Morning Brew - ☕ Dropping like fries

Can packaging solve the soggy french-fry dilemma?
March 24, 2023

Retail Brew

Flowspace

Hello, and happy Friday. We know reading the news can seem like an exercise in managing anxiety lately, with near-constant layoff announcements and possible TikTok bans. So here’s something lighter: After 70 years, KFC is adding chicken nuggets to its menu, 100% chicken and 100% hand-breaded. Hopefully, at least for now, it’s some fairly good news you can (literally) chew on.

In today’s edition:

—Andrew Adam Newman, Jasmine Sheena

DELIVERY

The fry’s the limit

A split screen photograph. On the left, a young man holds a crispy fry in one hand and a soggy fry in the other. On the right, Novlex food-delivery boxes with vent holes, which claim to help keep fries crispy. SAVRPak/Novolex

“It breaks our heart when we don’t see delivery done right—like soggy fries,” declared a Domino’s commercial released in February. The spot said Domino’s wouldn’t be introducing fries to its delivery menu, instead introducing Loaded Tots with pizza toppings, which it claimed are still crispy when delivered.

The commercial highlighted a problem all too familiar to restaurants: The beloved french fry can go limp in delivery orders.

But companies are attacking the soggy-fry dilemma, both by developing crispier fries and packaging solutions that keep them that way. And in a world obsessed with french fries, when someone comes up with a solution that really takes hold, glory—and riches—could await.

Playing ketchup: For all the challenges involved, french-fry delivery has been booming:

  • In 2022, french fries were part of 14.8% of deliveries by US restaurants, up from 6.8% in the year that ended in December 2019, according to Circana/Crest data provided by Lamb Weston.

Lamb Weston, the Idaho-based potato processor that supplies french fries to national and regional chains (but declined to name them), thinks a french fry line it developed has something to do with that bump.

In 2018, the brand introduced Crispy on Delivery, a fries line with a batter containing corn, potato, and other starches that enhance crispiness.

“We focused a tremendous amount of our R&D and market research around coming up with a better product that would hold up for at least 30 minutes in any kind of package, except one that’s completely sealed,” Kim Cupelli, vice president of marketing and innovation at Lamb Weston, told us.

The problem with a sealed box, Cupelli said, is that it can trap the steam and condensation inside.

“That is no good for a fry,” Cupelli said. “That is putting a fry into a sauna—and that means soggy fries.”

Keep reading here.—AAN

        

TOGETHER WITH FLOWSPACE

Feelin’ the supply chain pain?

Flowspace

Welp, you’re certainly not alone: The Brew surveyed our community of retail pros to better understand their current challenges, and a whopping 45% cited the supply chain as a topic that’s top of mind.

When asked about the biggest challenges the supply chain poses, 50% said inventory management, 44% said forecasting, and 27% noted excess inventory.

The folks at Flowspace, a platform powering fast, efficient e-commerce fulfillment for omnichannel brands, understand that meeting (or beating!) customer expectations is a competitive advantage nowadays.

That’s why their timely playbook offers the 411 on how merchants can overcome supply chain woes with insights and fulfillment capabilities that enable an excellent customer experience.

Grab your copy.

MARKETING

Lush for life

image from a Lush event at SXSW 2023 Lush via YouTube

“Cosmetics brand Lush Cosmetics announced earlier this month that it would slash its ad spending with Big Tech companies, citing concerns around their ‘ethical credentials.’ During the brand’s SXSW activation, Lush Chief Digital Officer Jack Constantine explained why the company is cutting its spending with Big Tech companies, including Google, by a third,” writes Marketing Brew’s Jasmine Sheena:

The reduction in Google Ads spending is part of the company’s larger goal to cut its Big Tech spending, he said, due to concerns over how these platforms have become increasingly focused on advertising over the years.
A number of major businesses have, at least temporarily, pulled ad spend from major platforms in recent years. Several companies paused advertising on Facebook and Instagram in July 2020 as part of the “Stop Hate for Profit” campaign led by a coalition of civil rights organizations including the Anti-Defamation League; many have since returned (some, including Patagonia, have not).

Read the whole story here on Marketing Brew.

        

TOGETHER WITH BOLT

Bolt

We’ve got good news and great news. Retailers, let’s start with the good news. Even with all the wild vibes out there, shoppers still want to buy your stuff! The great news? Bolt knows exactly what they want: a shopping experience that works for them. Get the full scoop in our latest video.

SWAPPING SKUS

Today’s top retail reads.

Changing the game: The Federal Trade Commission is working on new rules that will force companies known for their almost-impossible-to-cancel subscriptions to change their processes. (Vox)

A retail conundrum: E-commerce growth slowed in 2022 leading some brands into charging customers for returns, which helps them recover costs. But eliminating free returns also pushes away repeat customers. So what’s the solution? (Business of Fashion)

Command and control: While Costco controls the lion’s share of the warehouse club industry, rival Sam’s Club is investing in robotics and automation to get ahead of the competition. (CNBC)

Customers this: “Thanks! It warmed my heart that the creator reached out to me on video directly. No other company does that.”—real customer quote. Use Maverick: Record once and send AI-generated, personalized videos at scale.*

*This is sponsored advertising content.

REPORT: THE RISE OF RETAIL MEDIA NETWORKS

Together with Insider Intelligence

Together with Insider Intelligence

Our analysts predict retail media will be the next big wave of digital advertising, following in the footsteps of search and social. Download the report on one of this year’s biggest topics.

Download your full report now.

WHAT ELSE IS BREWING

  • General Mills has raised its 2023 projections again—after surpassing Wall Street estimates—mainly due to price hikes and strong consumer demand.
  • The RealReal will terminate its beauty operations.
  • Retail sales in the UK are seeing a boost thanks to secondhand shoppers.
  • Snap Inc. is introducing its first AR shopping product line for retailers’ websites.

FRIEND OR FAUX?

Three of the stories below are real...and one is most definitely not. Can you spot the fake?

  1. Stanford has introduced a new course called “Laysology” that studies each Lays flavor and its link to eating patterns.
  2. DiGiorno has created an all-onion “Cry Pie” to help basketball fans “mask” their heartbreak during the NCAA Tournament.
  3. Starbucks is letting customers order drinks based on their zodiac sign.
  4. Snoop Dogg is introducing his own coffee brand, inspired by his travels to Indonesia, and is calling it INDOxyz.

Keep reading for the answer.

ICYMI

Catch up on the Retail Brew stories you may have missed.

FRIEND OR FAUX? ANSWER

We know learning is supposed to be fun, but a college course called “Laysology?” C’mon!

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Written by Andrew Adam Newman and Jasmine Sheena

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