SugarCreek: Brandworthy Food Solutions

Could the end of the ubiquitous dollar menu be nigh? Consumers, treated to an embarrassment of riches when it comes to dining out, aren't just focused on their wallets anymore. The artisanal food movement, anti-GMO sentiment and other food sourcing trends are compelling those in procurement to stay on top of their game and one step ahead of the competition. It's no longer about just adding a slice of cheese to a burger, it's about sourcing an ethically made cheddar that's not only affordable, but a favorite in focus groups as well. Once hyper-focused on cost at the expense of nearly everything else, the fast food supply chain is evolving — if only to keep pace with the customers it serves. 

We know that "sustainable" doesn't come cheap. As we've recently discussed, it can take a long time and a tremendous financial investment just to develop a sustainable supply line — especially for niche ingredients. But Millennial consumers are clearly engaged with the sustainable food movement. Fast casual success stories like Chipotle — which takes great pains to source sustainable, non-antibiotic and non-GMO ingredients — prove it.

"Red Lobster, Olive Garden, TGIFridays, IHOP, Applebee’s and Chili’s combined are worth less than Chipotle," noted EcoWatch. "We won’t likely see any of the major fast food brands slip away any time soon, but they will have to reinvent their offerings to appeal to a new generation of diners."

Food procurement managers know: When you're leading a fast food franchise in the charge toward sustainability, your ability to source sustainable ingredients will almost always be outpaced by consumer demand. Tastes change quickly, but production capacity takes time to bring online.

The problem is, you can't afford to ignore changing consumer tastes. And you can't afford not to understand how they were derived.

Wendy's story serves as an illustration. The venerable Columbus-based fast food chain needed a way to appeal to Millennial consumers who had been deserting them in favor of fast-and-fresh concepts like Chipotle. So Wendy's test kitchen developed a new series of seasonal salad products that incorporated fresh fruits in unexpected flavor combos.

The problem? Blackberries.

Climbing to the top of the QSR food chain means optimizing the supply chain that feeds its growth, unique demands and all. As customers demand more — quality, expediency, price and ethical operation — from the foods they eat, procurement teams are compelled to juggle more than ever before. Getting the best results requires a broad-spectrum approach to sourcing and smart decisions at every step of the way.

There are five important considerations that should be on every procurement professional's to-do list.

If the pervasiveness of dollar menu mentality is any indication, price points are crucial to competitiveness in the fast food industry. So why is big data underutilized or outright ignored in the typical fast food supply chain? Still caught in a lingering procurement cycle plagued by shortages, safety scandals and other — admittedly important — distractions, the fast food industry is understandably hesitant to tackle yet another potential issue. As big data sweeps through industries like healthcare, leaving cost saving efficiency in its wake, it's becoming harder to ignore the benefits of data scrutiny.  So what can big data really do for fast food, an industry typically too focused on the road ahead to pay attention to the road behind? 

Even as the economy has navigated twists, turns and economic uncertainty, Americans' appetite for eating out doesn't seem to have diminished. In fact, muses Forbes' Darren Tristano, traditional QSR restaurants have found new rivals in a segment dubbed “QSR-plus,” which takes the QSR concept and simplifies its menus while elevating ingredient quality. What does this shift mean to the fast food supply chain? It means that partners across the chain, from growers and manufacturers to distributors, need to be prepared to recognize and master unique challenges, particularly in sourcing and safe transport-storage routes.

The big names in the food industry like McDonalds or Chipotle or Kraft get a lot of press when they try something new—whether it ends in success or failure— but, sometimes, the greatest innovations come from the smallest places. With fewer layers of bureaucracy that ideas need to vault past and a looser corporate structure that encourages creative thinking, small enterprises are often able to take unusual ideas to market far more quickly than larger corporations.

Just as a lean start-up can outmaneuver a tech giant, small food businesses can come up with startling innovations. In fact, some of the most groundbreaking new ideas in food innovation are originating in places you've never heard of.

Is there such a thing as the stereotypical, American quick-service (fast food) customer? There might have been in days gone by, but industry experts say that the fast food crowd is become decidedly diverse.