- Direct Financial Losses:
- Shrink: Spoilage is a major component of “shrink”—the loss of inventory through spoilage, theft, or administrative errors. Shrink often takes up 2-5% of a grocery store’s total revenue, with spoilage as a significant factor.
- Lost Sales: Spoiled goods cannot be sold, leading to both inventory loss and lost sales revenue.
- Profit Margin Erosion: Grocery stores typically operate with slim margins, around 1-3%. Spoilage can eat directly into these margins, turning potential profit into losses.
- Waste Management Costs:
- Disposal Fees: Spoiled food disposal incurs additional costs for waste management, which can be substantial for high-volume stores.
- Labor Costs: Handling spoiled items, restocking, and ensuring food safety require time and labor, raising operational expenses.
- Increased Inventory Costs:
- Reordering: Spoiled inventory requires reordering the same products, leading to higher purchasing costs.
- Overordering Risks: To prevent stockouts, stores may overstock perishable goods, which increases spoilage risks.
- Reduced Customer Satisfaction:
- Customer Dissatisfaction: Shoppers may stop visiting a store with frequent quality issues, resulting in decreased sales.
- Reputation Damage: Poor food quality can result in negative reviews and eroded trust, impacting long-term profitability.
- Compliance and Fines:
- Health Violations: Selling unsafe, spoiled food can result in fines or regulatory action, adding to financial losses.
- Spoilage-Related Shrink Rates:
- High-Spoilage Items: Fresh produce, dairy, meat, and bakery items account for up to 20-50% of spoilage-related shrink. This can lead to a 1-2% loss in overall sales revenue.
- Frozen Goods: Equipment failures in freezers can result in sudden and significant losses, despite lower spoilage rates for frozen items.
- Preventive Maintenance & Technology:
- Technological Investment: Effective refrigeration, real-time stock tracking, and proper inventory management help reduce spoilage and its impact on profits.
In total, food spoilage can reduce a store’s bottom line by 2-5% or more, depending on perishables’ volume, equipment reliability, and management practices.
ArtikControl™ consistently monitors your walk-in coolers/freezers and sends out alarms via text and email alerts when problems arise so that any failure or temperature problems are discovered and addressed as quickly as possible. Saving money and your food in the process
“Arti” our ArtikControl™ Dashboard offers real-time information, remote access, and intelligent energy controls. Giving you the constant information you need to monitor your systems. The flexibility of ArtikControl™ allows for the inclusion of multiple locations and multiple systems (walk-in boxes; reach-in displays and portable units) into one cohesive, technology-managed solution.
Arti’s user-friendly interface allows for easy, onsite adjustment and the networked solution allows for remote access and appropriate levels of information to be communicated specific to each stakeholder. In addition to reducing expense, the solution enhances more accurate budgeting and elimination of operational inefficiencies using reliable technology controls.
At Refrigeration Technologies’, we save our clients’ money by manufacturing and selling smart innovation, retrofit refrigeration energy-efficient technology. Our products pay for themselves within 7 years installed in most cases and the resulting savings can cut your energy bill by up to 30% or more! As utility rates continue to climb, there has never been a better time to invest in cutting-edge technology and see massive savings as a result.
Our technology controls evaporator fans, room temperature, compressor/liquid line solenoid, and defrost heaters while providing multiple alarms when systems deviate from normal use. This provides energy savings that are verified by third party administrators & engineers.
ArtikControl™ maximizes energy efficiency with less compressor run times resulting from shorter defrost cycles. Also a reduction in excessive temperature that occur with mechanical defrost units and the use of latent Energy in the box reducing compressor run times.
It’s important to conduct a thorough cost-benefit analysis and consult with experts in commercial refrigeration to determine the specific ROI for your retrofit project. Additionally, consider the unique factors of your business, such as its size, location, and operational requirements. In many cases, retrofitting commercial refrigeration systems can provide a positive ROI over time, as it not only reduces energy consumption but also enhances operational efficiency and reduces long-term operating costs.
We have the smartest refrigeration team ready to help you reach your goals to save energy and money. Our Engineers will come in and inspect your equipment for possible problems and offer recommendations on how to make your refrigeration system more efficient and economical.
Refrigeration Technologies will show you how to reduce food spoilage, monitor your temperatures and save energy. These are just a few of the benefits a refrigeration owner or operator will experience with the installation of ArtikControl™ WIC &WIF Technologies.
For more Information about some of the most common problems that occur inside walk-in freezers and how our Technologies can give you Peace of Mind, save energy and more importantly put money in your refrigeration operations, please contact us at 888-286-3091 or email me at MYannessa@refrigerationtechnologiesllc.com.
Do you have a Talking Freezer?
Contact Refrigeration Technologies’ today to schedule a No Obligation Energy Audit. (888) 286-3091
We are a US Veteran Owned Company. All the equipment is manufactured in the United States.
