Challenges & Opportunities for National Account Operators

Chef Tim Gump (Tim): We’ve all heard that labor is starting to come back, but it’s not coming back at the same rate in the restaurant world. Restaurant workers have learned new skills over the past couple years and are taking those skills to different industries. That results in fewer workers and limited skill sets in the kitchen, making it difficult to serve diners efficiently and create complex dishes. 

Chef Don Turley (Don): Labor challenges across the supply chain have created more demand than there is supply. We’re seeing an unbelievable amount of unusual demand orders. Rather than be particular about specs, operators are grabbing whatever products they can get ahold of or finding replacements. On the imports side, getting products from Asia remains a challenge.

Tim: We’re seeing menu reduction and simplification. Recipes aren’t being made from scratch; they’re made using speed-scratch and fully-prepared items. Chains that once had 500 SKUs are down to 300. This has helped them manage a shortage of skilled labor and remove SKUs and menu items that weren’t adding enough value. 

Don: There’s operational pressure for restaurants to go back to basics. They’re focusing labor and resources on center-of-plate items. Instead of being everything to everybody, they’re doing what they do best. 

That doesn’t mean there hasn’t been innovation. Culinary teams are menuing familiar items with a twist. Consumers spent the past two years watching cooking channels and learning about harissa, tikka masala, and other flavors. Now, they want to try them out. Chefs are taking familiar comfort foods and adding global spices and ingredients to make them new. 

Tim: The best thing operators can do is share what they need on a weekly basis. Planning ahead and providing forecasts well in advance is key to making it through this environment. Poor forecasting causes strain throughout the supply chain—manufacturers don’t know how much product to make, and distributors and redistributors don’t know how much product to buy.

Of course, this is easier said than done. This is a difficult time to make predictions. State and local guidelines are so fluid and demand is so unsteady that it’s hard to tell if an LTO you’re thinking about launching in six months will sell. Your partners understand that. Speak honestly and early with your partners about your upcoming menu plans and your concerns. The more communication we have with you, the more we can help you get what you need.

Don: There’s a lot of pressure on operators. The wrong move could cost them big. That’s why there’s so much panic in the market. Some operators are placing orders that are too large because they’re afraid they won’t get everything they need. To echo Tim, their best move is to talk with us about what they need. If we don’t have it, we’ll work on a replacement.

Tim: The general consensus from the manufacturers and national accounts I’ve talked to and at the conferences I’ve attended is that the industry will start to stabilize by 2023. But that doesn’t mean there’s no hope for this year. The forward-thinking operators who’ve learned to adapt are thriving. Some are even achieving record revenue. 

If you stick to doing things the way you’ve always done them, you might struggle to get to 2023. But if you plan ahead, remove silos, and work to strategically scale back your menu, you could have a great 2022.

Don: Throughout the pandemic, culinary teams have been building their recipe library. They have exciting LTOs and menu items in the pipeline ready to go when the industry recovers. We’re not out of the woods, but bold, new flavors are on the horizon.