Amid the issue of "food loss," which is the disposal of food that is still edible, a major convenience store chain has created a new system that uses AI = artificial intelligence to predict product sales at each store and lead to discounts in order to reduce unsold items such as bento boxes. We have developed it and will soon start a demonstration experiment.
Lawson, a major convenience store, has developed a new system that uses AI to predict sales of bento boxes and rice balls based on past sales performance and weather conditions at each store.
In order to prevent unsold food, the system calculates the amount and quantity of discounts based on forecasts and notifies the store.
Currently, the store decides on discounts based on experience, but it is expected that AI can be used to prevent unsold products more effectively.
From the 22nd of this month, the company plans to conduct demonstration experiments at more than 60 stores in the Tohoku region to verify the impact on profits and start operation at stores nationwide by the end of FY2023.
This convenience store chain is also aiming to put into practical use a service that notifies customers of discount information on products whose expiration date is approaching with a smartphone, and we plan to combine these services to reduce unsold products.
In the convenience store industry, FamilyMart is also expanding its efforts to reduce food loss, such as by introducing a system that makes it easier to discount unsold products.
Disposal costs can be reduced by nearly 30% annually
In the convenience store industry, in order to avoid running out of stock, products are frequently replenished, and as a result, a large amount of food such as rice balls and bento boxes is discarded.
According to a survey conducted by Lawson at 500 stores in Tokyo in fiscal 2019, it is estimated that the amount of unsold waste per store exceeds 2 tons per year.
Since most of the cost of disposing of food is paid by the store, a large amount of disposal also burdens the owner of the member store.
Under these circumstances, some stores are using their own discount sales to reduce waste prior to the introduction of AI-based systems.
At Lawson stores in Shibuya-ku, Tokyo, we offer a 50 yen discount for rice balls and bento boxes that have an expiration date of the evening, and a 30 yen discount for the next morning.
There is also a sticker in the store explaining that we are offering discounts to reduce food loss, and as a result of these efforts, we were able to reduce food disposal costs by nearly 30% in one year.
In the past year, sales have declined due to the effects of the new coronavirus, but by cutting disposal costs, the decline in profits has been suppressed.
Takashi Fujiyoshi, director of the franchise company that runs this store, said, "I was very guilty about disposing of food that I could still eat. I started from the store, but with the support of the headquarters, it would be better. I think we can reduce waste. "