Tech Reduces Grocery Food Waste, Hurting Food Banks

Grocery retailers are significantly reducing food waste through the adoption of advanced technologies, including artificial intelligence for demand forecasting and dynamic pricing strategies. These innovations are leading to more efficient inventory management, resulting in less surplus food that was historically donated to food banks. Afresh, an AI-powered demand forecasting tool, is currently deployed in over 12,000 grocery departments and claims to have prevented more than 200 million pounds of food waste. This technology helps stores reduce overordering by predicting sales volumes based on factors like weather forecasts and the timing of government assistance programs. Guac, another AI ordering tool, reports that its clients have achieved up to a 38% reduction in food waste. Crisp, a startup, utilizes AI to forecast demand and estimate the shelf life of perishable goods, enabling retailers to implement dynamic pricing to sell items before they expire. A study suggests that dynamic pricing alone can decrease waste by 21%. Additionally, consumer-facing applications connect shoppers with discounted food nearing its expiration date at stores and restaurants. While these technological advancements are beneficial for retailers and consumers seeking deals, they present a growing challenge for food banks. As grocery stores become more efficient at minimizing waste, the supply of donated food diminishes. This reduction in donations coincides with an increasing demand for food assistance, as more Americans face food insecurity and struggle to afford groceries. Joseph Slater, chief operations officer at Gleaners Food Bank of Indiana, noted that the food supply is tightening while the demand for charitable food is rising. This situation is forcing food banks to allocate more of their budgets to purchasing food, a necessity that was less pronounced when donations were more plentiful. In 2018, Gleaners Food Bank of Indiana, for instance, spent the majority of its budget on operational infrastructure like warehousing, with only 16% of its charitable food budget allocated to purchasing food, as most of its supply was donated. The increasing reliance on purchasing food strains the resources of food banks, which often operate on tight budgets and rely heavily on donations to serve their communities.