Reduced Production Due to Local Drought in the US... Impact of Global Logistics Crisis
Johnny Rockets 'Onion Rings' and Subway 'Lays' Potato Chips Sales Halted
A sign stating "Onion ring sales are suspended due to difficulties in raw material supply" has been posted at a Johnny Rockets location recently. Photo by Asia Economy DB
[Asia Economy Reporter Moon Hyewon] Due to issues in sourcing ingredients such as onions and potatoes caused by climate change and the global logistics crisis, the franchise industry is experiencing menu sales suspension incidents. As the suspension of certain menu items continues for up to several months, consumer dissatisfaction is mounting.
According to the franchise industry on the 28th, Johnny Rockets, operated by Shinsegae Food, has currently suspended sales of the ‘Onion Rings’ menu due to difficulties in sourcing raw materials. The onions used for the onion rings are a specific variety used by the US headquarters, but supply has been disrupted due to drought conditions in the US.
Unlike other brands that grate onions and fry them in ring shapes, Johnny Rockets sells onion rings made from whole sliced onions, so they cannot substitute with domestic onions. However, onions used in some of Johnny Rockets’ hamburger menus are being replaced with domestic onions.
Subway has also suspended sales of its side menu item, ‘Potato Chips,’ due to supply difficulties. Subway sells potato chip products from the US brand ‘Lay’s,’ and according to Subway, the supply instability is due to reduced potato production in the US and the global logistics crisis.
Lay’s potato chips, which were first suspended in May this year, resumed sales in June but were suspended again starting last month. Subway expects full normalization of sales next month. Some franchise stores are currently substituting with domestic products such as Swing Chips and Poca Chips.
Outback Steakhouse recently received consumer inquiries about changes in the taste of Oz Cheese due to temporarily switching suppliers because of potato supply shortages. Outback stated that they plan to normalize the supplier as soon as the supply shortage issue is resolved.
An industry official explained, "Due to the nature of the franchise business, where the unique taste and appearance of each company’s menu must be consistently maintained, it is difficult to find alternative ingredient suppliers when experiencing supply shortages caused by climate change or logistics crises."
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