Sodexo Takes a Bite Out of Rising Food Costs
By Darla Mayse, Senior Recruiter

Consumers across the country, whose budgets are already stretched by high energy costs, are now feeling the effects of those costs at the grocery store. Food prices have increased at a rapid pace within the last year – the fastest rate since the '90s. According to the U.S. Department of Agriculture, U.S. food prices rose 4 percent in 2007 compared with an average increase of 2.5 percent annual rise during the last 15 years. Additionally, the agency says 2008 could be worse, with a rise of as much as 4.5 percent.

Sodexo, one of the world’s largest food and facilities service contractors, has shown its ability to continue making every day a better day for customers even in an era of soaring food costs. Our continuing promise to create an outstanding experience for our customers has enabled us to identify new ways of providing the same level of service without sacrificing quality. Larry Yonda, Systems Executive Chef for Sodexo Healthcare Services in Houston, Texas, spoke of two very successful initiatives recently implemented within his area of responsibility that have tackled food inflation. In an effort to become competitive with local fast-food chains’ low-cost combo meals, Sodexo has begun its own combo meal programs at various hospitals throughout the system. “The 'Mighty Bites' program provides a big bite at a small price,” says Larry. To generate buy-in for the program, Larry held a contest for chefs in the hospital system to produce a healthy and delicious sandwich for a marketable price. The winner would have his/her item featured as the “Mighty Bites” meal. That winner was the Asian Chicken Wrap, which has quickly become the most popular meal, offering the wrap, chips and 20 oz. fountain drink for less than $4.00.

Larry Yonda, Systems Executive Chef for Sodexo Healthcare Services in Houston, Texas

Yet another initiative that has proved beneficial in keeping costs low while keeping quality high has been a reduction in the use of paper goods, which have also been impacted by inflation. Larry stated, “It made more sense for us to begin looking at other ways to package our grab and go items.” Taking a hint from airport vendors and convenience stores, they began wrapping sandwiches in cellophane wrap versus using plastic containers.

“Bottom line…” says Larry, “This has caused us to change the way we do business.”

Sodexo will continue to identify innovative ways to provide high-quality, affordable services to our customers, even in a challenging economic environment.