Food Costs Hurt. This App Helps.

Affordable Fare That Helps the Planet

We’re five days removed from Thanksgiving, and by now, you’re probably getting sick of eating leftovers. But before you dump the rest of the bird into the trash, we’d like to talk about food prices and food waste. 

According to the United Nations’ World Food Programme: 

• One-fifth of food produced for human consumption is lost or wasted globally. This amounts to 1 billion meals/day.
• The total cost of food loss and waste for the global economy is estimated at roughly $1 trillion.
• Food loss and waste generates up to 10% of global greenhouse gas emissions … almost 5x the total emissions compared to the aviation sector.

By some estimates, global agricultural systems produce 4 million metric tons of food annually that — if equally distributed — would be enough to feed an extra 1 billion people. 

So the problem with food insecurity isn’t that we don’t have enough to feed Earth’s 8.2 billion inhabitants. It’s that we have too much, and due to poor practices and improper supply chain management, it’s now the foremost component going into landfills. 

Last week, we happened across a company that’s working with restaurants, bakeries and all sorts of food purveyors to solve that, and in the process, bringing consumers significantly discounted prices. 

But first, a quick primer on food inflation is worthwhile … 

Disinflation vs. Deflation 

The Consumer Price Index (CPI) is a measure of monthly and year-over-year price changes that impact Americans the most. The CPI peaked at 9.1% (for all goods and services) in June 2022 and has since subsided to a manageable 2.6%. 

Inflation for food at home (i.e., groceries) is down to 1.1% year-over-year, while eating out costs 3.8% more than it did this time last year:

However, consumers haven’t seen those costs subside along with the CPI readings. So if inflation is down, why haven’t prices come down with it? 

That’s because there’s a stark difference between disinflation and deflation. The former refers to a deceleration of the rate of inflation, whereas the latter is a decrease in price levels, reflected by negative CPI readings. 

In short, prices are still going up, albeit at a much slower rate than years past. And that, unfortunately, is historical precedent … especially when it comes to food prices. 

Going back to 1968, on a monthly basis, the price of food has only experienced deflation in 10 of 682 months. Put another way, food costs have only abated in 1.4% of all months dating back to President Lyndon B. Johnson’s second term. 

A Company Addressing Both Issues

Food waste and food inflation are both pressing concerns. But one company is working diligently to address both. 

Too Good to Go was founded in Copenhagen in 2015 with the initial goal of solving the food waste issue presented by buffet restaurants in Denmark. The company launched its app in 2016 and immediately realized that the concept could be applied to other food service providers and didn’t have to be localized.

Disclosure: Rise & Hedge is in no way affiliated with Too Good to Go. The company isn’t a sponsor nor an advertiser for our content. As part of our mission to improve access to information that betters the personal finances of our readers, we don’t only write about investing, retirement savings and money management. We are highlighting this company because we believe it can help you improve your household budget. 

Since launching, Too Good to Go has:

• Saved more than 350 million meals from ending up in landfills
• Amassed 100 million registered users
• Partnered with 170,000 businesses

How It Works

Per its business model, “Too Good To Go’s focus is to help save good food from going to waste. By doing so, we help businesses unlock revenue from their surplus, help consumers enjoy good food at great value for money, and empower our people and partners to help protect the environment.”

The process is fairly straightforward. Users download the app, register and then search for deals in their area, which offer substantial savings — half-price or less, according to its website.

Offerings range from bagels, pizza and sushi to salads, burritos and burgers. Once you identify a deal you like, you reserve it (offerings are limited per day), pay and then arrive at the predetermined pick-up time. 

To give you an idea of what you can expect, here are some examples:

• Antoniio’s Italian Market in West Palm Beach is offering a surprise bag containing a selection of large portions (“enough for two meals”) for $12.49. Normal price: $30.
• Masti Indian Street Eats in Atlanta is offering a surprise bag of curry, vegetables and protein for $6.99. Normal price: $21.
• Molly’s Cupcakes in Chicago is offering a bag of baked goods for $4.99. Normal price: $15.
• George’s Greek Grill in Los Angeles is offering a mixed surprise bag of Mediterranean fare for $6.99. Normal price: $21.

The holidays are a tough time of year for families. Household budgets get squeezed, and if there’s any way to help cut costs, you should consider it. Especially if it’s delicious and helps the planet. 

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Supplemental Reading

📊 The true cost of food waste: What your leftovers are really worth

Food waste doesn’t just impact your wallet—it’s an economic, environmental, and ethical issue that touches every corner of society. 

Let’s take a closer look at what’s at stake:

1. Economic Cost:

According to the USDA, Americans waste over $161 billion worth of food annually. That’s roughly $1,500 per household per year in uneaten groceries.

2. Environmental Impact:

Food waste accounts for up to 10% of global greenhouse gas emissions, equivalent to nearly five times the emissions of the aviation industry. 

Decomposing food in landfills releases methane, a greenhouse gas 25 times more potent than carbon dioxide.

3. Ethical Dilemma:

While 1 in 8 Americans struggles with food insecurity, nearly 30-40% of the U.S. food supply goes uneaten. This stark disparity highlights the inefficiency of food systems and the missed opportunities to feed vulnerable populations.

Takeaway:

Every piece of food tossed out represents wasted resources—water, energy, labor, and transportation. Making small changes, like meal planning and using apps like Too Good To Go, can help reduce waste and save money.

🍎 How to cut your grocery bill without cutting quality

With food prices continuing to climb, finding ways to stretch your dollar is more important than ever. 

Here are five practical tips for saving on groceries while still eating well:

1. Plan Your Meals:

Create a weekly menu based on sales and what’s already in your pantry. Planning eliminates impulse buys and reduces waste.

2. Buy Seasonal Produce:

Seasonal fruits and vegetables are fresher, tastier, and often cheaper. Check your local farmers’ market for deals.

3. Shop Store Brands:

Generic or private-label products often cost 20-30% less than name brands while offering comparable quality.

4. Go for Frozen:

Frozen fruits and vegetables are just as nutritious as fresh, last longer, and can be a fraction of the cost.

5. Use Savings Apps:

Tools like Ibotta, Fetch, and Too Good To Go help you find discounts and cashback on groceries.

Takeaway:

Smart shopping isn’t about sacrifice—it’s about strategy. By making intentional choices, you can reduce spending while still enjoying high-quality meals.

📉 Why food prices rarely fall: A historical perspective

Food prices are notorious for their “stickiness,” rarely dropping even when inflation eases. Here’s why this trend persists:

1. Production Costs:

Inputs like fertilizer, labor, and transportation are typically locked in at higher rates, making it difficult for producers to pass savings onto consumers quickly.

2. Market Dynamics:

Grocery retailers are slow to lower prices due to slim profit margins. Once consumers accept higher costs, companies often maintain them to bolster profits.

3. Historical Context:

Since 1968, food prices have only decreased in 10 of 682 months. Supply chain disruptions, global demand, and economic uncertainty have made price drops exceedingly rare.

Takeaway:

While overall inflation is slowing, food prices remain stubbornly high due to systemic challenges. Understanding this can help consumers make more informed decisions about budgeting and shopping.