BUFFALO N.Y. Concessionaire Delaware North Cos. said it is considering a switch from chicken tenderloins to breast strips at its stadium and arena concession stands across the country because of an expected shift in supplies and a jump in price.
Using the example of one account, Eric Fraas, the companyÕs senior buyer for national accounts, said the switch would save DNC approximately $15,000 at that venue alone. He added that 1,833 cases of chicken tenderloins had been purchased this year for that particular venue.
Fraas said the switch to chicken breast strips also would improve the quality of the product, "by allowing the chicken to remain moist and the breading crisp," in addition to offsetting price increases.
Richard Dobransky, vice president of culinary development for DNC, echoed those sentiments saying: "If we're smart and buy better we won't have to raise prices."
According to Michael Reinert, vice president of supply management services, commodity costs for the company increased 6.67 percent this year. He added that in June the price per case of chicken tenderloin was $28.61, a more than 7 percent increase over the price in 2007, which was $26.68 per case.
"Very simply, the input costs [of chicken production] have gone up quite dramatically, said Richard Lobb, spokesman for the National Chicken Council. "So far it looks to us that U.S. retail prices have increased 20 percent in the last two years, and we don't know where it will go from here."
The rising cost of corn, a key component of chicken feed, is often cited as a major reason for the rise in chicken prices.
Lobb said that restaurant companies may have to either use less costly chicken products or raise menu prices to accommodate increased costs.
"It’s hard to tell, but if input costs keep going up they’re going to have to adjust one way or another," he said. "It’s a tough situation for everyone involved in the food chain."