Supply Chain Struggles Have Forced Franchises To Adapt Holiday Strategies

On Wednesday, CNN Business reported that many Thanksgiving dinner essentials are quickly going out of stock. Business writer Danielle Wiener-Bronner cited the ongoing strain to the global supply chain as the reason, paired with the insistence of consumers planning ahead to avoid going without.

For franchises, the roadblocks to this supply chain are nothing new in 2021. The latest Thanksgiving trends suggest there are immediate provisions to be made within the franchising industry for brands that rely on seasonal traffic. The demand for holiday-related products or specials are subject to a time-sensitive decline.

Consumers have been forced to adapt through all sorts of changes due to COVID-19, so a few meal substitutions at the Thanksgiving table may be the least of consumer worries. The current supply chain concerns mean that many franchises will be taking a gamble if they chose to run holiday specials that feature new products or ingredients, however. This pinch means franchises will be unable to roll out new strategies during the holidays, unless said innovation is a means to work around a limit to the supply chain.

People are often willing to spend more money over the holiday season, but the season itself can’t be postponed just because a brand is unable to put their product or service on display. Brands are now forced to find how they can get people to spend money under the lowest possible shipping demands — or risk missing out on a peak revenue season.

“If you haven't done your shopping yet, don't panic: You won't have to cancel Thanksgiving. But you may spend more than you'd like and have to make some substitutions,” said Wiener-Bronner.

Franchise brands across the country have already been making those substitutions. For example, the money that the Wingstop franchise isn’t spending on chicken wings has now transitioned to an aggressive marketing campaign for chicken thighs. It isn’t a 100% holiday-related program, of course, but it also isn’t just chicken that is facing a crunch. The latest crunch on turkey sales is a tough one to push back a couple weeks with Thanksgiving fast approaching.

“During that first week of November, whole bird frozen, fixed-weight turkeys were in stock at a rate of 64% on average across national retailers, [market research firm] IRI found. This time last year, that figure was around 86%,” Wiener-Bronner said.

Increased gathering and increased spending this year are business opportunities that many franchises cannot simply pass on. They can take more action in 2021 than what was allowed in 2020, but a pinch in supply this year could be devastating for brands that rely on that seasonal attention based on tradition.