Popeyes sparked the so-called chicken wars between restaurants this summer when it launched a crispy sandwich– the first time the 47-year-old chain had rolled out a chicken sandwich nationally. The sandwich features filets from small-breasted birds, which tend to be favored by retailers and are in tighter supply than large-size birds. But supplies are low and producers have pre-existing commitments with competitors.
It turns out the chicken-sandwich sales far exceeded the Popeyes’ expectations, reports The Wall Street Journal (Oct. 28, 2019). A viral social-media campaign fueled by snarky exchanges between Popeyes and competitors led to lines out the door at many of its 2,400 U.S. locations. Customers who couldn’t get a sandwich grew angry and desperate. Many owners initially hoped to sell more than 60 sandwiches a day, but some went through 1,000 instead. Popeyes announced at the end of August that it had run out of the sandwich. The company went through a supply intended for 3 months in 14 days!
So Popeyes has spent much of the past 2 months securing suppliers that could meet its specifications for quantity and small-breast size of the item’s poultry. The lengthy amount of time Popeyes is taking in bringing the sandwich back highlights the supply-chain high-wire acts that can go on behind the scenes as restaurants try to move quickly to meet consumer tastes, and how forecasting and reality can diverge wildly even after 2 years of testing a new product. Competitors, hoping to satisfy the craving, have stepped in, with McDonald’s testing a new spicy chicken sandwich last month. Getting ready for its relaunch next month, Popeyes franchises have been hiring staff.
Supply crunches have hit other chains testing new menu items. Chipotle warned last week that it would likely run out of its new carne asada steak offering as early as next month after demand exceeded expectations.
Classroom discussion questions:
- What supply chain mistakes did Popeyes make?
- What forecasting techniques (see Ch. 4) could Popeyes have used for this new product?
Barry, I have used this article for a class discussion. Students loved it. Thanks.
Thanks Soomin. With the recent stabbing at a Maryland Popeyes over a sandwich dispute, it indeed makes for a class discussion.