Food Industry Challenges
Volatility in commodity and menu item markets, like we see in the egg, poultry, beef, and dough markets, is currently a key business challenge faced by the restaurant industry. The assault on restaurant food costs has been unrelenting in recent years, as commodity prices continue to hit all-time record highs. Sudden movements in commodity prices impair forecasts, hinder risk management, and can force you to raise menu prices. To optimize profit margins, restaurateurs need to know their accurate forecasted requirements and coverage against them; whether it is fixed price forward purchases with suppliers or derivative hedges in near real-time. As menu item prices fluctuate, you need to see exactly how this will affect your operating margins based on current menu prices, so you can take proper action to hedge against the effects of market volatility.
InstaNext Coverage Analysis Solution
Many restaurants struggle with error-prone spreadsheets that are not reliable or sufficient for real-time scenarios. Companies need a flexible, easy to use software platform for managing contracts with suppliers, forecasts from multiple Purchasing Managers from decentralized restaurants and hedging that risk. A platform like InstaNext can accurately track and optimize complex scenarios, so you can make better decisions and ensure profits.
- Percentage Covered
- Covered / Uncovered positions
- Variance to budget
- Compile forecasts from multiple purchasing managers into one overall forecast
- Weighted average price per unit
- Forecasted Spend vs. Projected Spend
- Current Coverage vs. Actual Market
- Import data from Excel
- Historical P&L as of any date
- Realized and Unrealized P&L
InstaNext Commodity Trading and Risk Management (CTRM) software is available as a cloud-hosted solution and can also be installed on site. The software is widely used across the energy, commodity trading, consumer packaged goods, and agricultural industries. InstaNext supports all types of trades including forwards, futures, over-the-counter (OTC), swaps, foreign exchange, and options.