When I was a kid I used to work at Wendy's. When I had burgers that were sitting on the grill too long and starting to dry out, we'd put them into a big container to be later dumped into the chili.
We called it "chili'd out."
Dave mentioned the "chili burgers" because he gave a talk to some Harvard or Stanford business majors, who basically told him that it was a consumer ripoff and ethically wrong to take burgers and make chili out of it. No matter how he explained it (he owned the meat, and until he sold it he could with it as he pleased, so long as the customer was pleased with the final product)... no matter how he explained it, they just didn't get it. You could tell he was dismayed and frustrated by the exchange with the students and finally just joked that a Harvard education just ain't what it used to be.
To anyone in business with an ounce of common sense it is just bad business not to do everthing possible to cut waste in order to provide the highest quality products at the lowest possible cost.