Showing posts with label Supply Chain. Show all posts
Showing posts with label Supply Chain. Show all posts

Sunday, February 9, 2025

Food Marketing Calendars in TRUMP 2.0

 


The restaurant industry has long relied on food marketing calendars to drive menu innovation, seasonal promotions, and consumer engagement according to Steven Johnson Grocerant Guru® at Tacoma, WA based Foodservice Solutions®. But in a politically charged environment where tariffs, supply chain disruptions, and fluctuating commodity prices loom large, menu planning in TRUMP 2.0 could become more complex than ever before. With shifting policies on trade, labor, and energy, restaurants and food retailers must brace for unpredictable economic headwinds that could disrupt both ingredient availability and pricing.

The Problem: Political Volatility Meets Menu Planning

Restaurants thrive on consistency, but political decisions—especially regarding tariffs and trade agreements—can send shockwaves through the supply chain. From farm to fork, operators will have to rethink their approach as they contend with rising costs and shortages.

Three Key Disruptions Likely to Impact Foodservice

1.       Fresh Produce: Tariffs & Import Restrictions
Many fresh produce items, such as avocados, tomatoes, and citrus, are heavily imported. Potential new tariffs on Mexican and South American produce could significantly increase costs, forcing restaurants to either absorb the cost or pass it on to consumers. Additionally, labor shortages due to immigration policy changes may affect domestic farming output, reducing availability of key ingredients.


2.       Meat & Bakery: Grain & Feed Cost Volatility
Meat and bakery products are especially vulnerable to supply chain disruptions. Increased tariffs on grain imports would raise livestock feed prices, impacting beef, pork, and poultry costs. Additionally, disruptions in wheat and corn pricing could drive up bakery and tortilla costs, making staple menu items like sandwiches, burgers, and breakfast offerings more expensive. Restaurants depending on flour-based goods could see profit margins squeezed.

3.       Packaging & Gasoline: Rising Transportation Costs
Supply chain logistics depend heavily on fuel and packaging. If gasoline prices rise due to changes in energy policy or geopolitical instability, the cost of transporting food and beverage products will skyrocket. Meanwhile, tariffs on imported paper and plastics could inflate the cost of takeout packaging, forcing brands to either find local alternatives or raise menu prices.

Four Safe Planning Strategies for Restaurants in TRUMP 2.0

1.       Diversify Supplier Relationships
Restaurants should establish relationships with multiple vendors—both domestic and international—to hedge against supply chain disruptions. Seeking out regional producers for key ingredients can mitigate the impact of tariffs and transportation cost increases.


2.       Adjust Menus with Seasonal & Local Ingredients
A flexible, rotating menu that emphasizes local and seasonal ingredients can help offset cost volatility. Instead of relying on year-round imported produce, leveraging local farmer partnerships can provide cost stability and promote sustainability.

3.       Rework Packaging & Delivery Models
With potential increases in packaging and fuel costs, restaurants should explore alternative packaging solutions, such as compostable materials sourced domestically. Additionally, partnering with delivery companies that optimize routes and fuel efficiency can help control delivery costs.

4.       Proactive Consumer Messaging & Transparency
Transparency with customers about price changes, ingredient swaps, and menu adjustments will be critical. Restaurants should use their marketing channels to communicate these shifts in a way that reinforces brand authenticity. Messaging that educates consumers on why certain changes are occurring—while highlighting sustainability or quality improvements—can build trust and brand loyalty.


Don't Be Silent



Think About This

The restaurant industry has always been resilient, but menu planning in TRUMP 2.0 will require even more agility. Political shifts, tariffs, and supply chain turbulence will create challenges, but smart operators who plan ahead can turn potential disruptions into opportunities. By staying ahead of economic changes, sourcing strategically, and crafting thoughtful messaging, restaurants can not only survive but thrive in the coming years.

Invite Foodservice Solutions® to complete a Grocerant ScoreCard, or for product positioning or placement assistance, or call our Grocerant Guru®.  Since 1991 Foodservice Solutions® of Tacoma, WA has been the global leader in the Grocerant niche. Contact: Steve@FoodserviceSolutions.us or 253-759-7869



Wednesday, August 9, 2023

Restaurant Supply Chain Solutions by Instacart

 


With sales are rebounding at restaurants reassuring legacy restauranteurs that there is light at the end of a dark tunnel. customer expectations are even higher.  Many restaurants are running out of popular items creating customer discontent.  Success does leave clues and in 2023 technology can help solve short term supply chain solutions according to Steven Johnson Grocerant Guru® at Tacoma, WA based Foodservice Solutions®.

Today, some operators have found a more convenient solution for sudden out-of-stocks: Instacart. While doing a deep dive into its customer data recently, the grocery delivery company discovered that a chunk of its users were not individual consumers but small and medium-sized businesses. 

What’s more, those businesses were good customers. They showed better retention, placed larger orders and shopped at a greater variety of retailers compared to the average consumer.

Instacart dug deeper and learned that the release of pent-up pandemic demand, combined with supply chain backups, had made it more difficult for busy restaurants to stay stocked. “That’s where they started to experiment and use Instacart and become attached to not having to go to the store themselves,” said Andrew Nodes, Instacart’s VP of business and supply chain.

Now, the Instacart is embracing this growing segment with a new division called Instacart Business. The separate experience within the Instacart app allows restaurants and other small to medium-sized businesses to create an account. These accounts have features geared toward businesses, such as tools for tax exemptions and invoicing, and will show products they’re likely to be interested in, like bulk items.


All food retailers need to know that Instacart Business launched earlier this year and has been processing millions of orders each quarter. Because Instacart is a privately held company, Nodes would not reveal more specific details, but suggested that the company sees a big opportunity there.

“We’re making a big bet on this space, and we think it’s gonna lead to medium- and long-term growth opportunities for Instacart overall,” he said. 

To be clear, Instacart has no intention of disrupting the existing restaurant supply chain. It’s not going to be showing up in semi trucks for weekly deliveries. But it can be helpful in a pinch. 

“I think of Instacart as being more complimentary to [restaurants’] current supply chain,” Nodes said.

He gave the example of a chef who needed a specialty lemon olive oil that was not carried in bulk by his regular distributor. But he was able to find it on Instacart. 

Currently restaurants are using the app to buy all kinds of things, from fresh produce to cleaning supplies and canned goods, Nodes said. There are 1,200 retailers on Instacart, from wholesalers to grocers, pharmacies and convenience stores. Restaurants tend to shop at a variety of places. Their orders are fulfilled by what Instacart calls “Shoppers”—independent contractors who go to the store, buy the items and deliver them to the customer.

That convenience comes at a cost: Instacart’s delivery fees start at $3.99 and scale up based on things like geography and order size. But it also saves time. In a profile on Instacart’s website, the owners of five-unit Connie’s Chicken & Waffles estimated they had saved 2,000 hours since they started using Instacart to order supplies.


“It was just too much time away from the business,” Shawn Parker said. “We were going to Restaurant Depot almost every day, to the point where we were on a first-name basis with the team there and the other restaurant owners coming in daily.“  Now, we can just order directly from them through Instacart and have it all delivered.” Don’t run out, be prepared for success.

Are you ready for some fresh ideations? Do your food marketing ideas look more like yesterday than tomorrow? Interested in learning how our Grocerant Guru® can edify your retail food brand while creating a platform for consumer convenient meal participation, differentiation, and individualization?  Email us at: Steve@FoodserviceSolutions.us or visit: us on our social media sites by clicking one of the following links: Facebook,  LinkedIn, or Twitter



Wednesday, August 2, 2023

The ‘Halo’ of Better-for-You’ Might Not be Growing as Fasts as Many Food retailers had Hoped

 


Many regular readers of this blog have seen or visited an indoor farming operation and looked at it as both an opportunity to increase freshness and reduce delivery cost.  According to Steven Johnson Grocerant Guru® at Tacoma, WA based Foodservice Solutions®, that day may come but is does not look as if it will came as fast as many would have liked.

Have you heard that AppHarvest, a high-tech indoor farming and food sustainability company, has filed for Chapter 11 bankruptcy protection and is “pursuing a financial and operational transition to enable the company to reduce its outstanding liabilities,” according to an announcement Monday from the Morehead, Kentucky-based company. 

Consider that the announcement by AppHarvest comes about a month and a half after Newark, New Jersey-based vertical farming company Aerofarms filed for Chapter 11 bankruptcy. 

In a recent article Henry Gordon-Smith, founder and CEO of consulting firm Agritecture, which works with vertical farm companies, stated that many companies in the vertical farm industry have reached a do-or-die moment, with investors demanding they begin delivering results.  

Recently, AppHarvest noted that it has a commitment of approximately $30 million of debtor-in-possession financing from its largest secured creditor, Equilibrium, to maintain its farming operations in Morehead, Richmond and Somerset, all of which are in Kentucky. 


Times they are again changing, the company also plans to sell its operation in Berea, Kentucky, for $3.75 million, either to its distribution partner, Mastronardi Produce, or one of its other affiliates, the company said. The goal is to “restructure the operations at the company in an effort to maximize the value creditors can expect to achieve and to preserve jobs.” 

AppHarvest CEO Tony Martin stated, “The AppHarvest board of directors and executive leadership evaluated several strategic alternatives to maximize value for all stakeholders prior to the Chapter 11 filing,”… “The Chapter 11 filing provides protection while we work to transition operation of our strategic plan, Project New Leaf, which has shown strong progress toward operational efficiencies resulting in higher sales, cost savings and product quality.” 

Not the first, AppHarvest is following the lead of its competitor, AeroFarms, which announced it was filing for Chapter 11 bankruptcy protection on June 8. Similarly, AeroFarms said it's working with investors to secure $10 million in debtor-in-possession financing, at the time of the announcement. The company said it also was exploring other financing “to maximize the value of the company and recovery to creditors.”  

Guy Blanchard, president and CFO of AeroFarms had stated, "We are fortunate to have existing investors who continue to believe in AeroFarms and are confident that we can hit our targeted profitable operations for our Danville farm," …"There is incredible consumer and customer interest for our market-leading microgreens, and we are excited to continue be able to build our business to meet that demand." 

In April, Orlando-based vertical farm Kalera also filed for bankruptcy protection.

Now then, Gordon-Smith, who has written extensively about vertical farming, said that while there are numerous factors at play challenging the vertical farming industry, it’s mainly investor confidence that is causing the current shift in the market.



“This is what’s happening to everyone—the funding context shifted,” he said, adding that higher interest rates and the banking crisis earlier this year has investors demanding results. 

He noted in a column published June 13 in The Food Industry, that the vertical farm industry has experienced “a staggering 91% year-on-year decline in venture capital investments in indoor farming, according to Pitchbook.” 

Vertical farms also have a hype problem, according to Gordon-Smith, who explained that they frequently sell the idea to investors that their operation will be environmentally sustainable, but he recently wrote that “most vertical farms today are powered by non-renewable energy sources and emit significantly more carbon than their field-based counterparts.” 

Many have a problem with focusing too much of their efforts on both advertising and research and development. “That's fine and I don’t blame, because that’s where the money was flowing, but that flow has shifted,” he said.  



Operating costs also pose challenges to the industry, particularly energy costs, which can be more volatile than other variable costs. But he added that the cost of energy in the U.S. has stayed relatively stable, compared to its European counterpart.  

Despite the bankruptcies of three players in the controlled-environment agriculture industry, Gordon-Smith said he believes the industry is resilient. 

Climate change and other factors will necessitate indoor farming. “Those fundamental drivers haven’t gone away,” he said. 

Are you ready for some fresh ideations? Do your food marketing ideas look more like yesterday than tomorrow? Interested in learning how our Grocerant Guru® can edify your retail food brand while creating a platform for consumer convenient meal participation, differentiation, and individualization?  Email us at: Steve@FoodserviceSolutions.us or visit: us on our social media sites by clicking one of the following links: Facebook,  LinkedIn, or Twitter



Saturday, July 30, 2022

McDonald's Canada Quietly Doing Good

 


There is a reason that industry leading companies are industry leading according to Steven Johnson, Grocerant Guru® at Tacoma, WA base Foodservice Solutions®.  Here is something many of you may not know. As part of McDonald's Canada's ambitions to help feed and foster communities, the company is making important changes behind the scenes across the country with the planet in mind.

Yes, McDonald's Canada is part of a global journey to source 100% of McDonald's primary guest packaging from renewable, recycled or certified sources by the end of 2025 and is part of the McDonald's global pledge to achieve net-zero greenhouse gas emissions by 2050. 

Currently, McDonald’s Canada is helping create an impact in the communities where it operates with the planet in mind by committing to the company’s global goal to source 100% of primary guest packaging from renewable, recycled, or certified sources by the end of 2025. (CNW Group/McDonald's Canada)

Michèle Boudria, President and CEO, McDonald's Canada, stated, "We recognize we have an important opportunity to help serve up a better tomorrow, and the actions we're working on today are an investment in our future,". "When you live and operate in almost every Canadian community, serving more than a million guests every day, every single change – big and small - can have a noticeable impact."

McDonald's Canada continues to make important changes behind the scenes and in restaurants across the country, so Canadians can feel good about enjoying the McDonald's they love.



Here are some of the steps McDonald's has taken so far:

In 2019, McDonald's Canada eliminated more than 1,300 tonnes of paper from the Canadian system annually by introducing new McWrap packaging, and 20% smaller, 100% recycled fibre napkins. 

Also in 2019, the brand stopped using extruded polystyrene foam from gravy bowls and breakfast platters, removing more than 120 tonnes from the Canadian system annually.

In late 2021, McDonald's Canada removed certain single-use plastics in its restaurants across the country, namely plastic cutlery, stir sticks and straws, eliminating approximately 700 tonnes of plastics from the Canadian system annually, with almost 370 tonnes of this attributed to plastic straws alone.

Following the transition from plastic to paper straws, the brand gave a "second life" to a portion of its remaining single-use plastic straws through a partnership with The Rogerie, turning the straws into limited edition trays, which serve as a canvas for artwork. 


In May 2022, we completed a paper fibre-reduction initiative for our McCafé hot cups. This reduction will eliminate nearly 700 tonnes of paper fibre from the Canadian system annually.

In mid-July 2022, McDonald's Canada re-introduced its Reusable Travel Mug policy, encouraging guests in Canada to bring their own clean, reusable travel mugs for use with their hot McCafé Premium Roast Coffee and Tea orders made at the Front Counter.

In May of 2022, McDonald's Canada, together with other brands, joined a six-month pilot program called 'Return-It to Reuse It and Recycle It', managed by Encorp Pacific, better known as Return-It. This pilot is dual-focused, aiming to keep more single-use cups out of landfills by giving consumers a convenient place to recycle them as well as introducing a reusable cup program, with consumers signing-up to use reusable cups that will be washed and returned to retail locations. McDonald's Canada is actively participating in the single-use cups reduction part of the pilot and is excited to explore the reusable cup part of their partnership with Return-It in the future. Both the single-use cups and the reusable cup program will be facilitated via the use of specialized collection bins, which are made from recycled plastics and have been made available in commercial as well as on-street locations.


McDonald's Canada will continue to make choices and take action to invest in our future. This includes:

Working towards its global ambition to drastically reduce the virgin fossil fuel-based plastics used in Happy Meal toys and offer Happy Meal toys made from more renewable, recycled, or certified materials by the end of 2025.

With its supply chain distribution partner, Martin Brower, McDonald's Canada added the first-ever electric vehicle (EV) to its distribution fleet in April 2022, a zero-tail pipe-emission tractor from Volvo. The new Volvo VNR Electric Class 8 tractor is being trailed to help with distribution to restaurants in the Montreal area. Are you making a difference? Are you leading?

Don’t over reach. Are you ready for some fresh ideations? Do your food marketing ideations look more like yesterday than tomorrow? Interested in learning how Foodservice Solutions® can edify your retail food brand while creating a platform for consumer convenient meal participation, differentiation and individualization?  Email us at: Steve@FoodserviceSolutions.us or visit us on our social media sites by clicking the following links: Facebook



Thursday, May 19, 2022

Restaurants Fresh Flavorful Meal Components with Cravability Needed

 




Grocerant niche Ready-2-Eat and Heat-N-Eat fresh prepared food will drive top-line growth and bottom-line profits in 2022 according to Steven Johnson, Grocerant Guru® at Tacoma, WA based Foodservice Solutions®. Stop by and visit us at the 2022 National Restaurant Show.

Today, the need for branded, craveable fresh food is preferred 8.6 to 1 over cooking a meal from scratch.  The simple fact is consumers today have experienced choice overload when forced to cook from scratch, walk around a grocery store for an hour, figure out how to cook, and do dishes, that is not their first choice according Foodservice Solutions® most recent grocerant scorecards.

There is a new incremental opportunity for non-traditional fresh food retailers that want sell grocerant niche Ready-2-Eat and Heat-N-Eat sell meals and meal components to go. Mix & match branded meals and meal components bundled with a ‘Eat-In’ experience is one area that all restaurants should explore. That at that intersection that the opportunity is the greatest and there is now a battle for share of stomach.

Who should be extending their reach with grocerant niche fresh food? That list should include Restaurants, Furniture Stores, Drug Stores, Grocery Stores, Convenience Stores, Clothing Stores, and Dollar Stores to name but a few. 

 


Here are 7 reasons Eating-Out while Eating-In will continue to gain momentum around the world in 2022:

 

    1. Recent Grocerant ScoreCards found 81.1% of consumers don’t know what’s for dinner at Noon, and 61.1 don’t know what’ s for dinner at 4PM %.
    2. Roughly 63.7% of consumers purchase prepared food items from a retail location at least three times a month.
    3. 79.6% all dinners have at least 1 grocerant niche Ready-2-Eat and Heat-N-Eat meal component and 66.6% have two meal components.
    4. When asked if they wanted to cook dinner from scratch or assemble dinner from fresh meal components 91.3 % of Gen Z chose assemble from Fresh Prepared Meal Components and Millennials 83.4% chose meal components.
    5. Seventy-three percent of retail prepared food purchases are taken to go
    6. Prepared food purchases are frequently a planned purchase among 61.2% of shoppers, while 40.9% of shoppers said they buy prepared foods on impulse. Dinner has the highest amount of prepared food buys with 81.7% of respondents making purchases for that meal, while lunch comes in at 76.9% and breakfast at 61.4%.
    7. 57.8% of consumers would like to add Alcohol to a dinner order

 Are you waiting, watching, or weathering as others move forward reaching your customers with new products, packaged with the ‘halo’ of better for you, on a new avenue of distribution? Do your stores look more like yesterday than tomorrow? If they are not, your brand is dying.

Foodservice Solutions® specializes in outsourced business development. We can help you identify, quantify, and qualify additional food retail segment opportunities, a new menu product segment, or product / menu integration strategy.  Foodservice Solutions® of Tacoma WA is the global leader in the Grocerant niche visit us on our social media sites: Facebook,  LinkedIn, or Twitter