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Why Food Recalls Cost Restaurants More Than They Realize and How Technology Can Help Recover Losses

A supplier announces a recall of a specific lot of tomatoes, and the team at a multi-location restaurant group springs into action. The first order of business is figuring out which of the locations received the recalled tomatoes and pulling them from circulation as quickly as possible. There’s a sigh of relief when the product is pulled, but the work isn’t over yet. Next, the finance team has to figure out how many tomatoes were purchased, what portion was already paid for, and whether the company is eligible for credits or reimbursements from the supplier. Finding the answers can feel like a wild goose chase, especially for restaurant groups with multiple locations and hundreds of suppliers. Food traceability is getting more and more precise, but back-office finance processes don’t always keep up. Restaurants need a reliable way to trace recalled products through their financial records just as effectively as they [...]

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