Much like the cost of condiments, cooking oil expenses can add up if not monitored closely. Every unused drop of oil is a direct hit to your bottom line. Operators can’t afford to let valuable product go to waste. When taking a closer look at managing this asset, you may discover additional costs not typical of every condiment. The potential for savings comes down to the how and when you purchase it.
Bulk Oil vs the "JIB" Approach
Commonly referred to as JIB (jug-in-box), boxed oil can be purchased directly from your food distributor. Another common option is a bulk oil solution, combining fresh oil delivery and used oil collection into one vendor or system. Though a bulk oil program has its advantages, there are distinct benefits to keeping the two separate - controlling inventory and food costs among them. Below we provide a high-level comparison of two distinct solutions, outlining storage, use and quality of fresh oil.
2 Containers to manage
1 Container to manage
Both existing and new oil stored in same container
Boxed oil packaged separately and used according to expiration date
Avg. shelf life 3 months
Avg. shelf life 6 months
Oil exposed to air at multiple transfer points
Oil sealed in increments, fraction of oil opened at a time
Monthly service or maintenance fees
No monthly service fees
Minimal control over oil type, amount and delivery
Full control over oil management
Leaves residual oil to waste*
Uses every last drop of new oil
*Often fresh cooking oil is "topped" off to reach capacity of the bulk oil tank. Operator’s may find they have up to three weeks of inventory on hand at one time. This can add up week-over-week, adversely impacting food cost percentage.
Above all benefits, a solution that flexes with your business is key to helping YOU manage profit margins. In today's changing climate, your supplier should provide the volume of oil you need - and just that!
A partnership with DAR PRO Solutions frees management to make their own decisions on oil purchases, and eliminates possible service fees, distribution and reporting costs that are figured into a bulk oil service contract.
Dave Stiles has done his homework on controlling fresh oil costs at his restaurants. Conducting his own ROI analysis, he recognized a $30,000 savings over a 10-year period by switching to JIBs over bulk delivery service. This doesn’t include additional savings that could be realized from your food distributor’s contract pricing. "Adding JIBs to fulfill contracted food delivery amounts can save restaurants considerably", said Stiles.
“The cost of fresh oil at my bulk stores runs about $1,000 a month; using JIBs, I pay $800 a month. Additionally, my used oil rebates aren’t automatically figured into my bulk oil costs. I get a rebate check with JIB service and can apply that money where I choose.” Steve Stratton, Owner, Ohio
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