By commanding a higher price and reducing waste, this world-famous brand's array of products strengthen the bottom line.
Today’s operators are faced with a demanding set of expectations: Do more with less—less spending, less staff, less waste, less supplies—all while increasing profits and marketability. This new dynamic calls for new solutions, and Hershey’s new 5-pound resealable chip bag perfectly fits into the operator’s pantry as a middle ground.
“There’s a huge spike in independent operators and a demand for the in-between size. The next available range after a 10- or 12-ounce bag, and this is across most of commercial foodservice, was a 25-pound case. It’s a big jump,” says Al Adams, Hershey Foodservice director national chains and marketing.
No stranger to bringing innovative ideas to the market, Hershey’s newest product suite of chocolate chips—a 5-pound, resealable bag in a variety of options: Milk Chocolate, Semi-Sweet, REESE’S, and Premier White Crème—launched in 2022 as an answer to operator feedback.
The genesis of the 5-pound bag fills a niche to reduce waste and caters to both consumer behaviors and restaurant bottom lines. “We saw there’s an opportunity for us to better meet the operator demand for the right-sized product with a price point that better fits their ongoing weekly or monthly budget in a format that’s resealable, so you don’t feel like you have to use it all right away. And it fits in their pantry,” says Adams.
Reducing waste in terms of bag size, tamper-resistance, shelf life, and servings per bag—something Hershey Foodservice likes to call “portable, storable, and resealable”—while capitalizing on HERSHEY'S built-in legacy and powerhouse brand recognition allows brands to charge more and improve dessert and beverage category margins.
Datassential’s July 2022 Scores report states that when faced with a menu board of non-HERSHEY'S-branded and HERSHEY'S-branded desserts, purchasing intent increases significantly—by 79 percent—when adding HERSHEY'S to cookies.
“When the Hershey brand is added to an unbranded item—say it’s a chocolate chip cookie—there’s a lift factor for that cookie. We find that on average, a menu item can go up by $1.50 or more. So, whether it’s a chocolate chip cookie or toppings that go on an ice cream sundae, we see a strong correlation,” Adams says.
Comfort is king and comes in many ways, least among them chocolate. Throw a pandemic in there, and food choice most certainly becomes a psychology. “That’s exactly how we think about it for foodservice operators. We may not be the cheapest ingredient. And that’s okay, because we don’t want to be. The brand has meaning and our products are high quality. Consumers take comfort in something they have trust in, because of their experiences growing up or having used it throughout their lives,” says Adams
Indeed, according to Dataessential Flavor June 2022, the general population loves HERSHEY'S, ranking adoration from 83–89 percent across seven operators sampled, including Dunkin, Dairy Queen, and McDonald’s.
“When we talk to operators, we focus on how might we leverage our brands to help you sell more for a higher price more frequently? Can we help elevate the whole bakery or dessert side of the menu? And we’ve got a great track record there. It really is all about the brand,” says Adams.
HERSHEY’S has a buy-one-get-one-free rebate now on the 5-pound chip bags. Get yours at the HERSHEY’S website.