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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
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IllinoisRestaurants.org CookCountyIl.gov/Recovery
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
https://www.illinoisrestaurants.org/?https://www.cookcountyil.gov/recovery
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Panelists
Anh Hang
Non-Foods Specialist
Performance Foodservice–
Chicago
Corben Sherlock
Lead Regional Manager
IGS Energy
Dan Killins
ARM - Loss Control
Program Manager
EMPLOYERS
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
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Corben Sherlock
Lead Regional Manager
IGS Energy
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Private
Family Owned and Operated
Natural Gas Supplier
Electricity Supplier
Solar Provider
LED Upgrades
Who is IGS Energy?
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*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?
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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
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Eliminating 3rd Party & Broker Costs
10/21/2020 8 |
UTILITY (Comed,Peoples, Nicor Etc)
SUPPLIER (IGS)
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Natural Gas & Electricity Contracts: When Did You Last Re-evaluate?
1
UTILITY PROGRAM
(variable pricing)
2
ROLLOVER CONTRACT
(variable pricing)
3
UNDER CONTRACT
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Is it a good time to buy?
What is the market doing?
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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.
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Natural Gas & Power Trend Together
• 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
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Natural Gas & Power Trend Together
• 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
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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
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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
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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
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Corben Sherlock
Corben.sherlock@IGS.com
312.262.2265
Thank You!
mailto:Corben.sherlock@IGS.com
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Anh Hang
Non- Foods Specialist
Performance Foodservice -Chicago
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Put that on the right plate!
Packaging for Success
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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
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Product Cost
Opportunity Cost
Efficiency cost
3 Types of Cost to Look for in Packaging
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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…
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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
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Product Cost: Understanding what container is best for your food
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Choose the minimal amount of containers that will work for most of your food
Side Dish
Entrée
Soup
Product Cost – Less is More
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Opportunity Cost
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Understand What’s Going In
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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
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And Remember…
By using the right packaging, you will be able to reduce cost, time and increase more sales going into the winter
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Dan Killins
ARM Loss Control Program Manager
EMPLOYERS
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• Risk Manager – 20+ years
• Disney - Risk Management, Global Food & Beverage
• National Restaurant Association – Co-Chair, Safety and Risk
Management Workgroup
• EMPLOYERS – 5+ years
Introduction
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• Costs – Above and below the waterline
• Safety Culture
• Benefits
• Three focus areas
• How do I apply this every day?
Agenda
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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
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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?
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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?
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• 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?
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• 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?
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Q&A
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