Rising food costs are forcing cooking teams for the elderly to devise budget and management strategies.
At the root of the problem is the fact that operators must limit the impact of increasing food costs on profits without sacrificing overall quality. That’s why Amy Robinson, Solstice Senior Living’s national director of culinary services, provides direct guidance to kitchen staff on how to properly read financial statements and make adjustments accordingly.
“If they don’t have full access to their P&L and final financial statements, we’re doing them a disservice,” Robinson said during a panel discussion at the recent Senior Housing News DISHED conference in Chicago. mentioned in. “The better they are at not only reading, but also understanding financial statements, the more powerful leaders they can be.”
Solstice isn’t the only senior living operator looking to incorporate more creativity into its culinary planning process: 12 Oaks Senior Living and Cordia Senior Living are also adjusting their operations to fit a new cost environment accentuated by a new generation of residents.
Compensate for rising food costs
The prices of certain ready-made foods and ingredients have gone up and down since the pandemic began. It lasted until 2024.
Solstice’s food budget is increasing by 2% to 3% annually, with some fluctuations due to the lingering effects of the COVID-19 pandemic.
According to Regional Vice President Travis Wick, the daily cost of food for 12 Oaks Senior Living residents typically ranges from $550 to $758.
Paige Hoffman, director of sustainability for Cordia Senior Living, said the company is budgeting annual food costs at $13,500 per unit, which is 5% more than last year’s food costs and 2022 food costs. This reflects an increase of 8.5%, he said.
Complicating the work of senior living culinary teams is the fact that there is a next generation of seniors with different needs and desires than previous generations.
Cordia has adapted its operations to baby boomers looking for a more premium experience, and Hoffman said he thinks baby boomers will want that. The company has responded to these demands by introducing products such as latte art instead of drip coffee.
Saving money can start from a small amount
Given that rising food costs are just baked into the process, the senior cooking team is considering tweaking its operations to keep costs down. 12 Oaks has adopted a “cafeteria-style line” serving method, where residents choose only what they want on their plate. Doing so “reduced costs significantly,” Wick said.
One strategy the company has taken is to make dinner more luxurious than before. Wick noted that in some regions, lunch is often a hearty menu of fried chicken, mashed potatoes and pot roast. However, as the company began offering these products during dinner service, more families ate with residents, and in the process, they often purchased products such as cookies and pies. Profits have improved.
“If you’re charging $10 to $15 a person and you have more and more people coming that way, then it’s a business,” Wick said. “You’re generating revenue, and that revenue goes back into food, which creates more demand.”
Both Solstice and Cordia have transitioned to reusable containers for to-go items, and Hoffman says they’ve seen an almost immediate return on investment within six weeks of implementation.
“It was easy,” Hoffman said. “Once I decided what my choice was, I was able to switch right away. And I don’t see any reason not to continue doing that.”
Solstice has fine-tuned the way it works with group buying organizations to “maximize bang for the buck.”
“This is between knowing your vendors well and making sure you train chefs not only how to cover their food costs, but also how to do that and how to navigate the intricacies of using GPOs. “It’s like a cross between,” Robinson said. He said.
Wick pointed out that 12 Oaks uses a group called Nutrition Systems to calculate menu costs. As a result, the amount the company spends on food for residents each day has been “significantly reduced,” Wick said.
Community events that bring families together, such as Mother’s Day brunches and community book clubs, are also an additional source of income for senior housing managers.
“Think outside the box. You don’t necessarily have to sit down and eat a meal,” Robinson said.
Wick suggested limiting the number of guests because it would reduce the amount needed to serve guests and provide more timely service. That way, your guests will come back and spend more money. Robinson added that doing so adds a sense of urgency to the event.
“You can start small, starting at $5 per ticket and gradually increasing your revenue until you get to $30 per plate,” Wick said.
Additionally, managers are looking at ways to reduce turnover among their kitchen staff. Travis Wick, regional vice president at 12 Oaks Senior Living, said his team is given much of the autonomy to control who they hire, and that their hiring practices also focus on how stable the hours and working conditions are compared to nearby restaurants. He noted that extra training is often provided for directors to boost emotional intelligence, which has resulted in lower turnover.
“[It’s] “This meant a lot to us and allowed us to talk to people on a level that most restaurant people didn’t learn,” he said.
Hoffman added that what happens with meals and employee training impacts a company’s overall bottom line.
“If we do a really good job in every aspect of the meal, we’re making money, but we’re also making money for the business,” she said. “Our biggest concern is making sure that what we’re doing today can continue for a long time.”
