Have you noticed a separation of the men from the boys in foodservice of late? Operators resting on their laurels are struggling at best, and sinking at worst. Consider Logan’s Roadhouse, Fox & Hound, and most recently, Cosi and Garden Fresh Restaurant Corp with its Soup Plantation and Sweet Tomatoes brands—all filing for bankruptcy.
Chipotle stands out to me as one that had better get with it before it starts circling the drain. I’ve given my opinion on this chain before. It’s not too big to fail. I previously pondered several of its challenges, one being lack of menu innovation. I see an announcement today that it will roll out chorizo in all its stores. Good. It’s Chipotle’s annual add-something-to-the-menu month.
But I’m not here to talk about Chipotle. Rather, one chain that is actively innovating and winning is Chick-fil-A. I recently talked to its vice president of menu strategy and development, David Farmer, for a magazine article. His thinking, philosophy and vision are quite inspiring. He’s in a position to implement menu strategies along trend lines—the same trends I read in daily headlines. Those are adding additional healthful things to the menu, as well as making what they already have more healthful; developing breakfast items that aren’t sugar or carb laden; and adding grain bowls.
I asked Farmer what specific area on fast-food menus he sees the greatest future potential to make healthy. “In most fast food, the side category is all about fries. We are doing more work on side items,” he said. The chain already led the rest of fast food with a fruit cup side a decade ago. For breakfast, it’s had yogurt parfait for some time, but over a year ago, he switched out the regular yogurt in favor of Greek yogurt in order to take some of the sugar out. Bonus, the flavor profile is better. In January, he added a Superfood Side. It’s a pretty remarkable feat when you consider how large the chain is (over 2,000 units) and that the dish is made up of a chopped Broccolini® and kale blend with maple vinaigrette dressing and topped with dried sour cherries and a roasted nut blend. Is there even that much Broccolini available on the planet?
Not until recently. Chick-fil-A is having as much of an impact on the supply world as it is on consumer menu choices. “For us to get Broccolini or long-stem broccoli, we’ve had to work with suppliers to acquire fields and start growing at a scale large enough to supply a large chain like ours. You’ll see more of that in the future,” he said.
An independent fine-dining restaurant can choose to purchase antibiotic-free chicken, and it’s not even a blip on the chicken-supply radar. But when a fast-food chicken chain with more than 2,000 units says it wants antibiotic-free chicken, the Tyson’s, Perdue’s and Pilgrim’s Pride’s of the world have to make some serious changes. And that’s what’s happening.
In order to give the big chicken suppliers time to completely change their infrastructure, which they have to do to keep Chick-fil-A’s business, the chain has to be a patient chicken partner. There aren’t enough antibiotic-free chickens out there to fill the need. Farmer estimates that the chicken chain can’t make a complete switch to antibiotic–free chicken until 2019. The suppliers’ eco-systems, including the hatchery and the houses where the chickens grow must be transformed. “They have to convert their whole infrastructure over to maintain the health of the birds without the use of antibiotics,” Farmer said.
I wonder what the chicken suppliers mutter under their breath. No antibiotics ever? “They want to do it,” Farmer said. “We’re in that transition with them now.” The suppliers know that consumers want to see the change, so this has not caught them off guard.
There are and will be economic ramifications. Chicken will be more expensive. “We’ve chosen to pay more for our No. 1 ingredient,” Farmer said. The costs will have to be passed along at some point. But antibiotic-free chicken is a health issue that can’t be ignored. So it’s in everyone’s best interest.
Tell me what you think.
Jody
