This story is part of an online preview of "The NRN 50: Game Changers.” In this special report, NRN highlights some of the people, ideas, technologies, concepts and trends pushing the restaurant industry in new directions. The full report is available exclusively in the January 23 issue. Subscribe to Nation’s Restaurant News.
Supply chain management has taken on heightened importance in recent years, driven by volatility in commodities prices and ongoing pressure for fast-paced menu innovation. As a result, skilled purchasing executives have become a vital part of the research and development conversation, helping to ensure that culinary strategy and operational realities are in sync. David Parsley, who oversees purchasing for more than 1,500 Chili’s Grill & Bar and Maggiano’s Little Italy restaurants in his role as senior vice president of supply chain management for Brinker International Inc., talked with Nation’s Restaurant News about how companies can enable culinary innovation amid challenging commodities inflation.
Commodity inflation is its own game changer. How do purchasing executives stay ahead of it?
Supply chain management is how we manage costs, but without compromising quality or food safety or the guest experience. What Brinker and the National Restaurant Association’s study group have done is recognize that supply chain management has a material role to play in the well-being of a company, whereas 15 years ago, the purchasing group was secondary. We’ve strengthened our team by investing in expertise, technology and systems, and have elevated our role and function across the areas we manage.
To gain supply chain visibility, you need to … map the processes and connections from the commodity stage to what gets to the guest. Strive for supplier rationalization and distributor rationalization. That doesn’t mean fewer, but it means the right amount [of vendors] in the right geography with the right capabilities. We also jumped all over freight management and reviewing our specifications.
How does the supply chain accommodate aggressive traffic drivers like Chili’s “$20 Dinner for 2”?
Internally, it’s all about building a cross-functional approach to menu R&D. We call it a “triad approach,” which combines the culinary team, the quality assurance team, and supply chain management members in lead positions looking at suppliers and products. It’s all supported by other members, whether they’re in freight or logistics or ops and marketing. That leads to an external effort involving our suppliers and getting them active in our development. They have to … understand our business and bring us solutions instead of sales pitches.
If a culinary person says, “I want this product in eight weeks,” but the source is China, and we need a ton of it, it takes an open-table process where people can say, “Here’s the timeline, and here’s the premium we’d have to pay, and let’s execute against that plan.”
Has the R&D process sped up during the past few challenging years for casual dining? How have you had to adapt?
There’s a true sense of urgency – get your suppliers in early so you can anticipate these things. What we’re trying to do is build a pipeline that will give us a little more time. It’s very fact based, and we make decisions quickly so we can stay very fluid.
Contact Mark Brandau at mark.brandau@penton.com.
Follow him on Twitter: @Mark_from_NRN.
