Mette Lykke, CEO Too Good To Go.
More than 58 million meals have been saved by Too Good To Go since 2016, with the help of 30.1 million consumers and about 50,000 business partners. CEO Mette Lykke on her mission and how the Corona pandemic has led to entirely new business alliances.
This interview is an excerpt. Read the full text in foodservice Europe & Middle East 01/2021. Read now!
foodservice: Ms. Lykke, even though it's obvious, why do we need to do something about foodwaste?
Lykke: Foodwaste is responsible for 8 to 10 percent of all greenhouse gas emissions. That's insane! Those are emissions that don't do us any good. A new study shows that saving food is the best lever to win the fight against climate change. It's clear why: no one gets anything out of the food we waste - and the climate is definitely the big loser.
Your core business is saving fresh produce in supermarkets, bakeries and restaurants. Why should foodservice companies partner with Too Good To Go?
There are effectively four arguments for joining us:1. The good feeling of
being part of a mission dedicated to reducing waste. I feel that anyone involved with food, whether an individual or a business, has a responsibility to do everything possible within their scope to combat food waste. 2. The marketing aspect:
our platform has more than 30 million users. This means that our partners are given access to customers who did not know their brands or stores before. In addition, more than half of the customers return and buy at normal prices after getting to know the suppliers via Too Good To Go. 3. Employee motivation
increases after a company joins Too Good To Go. Employees also don't like it when food is thrown away. They feel that it is not right and also irresponsible. We've gotten a lot of feedback from both single businesses and chains that shows employees are happier after Too Good To Go came on the scene. 4. There is a strong economic argument
for the stores because the food they drop off through us would otherwise end up in the trash. All of the food that is saved with the help of Too Good To Go has a 100 percent impact on net profit, in some cases even more so because there would have been a cost to dispose of the leftover food.The Too Good To Go app is free for both consumers and businesses. How do you make sales?
Our entire business model is based on saving food. So it's a no cure no pay solution
for the businesses. If we don't save a meal, we have no revenue.
For every "Magic Bag" that is saved through the app, there is a fee. It varies a bit depending on the currency and country, but is usually rarely over one euro. So if a company sells such a "magic bag" for 4.50 euros, it is left with 3.50 euros in pure profit.
What foodservice segments do you serve?
We have many partners who are active in the quick service (QSR) and self-service sector. But there are also bistros and occasionally hotels involved. We've now also started working with corporate cafeterias because they often have tons of food left over after the lunch rush. Before the pandemic, the breakfast business of hotels had also started to increase.
How has the Corona crisis affected your business?
When the first lockdown occurred in March 2020 in almost every country where we operate, many
restaurants were unsettled and shut down their kitchens. This, of course, meant that no food was being made and therefore there was no food to be saved on a daily basis. And even though there were kitchens that stayed open for delivery, saving food was not the top priority. Our sales plummeted more than 60 percent.
Lykke shares many more insights into her business in the full interview. Read the full text in foodservice Europe & Middle East 01/2021. Read now!
About Mette Lykke
Mette Lykke joined Too Good To Go in 2016, about a year after the company was launched by five Danish businessmen. "It was quite a coincidence," she recalls, "I had just got on the bus in Copenhagen and struck up a conversation with the lady next to me. She showed me the app on her phone and that's when I thought to myself that a concept where foodwaste is reduced and everyone involved only wins is brilliant. So I approached the founders and asked if there was anything I could do to help. At the time, they were looking for energetic support from someone who knew apps, and I was able to do that(editor 'snote: Lykke co-founded the fitness app Endomondo and worked in that field for over ten years). What they were also looking for was an investor for their first round of funding. So I was able to offer them both. That's how I ended up at Too Good To Go."