Like the pharmaceutical industry, the food sector faces increased regulatory pressure from government bodies such as the US Food and Drug Administration (FDA) and Federal Trade Commission (FTC) with standards being introduced to enforce food safety protocols and waste disposal procedures and provide visibility over food-management activities across the product life cycle. The FDA’s Food Safety Modernisation Act (FSMA), introduced in 2011, was an effort to shift food companies’ focus from responding to food contamination to preventing it. Players should be ready to quickly
Based on client and market experience, various companies are recognizing that restaurants, retailers, wholesalers, and even suppliers may not always be able to effectively trace their food products and identify and manage the individuals they have direct and indirect relationships with across each product’s lifecycle.
In addition, consumers are using smart devices more often for researching, purchasing, and reviewing food products from manufacturers to retailers to restaurants. Instant access to just about limitless data has impacted consumers’ expectations, demand for types of food products, and buying decisions.
The creation of a shared marketplace, using blockchain technology, can provide users with full transparency of their inventory levels along with real-time data updates on restaurant supply and demand.
- Reducing Food Waste
While grocers and even fast-food restaurants often catch flack for throwing away “perfectly good” food, statistics show us that consumers probably would have ended up throwing away excess or barely-expired food, anyway. According to the New York Times, around 40% of wasted food in developed countries is thrown out by the consumer, not the seller. While food waste is sometimes unavoidable, that’s in part because our systems for planning picking, shipment, and purchase are often not nearly strategic or data-driven enough.
Monitoring product more closely by utilizing a blockchain record of customer buying patterns, a product’s life course before and after it is in a grocer or restaurateur’s possession, and even more insightful intent will help those in the food-service industry make informed decisions to minimize food waste.
- Restaurant Management Processes
Automation is ready to essentially alter the food-service sector. The incorporation of smart contract technology could underpin transactions between humans and kiosks and a network of sensors could provide data about customer purchase patterns and food quality standards.
The standardized information could also be stored on the blockchain for analysis by decision-makers within a company regardless of their location.
The rise of completely-automated restaurants such as Spyce Kitchen is, as they describe, an almost direct response to the likelihood that chefs, servers, bussers, and other restaurant employees are almost certain to account for greater shares of the operating budget going forward. These are just two examples of how the blockchain may come to play a role in increasingly automated processes in the food service’s sphere.
With customers becoming more knowledgeable and demanding transparency, it is imperative for organizations to make data—such as
By using the blockchain platform, restaurants and wholesalers would have end-to-end visibility over the supplier relationship with real-time access to monitor and manage all supplier relationships. As restaurants become further technologically savvy, the incorporation of such applications into their service offerings would impact their customer base.