Food & Beverage

Meat shortage hits 'fresh, never frozen' Wendy's, but other burger brands OK

Wendy's has yanked burgers from nearly 1,000 store menus after problems obtaining its trademark "fresh, never frozen" beef, but the issue doesn't seem to be so problematic for other major burger brands.

Wendy's has beef supply issues, but McDonald's, A&W, Checkers and Rally's all say they're still stocked. (Photo: iStock)

May 6, 2020 by S.A. Whitehead — Food Editor, Net World Media Group

Despite reports from San Francisco, Dallas and Detroit that 18% of Wendy's 5,500 U.S. stores were out of burgers due to COVID-19-related slaughterhouse closures crimping the national beef supply chains, other burger-centered chains are still meeting customers' beef needs.

CNN reported that approximately 1,000 of Wendy's 5,500 U.S. stores weren't selling any "hamburgers or other meat-based items," in an online menu analysis by Stephens financial firm. Stephens said the brand's reliance on fresh beef was proving an impediment. 

Heidi Schauer, Wendy's senior director of Global Communications & Customer Care, said Tuesday that although it was receiving meat deliveries on normal schedules, some menu items may be temporarily limited in some locations.

"We're working diligently to minimize the impact to our customers and restaurants, and continue to work with our supplier partners to monitor this closely," Schauer said in an email.

McDonald's, Checkers and Rally's and A&W, however, told QSRWeb that they weren't experiencing menu-level shortages, although some said prices were increasing.

A spokeswoman from McDonald's, which has more than 14,000 U.S. stores, told QSRWeb that the chain hadn't suffered any meat supply chain problems as of Tuesday afternoon but was closely monitoring the situation. 

McDonald's CEO  Chris Kempczinski appeared on CNBC last week and said the chain hadn't had a single break in its supply chain for its entire network of 40,000 worldwide restaurants. 

"That said, the U.S. situation around meat — actually the North America situation — is concerning," he told CNBC. "We are monitoring it literally hour by hour. Right now, we feel like we are in a good position, but there is concern there. … I think because we're McDonald's, we have access to all of our suppliers and we have a special relationship with them, and certainly our expectation is that they will make sure they do everything they can to guarantee our supply."
The company said this week, those remarks still hold true. 

The power of being part of a large national group of QSRs working together on supply chain issues has also helped out at A&W, according to Senior Vice President of Marketing Sarah Blasi Mueller.

"A&W is a member of Restaurant Supply Chain Solutions — the purchasing co-op that also represents all of the Yum! Brands restaurants. This gives us tremendous buying power and ensures our restaurants have a consistent food supply," she sadi. "We have experienced only a few local shortages in different food categories, and they were resolved quickly.

While lean beef prices have gone up, chicken has remained relatively stable, which is working to the chain's advantage, Mueller said.

"Hand-breaded chicken tenders, which were a big seller before COVID-19, are even more popular now that we are selling them in new Family Packs. Hand-Breaded Chicken will be featured in our next promotion," she said. ""When food supply and prices are volatile, flexibility is extremely important. We're keeping a very close watch on both and we will adjust our menu quickly if needed."

Similarly, at Checkers and Rally's, a spokesman for the brand said the chains were "not having issues regarding meat sourcing."

About S.A. Whitehead

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Pizza Marketplace and QSRweb editor Shelly Whitehead is a former newspaper and TV reporter with an affinity for telling stories about the people and innovative thinking behind great brands.