Product Cost Savings

The Problem

In May 2022, a major national chain restaurant was gearing up for their spring promotion and was planning to use a stock ready-to-use (RTU) sauce from their primary distributor as the key base. The distributor has revenues over $10B and was a well-oiled machine, delivering truckloads of the sauce for years without any issues. And then, supply chain issues began.

The chain was notified that, due to supply chain/ingredient shortages, it would not have any product available for the Limited Time Offer (LTO), which was due to start in 60 days.  The chain had already printed point-of-sale displays, purchased media, and was fully committed—it was too late to change their promotional item.

The Solution

The chain reached out to Midas Foods for help on a Thursday. The Midas culinary team conferred with the chain’s Research and Development department on the proper characteristics for the sauce and overnighted 3 custom options to the culinary team for Friday morning. These were evaluated immediately, and one was selected that not only tasted better but cost significantly less than the original distributor RTU sauce. Follow-up cases were forwarded, and full documentation was generated by the Midas regulatory team, all within days.  The product was then ordered, produced, delivered into distribution, and fully trained well before the start of the promotion.

The Results

Two weeks after the promotion began, the chain had gone through over half of the entire inventory for the entire 10-week promo. They were due to run out right after a national holiday, and time was limited to produce, ship, and deliver to prevent shortages in the middle of a national promo.  The Midas team expedited materials, re-arranged production,  and re-supplied the chain with another 5 tons of product in a matter of 10 days.  This ensured that they were able to keep the promotion going without disruption.  Total product costs were 15% less expensive and the excess product was shelf-stable and was able to be saved for future use.

Ready to Start a Partnership?

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