Food rescue app expands store network to western Canada

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A software app that partners with grocery stores to sell near-expiry food for half the price has expanded across the country, adding 39 stores in Calgary to its network.

Montreal-based FoodHero has partnered with grocery company Empire — which operates several chains including Safeway, Sobeys and IGA — to double its store count, and the service is now available in every province and territory.

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The app’s software is connected to store inventory systems, so freshness audits identify products that are nearing their expiration date or need to be replaced, said Jonathan Defoy, CEO of FoodHero.

Products sold on the app are typically more expensive items such as meat, ready meals, dairy and fish.

FoodHero, founded in 2019, is not the only app selling such products. Apps like Too Good To Go and Flashfood also offer similar services. Their growth comes as people find it increasingly difficult to afford food, while many unsold products are being thrown out to make room for new stock.

According to nonprofit research group Vibrant Communities, food bank visits in Alberta increased by more than 94.1 per cent between 2019 and 2023. One in five Calgarians cannot afford healthy food. Seventy per cent of Albertans surveyed by Dalhousie University’s Agri-Food Analytics Lab in 2023 said they feared compromising on nutrition was ruining their health.

Meanwhile, Canadian retailers and grocers waste about 50 million tonnes of food each year, most of it perishables like meat and vegetables.

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Defoy said he got the idea after watching a documentary about food waste. “I saw the vision very clearly,” said Defoy, who at the time was in the process of selling his former company, which sold “productivity” software to businesses.

“I recognized that name right away, too.”

He said he had intended to expand beyond Quebec, but his plans were thwarted by the pandemic, which diverted grocery retailers’ attention from growing their business to complying with numerous restrictions.

“We lost 25 percent of our revenue overnight, literally from March 12 to March 13, 2020.”

However, as people began to grapple with affordability issues, demand for FoodHero’s services increased.

Defoy downplayed any concerns about the health risks of products sold through the app, saying the products are always sold before their expiration date and if customers find anything faulty in them, they can apply for a refund by calling customer service.

“But it’s really, really, really, really rare that we have food-related issues. We’ve never had a situation where anyone has gotten sick or had anything serious happen to them,” Defoy said.

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