When the country was on quarantine due to COVID-19, guess what consumer's #1 protein of choice was? No surprise: chicken. We get it. What's more comforting than a premium-cut chicken tender, moist and juicy, double-breaded in country breading and then fried to perfection? Consumer demand for chicken went up due to the pandemic and also due to large QSRs promoting the chicken sandwich wars. Meanwhile, supply went DOWN due to bottlenecked production and processing of poultry due to labor shortages during the shutdown (a struggle we know many of you have faced in your operations, as well).
With demand up and supply down, we're now seeing those shortages in the market. It is widespread with both large and small operations feeling the impact. Below are some examples that our team has encountered personally:
Being in stock is a top priority of PFSbrands. Our typical fulfillment rate is over 99%. Even with poultry shortages in the market, our fulfillment rate is still a strong 97.8%. We are committed to your success and our purchasing team is working to mitigate these supply issues to keep you in stock. That said, you may face shortages on popular items like chicken tenders and chicken breast fillets.
What should you do if you face product shortages?
Communicate WHY to your Customers.
Customers have already encountered shortages and increased prices due to the pandemic. They've experienced it at hardware stores when buying lumber, at flower shops when buying Mother's Day bouquets, and now even in buying bottle rockets at firework stands. Consumers understand, so clearly communicate the reason of your shortage is related to the supply issues we are facing. Check out this twitter thread from Bojangles:
Bojangles' tenders are called Supremes. They gave a simple response of why the customer wasn't able to get the tenders, and then multiple customers were beyond understanding-- committing to wait patiently to enjoy the tenders again! Short, simple responses are best. We recommend:
- Due to industrywide supply chain shortages, some items may not be available at this time.
If you have a shortage, we recommend displaying signage in store to inform your customers right away. Download the signage below to print, or contact your Business Advisor or our Retail Advertising Specialists to order signage.
Leverage the Tackle Box Promotion.
Use in-store signage to shift your customers' cravings from chicken tenders and chicken breast fillets to items that have no supply issues and a good margin. The $6 Tacklebox features fish and shrimp and has been well received by customers in the past. This is our recommended alternative for the canceled Q3 promotion. If you aren't already running this promotion, contact your Business Advisor or our Retail Advertising Specialists to get started.
Equip your Front-line Employees with Sales Tactics.
Your front-line employees are your sales people. Provide them with scripts to promote other delicious menu items that have good margin and no supply issues:
- Would you like to try our creamy macaroni and cheese?
- Have you tried our dipper bowl yet? It's a meal all in one bowl: chicken dippers, mashed potatoes, corn, gravy, and shredded cheese!
- Would you like to try a sample of our chicken dippers? Our 8 piece meal is one of my favorite things on the menu!
- Would you like to add a warm chocolate chunk cookie to your meal for 89 cents? PS: if you aren't carrying our new chocolate chunk cookie, you are missing out on a great opportunity to LEVEL UP your customers' basket rings.
Audit your Inventory.
Conduct regular inventory counts to make sure you are getting the most yield out of the product you have. See what you have on hand and then work with your employees to create strategies to minimize waste. For example, would it reduce waste if staff cooked smaller batches more often, versus big batches at once? You can also provide sales tactics like we talked about above based on the inventory you have on hand that you need to work through.
It's also important to ensure that you are maintaining appropriate PAR levels. With the disruptions in the supply chain, you cannot count on wholesaler deliveries to get through the day or weekend, so optimize the space you have to ensure you have product on hand.
Our Support. Your Success.
The benefit of being a PFSbrands partner is that you have a dedicated team ready to support you. Let us know how we can help you as you navigate the market changes. Our Customer Success Team is here to help!
Customer.Success@PFSbrands.com |(855) 632-3373