevate food safety checklists and audits, track ingredient lists, manage allergen information, spot trends, etc. These solutions can help staff manage food safety processes, quickly, easily, efficiently and accurately.
  • Use sensors. Install digital sensors to check equipment. For instance, these tools can alert the team if a refrigerator or freezer door is accidentally left open, or if temperatures drop below a certain level. Digital thermometers are also essential to check food temps and to ensure foods are cooked properly.
  • Use tech tools for ongoing training. All workers must be trained in food safety, not just upon hiring, but throughout their tenure. Use tech tools to provide regular training and safety reminders. Send small “chunks” of information right to employees’ phones and provide online resources so they have valuable information right at their fingertips. Communicate regularly with employees, sending updates on COVID protocols and other important safety information.
  • Be transparent. Food safety practices used to happen “behind the scenes.” Restaurant guests just assumed that employees were taking proper safety precautions. Today, though, everyone’s demanding safer practices, and they want to see staff wearing masks, more frequent sanitation of high touch surfaces, proper social distancing, etc. Since ghost kitchens are a virtual business, you’ll have to proactively spotlight the safety and quality protocols you follow to reassure customers (and prospects) that you take safety very seriously.
  • Use social media to spotlight your safe practices. Traditional restaurants display health inspection letter grades and reports in their dining areas or storefront windows. Since ghost kitchens don’t have storefronts or dining areas, you’ll need to find new ways to spotlight your commitment to safety. Post information on your website and social media platforms about your meticulous attention to safety and quality to make customers feel safe ordering from you.
  • Audit differently. Pre-COVID, restaurants and other commercial kitchens had third-party auditors come onsite occasionally to inspect their facilities. Now, food businesses—including ghost kitchens—must audit differently, especially when travel restrictions and other COVID-related disruptions make in-person auditing unfeasible. Use a combination of regular self-assessments, remote auditing, and onsite inspections (when possible) to ensure safety protocols are being followed, the facilities are spotless, equipment is working properly, etc. Previously, in-person audits were often viewed as punitive, with the Big, Bad Auditor coming onsite to point out a company’s mistakes. Now, teams are more engaged and invested in the process, making these inspections more collaborative and cooperative. Also, operators are conducting more frequent remote audits and self-inspections, rather than annual or bi-annual onsite audits, which is a great way to identify (and fix) infractions before they become liabilities.
  • Prioritize food safety. Even though your business model may have changed from a traditional restaurant to a ghost kitchen, your focus on food safety must remain top-of-mind. Follow food safety protocols: Cook to proper temps, store foods properly, don’t cross-contaminate, accommodate food allergies, etc. In addition, be sure everyone on your team follows COVID protocols: Frequent sanitation of high-touch areas, frequent hand washing, social distancing, masking and not working when ill.
  • Only work with vendors that prioritize food safety. Be aware of your vendors’ food safety policies. Only work with suppliers that adhere to the strictest safety and quality standards, and make sure that they’re properly certified. New software solutions allow you to easily manage and track supplier certifications.
  • Accommodate food-allergic guests. Train your staff about food allergies. Have a knowledgeable manager carefully oversee meal prep (and answer questions) for food-allergic customers. Designate an allergy-friendly prep area where foods can be prepared without contamination risk. Use clean and sanitized utensils to prepare allergy-friendly foods. Mark food-allergic guests’ meals with a frill pick or special colored container. Put allergy-friendly meals in separate containers for delivery so there’s no risk of cross-contamination.
  • Deliver foods safely. Delivery-only concepts must ensure that foods are kept safe from their kitchen to their customers’ homes. Your drivers should have equipment to keep foods at proper temperatures—hot foods hot, cold foods cold—during delivery. Drivers should also sanitize their hands frequently, including after they touch doorknobs, doorbells, money, pens, etc.

Ghost kitchens are an exciting new chapter for our industry. It has been wonderful to see savvy operators pivot to this new business model to accommodate increased consumer demand for “to go” meal options. While ghost kitchens operate without the overhead and infrastructure of traditional restaurants, they still must prioritize food safety every day, for every shift and every meal.

FDA

Highlights of FDA’s 2021 Achievements in Food

By Food Safety Tech Staff
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FDA

At the end of his reflection on FDA’s 2021 accomplishments in the food realm, Deputy Commissioner for Food Policy and Response Frank Yiannas stated that he believes collaboration will enable industry to “bend the curve of foodborne illnesses in this decade”. It would be a significant milestone, and in his latest FDA Voices blog, Yiannas reviewed a host of FDA achievements that bring his statement much closer to a reality:

FDA Acting Commissioner Janet Woodcock gives of full report on the agency’s work in the “FDA 2021 Year in Review: Working For You”.

Compare this year’s review with that of 2020, where Yiannas reflected on the agency’s Food Program achievements during the first year of the pandemic and the 10-year anniversary of FSMA.

Derek Stangle, Squadle
Retail Food Safety Forum

How the Pandemic Raised the Stakes for Food Safety

By Derek Stangle
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Derek Stangle, Squadle

Food safety concerns are constant across the food industry. From grocery stores to restaurants to meatpacking plants, the industry has doubled down on creating greater transparency into how food is stored, handled, cooked and delivered to the end customer. At the same time, new technology is helping food executives execute everything from contactless transactions to track, record, and promote their safety policies as never before.

Both independent restaurants and large chains see food safety as an issue that grew in importance during the pandemic. Diners have come to rely on restaurant policies for staff hygiene, such as washing hands, wearing gloves, and tracking personnel temperatures at the beginning of every shift. Their patrons expect that each restaurant will demonstrate how they are adhering to safety protocols. Restaurants are publishing their policies via signage, flyers added to take-out orders, social media posts, updated website language, or even safety protocols published to Yelp.

What’s more, their customers can easily access guidelines published by the CDC such as “Avoid Food Poisoning: Tips for Eating at Restaurants”, which explain how to check a restaurant’s safety score at the local health department website or find information, such as certificates that show kitchen managers have completed food safety training and posted it in the physical restaurant.

For restaurants, a transparent safety policy can become a competitive advantage, used to win new customers and attract the very best job candidates.

Grocery stores face similar challenges. From the checkout line to deli employees and the inventory clerks stocking the shelves, grocery employees are essential workers who also experience an unusually high level of public contact. According to the United Food and Commercial Workers Union (UFCW), which represents 1.3 million workers in food and retail, since the pandemic began, there have been more than 100,000 frontline and grocery union workers infected or exposed to COVID-19.

The UFCW has called for better safety precautions for grocery workers, including free PPE, paid sick leave, and vaccination prioritization that reflects their role as essential workers. As the national vaccination program picks up steam, more states are recognizing the need to vaccinate these essential workers, and they’ve been moved up in the prioritization line.

Until vaccines become more prevalent, however, grocery stores have adopted measures, much like those in restaurants, that are designed to protect both workers and shoppers. Mask mandates, one-way aisles, six-foot distancing, and Plexiglas shields at checkout are now commonplace.

Expanding Takeout and Delivery

Both restaurants and grocery stores have seen a huge shift to delivery ordering or curbside takeout over the course of the pandemic. Customers expect their favorite brands to give them the option of a frictionless, contactless experience where they have minimal contact with employees.

In order to offer a contactless takeout experience, both grocery stores and restaurants have invested heavily in technology. Curbside pickup and home delivery require an up-to-date website synched to inventory and menus. In addition, mobile apps enable guests to order remotely regardless of their location. The ability to pay via the app or a mobile wallet is the next step in a seamless contactless experience. Guests can pick up groceries or restaurant orders curbside, or pay a little more to have them delivered to their doorsteps.

The big advantage for shoppers is that they never come into contact with store employees, thus reducing the possibility of virus transmission. However, shoppers are finding that they also like the speed and convenience of the contactless experience. For this reason, many restaurants, such as McDonald’s and Chipotle, are expanding their drive-through capabilities.

Big brands like Amazon are doing the same with grocery. The Amazon Go concept store provides a “Just Walk Out Shopping” experience. There are no lines and no checkout. Customers download an Amazon Go app, and their items are automatically scanned and billed to their account. Other innovators include Wegman’s, which has partnered with Instacart to facilitate free delivery for its online shoppers, and brands like Safeway and Albertson’s, which also have curbside pickup facilitated via their mobile apps.

Back-of-House Technology

Back-of-house technology completes the food safety paradigm for restaurants and grocery stores. New systems that combine wireless networks with temperature monitors and data analysis make it simple and compulsory to track food temperatures throughout a facility. Remote sensors automatically record temperatures in coolers, the kitchen, and as orders move on to the customer.

Workflow automation in the back-of-house has become equally indispensable as food compliance has become increasingly more complex. Whether it’s a multi-unit restaurant or grocery brand, operators crave the data and visibility that only a digital solution can provide. Automation reduces the amount of time spent on tasks otherwise done manually, cuts down on the chance of errors, increases customer satisfaction and improves overall efficiency.

Technology helps the foodservice industry to stay on track, ensure compliance and encourages employees to stick with these practices. With a digital solution that keeps an electronic record of all the protocols that need to be completed, restaurants and groceries can record each inspection, such as taking photos of clean equipment and walk-in coolers at proper temperatures, as well as reminding them of their most important tasks and cleaning schedules.

FDA

FDA Receives Record Turnout As Industry Eager to Discuss New Era of Smarter Food Safety

By Maria Fontanazza
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FDA

Industry from the public and private sector joined for a record turnout during the FDA public meeting yesterday to discuss the agency’s initiative, a new era of smarter food safety. The meeting, which was at maximum capacity for both in-person as well as webcast attendance, began with a call to action from FDA Deputy Commissioner, Office of Food Policy and Response, Frank Yiannas on the importance of all stakeholders in the industry to work together to drive the change. As Yiannas has previously commented, the food industry is in the midst of a revolution. The world is changing faster than ever, and the FDA is challenged with not just creating a safer, more technology-centric and traceable food system, but also getting there faster and more effectively. “I’ve always believed that words we use are important,” he said. As the day’s various discussions would be around the new era of smarter food safety, Yiannas gave the audience a definition to consider: “A new era is a memorable or important date or event, especially one that begins with a new period in our history.”

FDA held breakout sessions centered on areas critical to the initiative:

  • Tech-enabled traceability and outbreak response
  • Smarter tools and approaches for prevention
  • Adapting to new business models and retail modernization
  • Food safety culture

During each session, FDA facilitators asked the audience questions. The following are some key points brought out during the breakouts.

Tech-Enabled Traceability and Outbreak Response

  • FDA should consider all parts of the supply chain when thinking about traceability
  • Take into account considerations for sharing sensitive data along the supply chain
  • Speaking a common language and creating data standards, along with necessary minimum data elements for traceability is critical
  • Better communication related to data sharing as well as more meetings with FDA and stakeholders, especially during outbreaks
  • Show industry the ROI of the data
  • Provide a roadmap or recommendation for companies on where they can begin on their traceability journey
  • Request for unity across government agencies (i.e., FDA, USDA), as it would provide more clarity during an outbreak

Smarter Tools and Approaches for Prevention

  • Trust and transparency are key
  • Safeguards that address privacy concerns and liability
  • Data
    • Data sharing: Concern about retroactive investigations
    • Types of data: With the “treasure trove” of existing data out there, which is the most important and helpful in improving food safety?
  • Environmental assessments and root cause analysis—more dialogue between FDA and industry

Adapting to New Business Models and Retail Food Safety Modernization

  • More need for collaboration
  • Globalization and use of best practices
  • Establishing a common standard to level the playing field
  • Establish best practices for tamper resistance
  • The last mile: Food safety training for food delivery personnel as well as harmonization for last mile delivery
  • More consumer education

Food Safety Culture

  • Emphasis on behavior and humanizing the work: Focusing on what happens within organizations at all levels
  • Clarity and communication are important
  • Leveraging current food safety culture best practices as well as any relevant existing standards (i.e., ISO, Codex)
  • Partnerships are critical, finding the balance between compliance and collaboration

Other Factors FDA Must Consider

The FDA meeting also included panel discussions that drew out the realities FDA must consider in this rapidly changing environment. “These are exciting times and this initiative is recasting our thinking in a whole new light,” said CFSAN Director Susan Mayne, adding, “We need to get ahead of these challenges and not be in reactive mode.”

Consumer awareness and demands for healthy, locally sourced and minimally processed food, for example, are creating increased pressures on food companies and retailers. In addition, the digital savvy and diverse Generation Z (the population born between 1990 and 2010, which will comprise nearly 40% of the U.S. population by 2020) has buying habits and a strong desire for transparency that is shifting how food companies will need to do business, according to Mary Wagner, president of MX Wagner & Associates.

“Trust represents safety, quality and commitment on a much more personal level to our consumers,” said Dirk Herdes, senior vice president at the Nielsen Company, emphasizing the need to communicate with authenticity. “Consumers have never been more informed, but never have been more overwhelmed with information. It’s not data—it’s trust. Trust is the new currency with which we’ll operate.”

FDA and USDA also remain committed to building a stronger relationship between the agencies, said Mindy Brashears, Ph.D., deputy undersecretary for food safety at USDA. “As science moves forward, we have to allow our policies to move forward to keep consumers safe,” she added.

The comments shared during yesterday’s meeting, along with written and electronic comments (with a deadline of November 20), will be considered as FDA puts together its blueprint document for a new era of smarter food safety. More information about providing comments can be found on the Federal Register page.