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How Franchises are Beating Supply Chain Issues

Aug 9, 2022

Tons of multi-colored boxes stacked to ceiling

One of the biggest issue restaurant franchises continue to grapple with post-pandemic is disruption to their supply chain. Savvy franchise brands have created strong copacker and other vendor relationships to ensure their franchisees will have little or no disruption due to supply chain issues. At Fransmart, we help advise and secure good vendor relationships for our franchisors. Here’s how a few of our brands are tackling the supply chain issue head on.

nomoo

nomoo is the vegan, good-for-you fast-food joint that is winning the plant-based burger wars. The brand, which has been dubbed “the next (plant-based) Five Guys, recently secured global leader, Nestlé Professional as its partner to produce its plant-based menu items. The relationship ensures that nomoo will easily be able to supply its franchisees as it grows throughout the country.

Taffer’s Tavern

In addition to disruptions to the food supply chain many franchisees run into problems when outfitting a new location today. Taffer’s Tavern helps mitigate this for its franchisees with relationships in place for its automated cooking system and sous vide cooking technology. Additionally, the brand has a national real estate partnership with Colliers and Northboro Builders to strengthen the real estate selection, design, build and project management process for all future Taffer’s Tavern locations.

Brooklyn Dumpling Shop

The tech-forward, fast-growing Brooklyn Dumpling Shop has many strong vendor partnerships in place ensuring its nationwide growth is supported from New York to Los Angeles, and all points in between. It works with worldwide giants Samsung and Panasonic for some of its equipment, and software and Sysco for its national broadline distributor. In addition, there are partners in place for its unique Automats, POS, digital menu boards and a copacker relationship with Gluten Libre Foods.

Duff’s CakeMix

With a CEO who has a strong operational background and a goal to make everything as easy for franchisees as possible, Duff’s CakeMix has an extensive network of vendors for franchisees to leverage. Duff Goldman’s proprietary cake recipes are made at a national bakery with a CIA-trained baker and then distributed to franchisees through Sysco. Duff’s CakeMix has partnerships in place for architecture, build-out, real estate and equipment. By having large national and Canadian vendors, franchisees enjoy quicker build times than average in the current market.

Supply Chain Issue Solutions

With strong vendor partnerships in place, supply chain issues are greatly mitigated. If an unexpected supply chain issue occurs, there are smart strategies restaurant owners can take to reduce their impact. There are also steps owners can take to make other areas of the restaurant more profitable to cover cost increases due to supply chain shortages.

Keep in Touch

One thing brands have learned is that regardless of partnerships, keeping in touch and communicating often with supply chain partners is key. Good two-way communication can let a restaurant owner know in advance if there is any product that has a supply chain issue in enough time to adjust to mitigate the impact.

Pick a Tech Forward Brand

Brands like Brooklyn Dumpling Shop and Rise Southern Biscuits & Righteous Chicken are thriving because they are invested in technology that simplifies operations, reduces labor and ultimately reduces cost. The money saved in these areas helps offset any spike in price for an item due to supply chain issues.

Push the Right Menu Items

If there is a certain ingredient with a supply chain issue, make sure staff is trained to highlight items where there are no issues.

Promote Profitable Distribution Methods

With the increase in off-premise, delivery has become a favorite for consumers. However, if you’re working with a third-party delivery company, it’s the least profitable delivery method. Work on promotions to encourage pick-up versus deliver. Domino’s created an entire national campaign that paid customers $3 to be their own delivery driver.

When prospective franchisees are evaluating brands, one of the key things to look at, especially in today’s climate, is the strength of the franchisors vendor relationships. To help find an emerging brand with a strong supply chain in place, contact Fransmart today.

Your Franchise Journey Starts Here

Whether you’re just starting out or already know the right brand for you – you’ve come to the right place. Fransmart helps franchisees use the power of compounded returns to own and operate multiple franchise locations throughout your desired market to grow franchise wealth.