Pizza Today - October 2020 - 32

Favor flexibility
Sara Matheu, spokesperson for US
Foods, one of the nation's largest foodservice distributors, urges operators "to stay
closely connected with their distributor
to help mitigate any concerns" and to be
flexible above all else.
"Flexible with using frozen or fresh
products or alternative brands and
consider rotating menu and specials to
accommodate," Matheu says.
Rigidity or strict adherence to the
status quo, after all, can be damaging.
At Farrelli's Pizza, an eight-unit chain
in western Washington, director of
kitchen systems Mike Rutledge sourced
alternative pepperoni products after a
supplier shuttered its factory for two
weeks to address a coronavirus outbreak.
And throughout the summer, Rutledge
found himself in weekly communication
with his broadline distributor to find
substitutes for two-to-five out-of-stock
items, ranging from takeout bags to salad
dressings. He considers flexibility and a
solutions-oriented mindset essential to
navigating supply chain disruptions.
"You have to be flexible to get product
in your doors and serve guests," Rutledge
says.
Investigate alternative providers
Steven Rodgers, vice president of
business development and global account
management at HAVI Supply Chain,
a company that helps restaurant brands
optimize and manage their supply chains,
encourages operators to actively explore
opportunities to offset risk and cost pressures by diversifying their supply chain.
He suggests starting with local providers
first before moving onto regional and
national players, especially as the pandemic continues affecting different parts
of the country in distinct ways.
To that point, Rutledge encountered
a short supply of chicken wings - Farrelli's second most purchased item behind
mozzarella - after his long-time supplier
shifted much of its production to the
consumer market following a precipitous
drop in orders from foodservice clients.
In response, Rutledge interviewed five
different suppliers and partnered with a
new vendor who guaranteed a 12-month
supply.

"And we're saving five percent in the
process, too," he says.
To accommodate immediate restaurant
supply needs, Farrelli's set up Instacart
accounts with three major foodservice
supply stores in its area. For about an $8
delivery fee, store managers can receive
goods like takeout materials, pizza toppings or condiments within hours.
"Most of these stores have comparable
products so we don't have to 86 items
from our menu," Rutledge says.
Simplify operations
Simplified operations, something
many restaurants employed throughout
the height of the pandemic with smaller
menus utilizing fewer, more versatile
ingredients, stand another antidote to
supply chain concerns. Rodgers says simplified operations can "reduce operational
complexity and minimize the impact of
short supply." He suggests restaurants
focus on serving their most frequently
purchased and profitable items, identify
alternate sources of key ingredients and
remove specialized items that are complex
to serve or require difficult-to-procure
ingredients.
Based on a simplified menu, Rodgers
says operators can then ask their distributor "to monitor demand of key items
and work ... to centralize the ordering
process."
Strategic ordering
Having already endured a significant
jump in cheese prices - from $83 for a
30-pound case in April to $120 per case
in August - and with rumblings that the
per-case cost could leap as high as $135,
Patrone increased his cheese orders 25
percent this fall and stored the excess
product in an extra refrigerator. He
considers such forward-thinking purchasing necessary to mitigate risk and cost
pressures.
"I look at items we use the most like
flour, tomatoes, cheese, beef and chicken
because that's where we can really get
hurt," says Patrone, noting that futures
prices on the commodities market and
regular contact with providers help him
anticipate potential price increases.
Rutledge, who has "bulked up" some
of Farrelli's purchase orders and asked

broadline distributors to store excess
product in their warehouses, remains
in regular contact with suppliers and
distributors to monitor the costs of pork,
beef, chicken and, especially, cheese.
"When cheese moves, percentages
move all over our P&Ls," he says. "We
continue to work with our partners to
stay above the market."
HAVI's Rodgers notes that an array of
factors - local guidelines on restaurant
openings, capacity, traffic and customer
preferences among them - can also
inform operators' planning and purchasing. n
DANIEL P. SMITH Chicago-based
writer has covered business issues and best
practices for a variety of trade publications,
newspapers, and magazines.

SHOULD YOU
COMMUNICATE SUPPLY
CHAIN ISSUES TO
CUSTOMERS?
As the COVID-19 pandemic
disrupted Patronies Pizza's supply chain
and its ability to secure certain items,
owner John Patrone did not conceal
that trouble from his customers. Rather,
Patrone embraced transparency. The
restaurant's website carried this message:
"Because of issues in the food supply
chain as a result of Covid-19 shutdowns,
prices for various items may be higher
than normal."
"By and large, our customers get it
because they see it themselves at the
grocery store," he says. "If we keep the
quality and quantity the same, then
people don't mind paying for that and
we'll charge what we need to charge."
HAVI Supply Chain's Steven Rodgers
encourages restaurants to "empathize
and communicate" with guests.
"Help your customers understand
the disruption," he says. "Find a way
to market that you are still 'serving the
classics.' Help them understand why
you've simplified [while noting] that
other options will be back soon."

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Pizza Today - October 2020

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