Get 40% Off
⚠ Earnings Alert! Which stocks are poised to surge?
See the stocks on our ProPicks radar. These strategies gained 19.7% year-to-date.
Unlock full list

How Popeyes Ran Out of Chicken for Its Famous Sandwiches

Published 30/08/2019, 18:02
Updated 30/08/2019, 21:42
© Reuters.  How Popeyes Ran Out of Chicken for Its Famous Sandwiches

(Bloomberg) -- A social media frenzy means Popeyes quickly ran out of its new, instantly iconic chicken sandwiches. Meanwhile, the U.S. poultry market is bursting with oversupply.

U.S. chicken companies are forecast to process a record 43.3 billion pounds of the meat in 2019, government data show. So why isn’t that enough to meet demand for the new sandwich? It comes down to needing a specific product at a specific time.

When restaurant chains contract with suppliers, they often have tight product specifications and buy a set volume, said Tom Elam, a consultant for the poultry industry. Specifications can include seasonings, coatings, and the size and thickness of the cut with very little variation, he said. In other words, there’s a glut of meat, but not all of it’s ready for Twitter sandwich fame.

How Popeye’s Chicken Sandwich Harnessed Social Media (Podcast)

“They can’t just turn this stuff on and off,” Elam said. Suppliers often can’t “make more of that particular product spec in a short amount of time,” he said.

So Popeyes has to replenish its stockpile of custom-made chicken for its sandwich, and the restaurant chain is currently working with suppliers to build up its inventory, spokeswoman Brooke Scher Mogan said by email. There’s currently no set date for the relaunch. Popeyes on Tuesday announced on its Twitter page that the sandwich had sold out less than a month after it was first offered nationally.

It’s striking that the chicken sandwich is facing shortages at a time when many restaurants are going all in on plant-based proteins.

Popeyes’ sister companies, Burger King and Tim Hortons, all owned by Restaurant Brands International Inc., recently started serving wildly popular plant-based offerings, but neither appear to be facing tight supplies.

“It’s a hard task to demand plan for products, and it becomes exponentially harder when you’re talking about a new menu item,” said David Maloni, executive vice president of analytics at commodity researcher ArrowStream. “It’s not uncommon to be off.”

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.