Popeyes, a fast-food restaurant owned by Restaurant Brands International (NYSE: QSR), has been hoarding poultry supplies ahead of the July 27 launch of a new chicken nugget product.
What happened was this: According to a Bloomberg article, the company has been stocking up on frozen chicken since January to ensure it won’t have any issues with quantity control when the product launches.
Popeyes has been trialing the nuggets in Austin and Denver, utilizing a new buttermilk-battered recipe that is identical to the chicken sandwich it debuted in 2019.
The restaurant wants to avoid the troubles it had with the chicken sandwich launch, when supplies ran out and irate customers got into confrontations because they couldn’t get the meal.
“Demand is quite high right now, and consumer spending is increasing,” said Sami Siddiqui, President of Popeyes Americas. “We’re making the necessary preparations.”
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Why Does It Matter? Popeyes’ hoarding draws attention to the fact that demand for poultry is surpassing supply, resulting in higher costs and product shortages at restaurants.
Wingstop Inc (NASDAQ: WING) introduced Thighstop last month in response to the rising shortage of chicken wings. Thighstop offers bone-in and boneless chicken thighs.
Because thighs are “far less expensive,” Wingstop Chairman and CEO Charlie Morrison said that adding chicken thighs to the menu was motivated by cost considerations.
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