Why Now? The Bread Business in 2025
Welcome to Industry Insights with Route Consultant! This week, we sit down with Chad Johnson, Vice President of Franchise Services at Flowers Foods, to explore the current trends and challenges in the bread industry. Chad discusses the importance of regional market information for independent distributors, the value of brand equity, and the advantages of the Flowers independent distributor model.
We delve into why investing in this model is a smart and stable choice, the diverse brands under Flowers Foods, and what it takes to be successful as an independent distributor. From practical tips for managing your business to understanding market dynamics, this episode is packed with valuable information for anyone interested in the logistics and bread industry.
About Chad Johnson
Chad began his career as a bread route driver in Atlanta before climbing the ranks at Flowers Foods through roles in HR and communications. Today, he leads franchise operations and enablement, ensuring independent distributors are supported with data, training, and tools to succeed. Under his leadership, the franchise sales process has evolved to include candidate vetting, financial requirements, and business plan submissions to ensure mutual long-term success. Chad’s deep-rooted belief in entrepreneurship drives his work supporting Route Consultant and other partners in identifying strong operator-investors.
-
[00:00:00] Welcome to Industry Insights with Route Consultant, your front row seat to the fast moving world of logistics and beyond. Each week, we bring you game changing insights, real world strategies and fresh perspectives to fuel smarter investments and build stronger businesses. Join us as we sit down with expert guests to explore emerging trends and pressing topics.
Across a wide range of industries. This is industry insights. Today we have Chad Johnson, vice President of Franchise Services at Flowers Back again, and Chad, I know in a previous EC. Episode we really talked about the 30 years, uh, your previous 30 years with how you've seen kind of flowers get to where it is today.
But I wanna talk more about really the current context affecting the bread industry today and, and what you all are seeing, So how have you seen some of these trends affecting what. You know, independent distributors are doing today and how they have to think about ordering. [00:01:00] Yeah. You know, that's one of the areas that my department has to excel in mm-hmm.
Is sometimes it's, it's a. Delivering the The knowledge, yeah, or the information to the IDPs to know what's going on in the market. So one of the things that we will do is we'll take regional information to say and share that with our independent distributors to say, Hey, here's where some big market wins are going on in your area.
So in case they. Maybe, maybe they're just missing that. Mm-hmm. And they can see that information and pivot and put the right products in their markets to become more profitable. Yeah. And, and that's huge because if you're an independent distributor and an entrepreneur, maybe you figured out how to do the operations, but there's no chance that you're doing, you know.
in-depth market research on all of the brands that Flowers has. So to be able to lean on your team and the things that you guys can do, I think is a, a huge advantage for those distributors. Absolutely. [00:02:00] Absolutely. And, and I mean, some of it comes from the retailer as well, because when the product is sold into the retailers to say, Hey, here's a new product that, that Flowers has, uh, they, they're also going to do their due diligence to make sure that it's something they want.
And allocate their modular space to, because the space in their stores obviously equals to dollars at the end of the day. Yeah. And that's, that's one of those tough things is figuring out. The right allocation in the store and you know, based on what the store is asking for, but also based on applying your knowledge from flowers, but also your knowledge as an entrepreneur of, you know, the context of your neighborhood and thinking about what are the little variances in, you know, west Nashville, that that might be different than what the overall averages for the country are.
And you know, that's the nuance that makes you successful. Right? Right. You gotta have the right product for the right consumer at the right time. Yeah, absolutely. So, you know. Zooming out a little bit at a 10,000 foot view, let's, let's say I'm coming to you today as [00:03:00] a person who's wanting to, to get into the independent distributor model.
Why would you say it's a good investment? It's, you know, you think about it. Yeah. What do you think about when you think about the, the staples of a, of a grocery shopping list? Bread, milk, and eggs. Mm-hmm. Right. Yeah. I mean, I. As someone that works for flowers, I'm very, I concentrate a lot when I'm in the store.
I'm looking what's in those shopping carts every time. Definitely looking to make sure there's flowers products in there. Yeah. Uh, you know, I've caught myself on at times being at the bread shelf and doing some, some hands selling, uh, with consumers to say, Hey, have you thought about trying this? And they don't know where I work.
Yeah. I, I present myself more as a, well, if they're, if they're in Thomas. Though they might have a little bit of a guess. This is true. This is true. So, um, but yeah, I mean it's, it's just people, people are always gonna need bread. Yeah. People love bread [00:04:00] and. I, you know, it's something that's not gonna go away.
Yeah. Yeah. And, and I think when you're trying to decide where to invest your money and where to invest your time and energy, the more you know, stable recession-proof uh, and an environment can be the better off you'll be because you can weather, you know, the things that might affect another industry.
So if you're. Investing, in any, any small business entrepreneurship is inevitably a, a risky endeavor. There's some risk always when you're kind of going out on your own, but if you can invest in something where you know that people at least are gonna buy bread, people need food at the end of the day. Yeah.
So one of those, it's one of those where you've got that stability and that certainty. How would you think about or compare this to other franchise or distributor models you've seen or thought through? Um. You know, I, I flowers is, is my knowledge base. Yeah. Uh, I, I've seen, uh, some other models out there. I mean, [00:05:00] obviously there's, you know, restaurant opportunities and, and you know, you see the, again, you see those come, you see them go.
I mean, there's the, the powerhouses that, that stay out there, your staples that you think about when you come to, you know, restaurant franchising. But there's a lot. That are failures. Yeah. And flour has been around a hundred years. They know how to bake. We're great at baking product and, and getting it to the market.
And, uh, we've, we've developed a, a solid program with our independent, uh, distributors to, uh, to give them the products and the brands that they need to succeed in the marketplace. Mm-hmm. Yeah. Yeah. I think it's the, the idea of. A product that's not going anywhere. You know, people need bread, but also backing it with, you're not just selling, you know, sourdough that you bake in your kitchen.
This is a brand that's been around for a hundred years with some of the biggest, you know, [00:06:00] sub-brands like Dave's Killer Bread attached to it that. You get to inherit all of that brand equity and all of the market research that keeps those brands relevant and impactful in today's market while still going around and you've got your business that you get to optimize and find ways to be more successful, to grow your territory, to grow your stores.
And I think that's a really attractive model for a lot of people. Yeah. And, and you mentioned the brands. There's there. Such a diverse group that we have. You talk about, you know, we've got Wonder Bread. Mm-hmm. Um, which is one I forget about too. Yeah. Right. Wonder Bread. I mean it when you're thinking about bread.
Wonder Bread is the Kleenex Uh, of the bread aisle. I mean, it's just, it's just such a known brand. Mm-hmm. And you've got Nature's Own Which we developed in 1978. Yeah. And you think back 1978, I mean the, the bread aisle was just, it was white bread. Yeah, that was it. There wasn't many, there wasn't many options.
There was maybe four or five different options, [00:07:00] and there wasn't a strong health-conscious consumer yet. It was emerging. So flowers, even back in 1978, was saying, what do we need to do? To really start thinking about making sure that we're going to stay relevant. And we came up with nature's own, which, you know, no artificial colors, preservatives, or flavors.
Mm-hmm. And just trying to keep a, a simple ingredient panel, which we're still trying to do and constantly reviewing that to stay on par with, with the consumer trends. And then you have, uh, other, uh. You know, think about Canyon Bakehouse, which is our gluten-free, uh, bread, which 'cause that, that's something to me that's emerged in the last 10 to 15 years where you have a lot of consumers that are saying, Hey, I can't have gluten in my diet and, but I really want bread.
And you know, 'cause people love bread. And that's one of those brands that you just. It's, it's very [00:08:00] rewarding to hear the feedback from consumers when they're telling you, I just, you know, I had given up on bread, thought I was never gonna be able to have it again because I just, I didn't like gluten-free bread.
It didn't taste good. And then I tried Canyon Bakehouse and it was just like, thank you. You know, giving, giving you the heart emojis and things like that, and just saying, thank you so much for making this great bread, and it just makes you feel good. Yeah, because that has to be one of the hardest things to balance of, hey, the consumer wants.
Four ingredients. They want it gluten-free, but also how do we make it taste good? Right. All that has to be, yeah. One of the hardest things. I'm sure there's all kinds of ways that you can bake bread to check off all the boxes, but making it taste good is ultimately one of the biggest. Oh yeah. And then you can't check that nobody's buying it, so.
Yeah. Yeah. I'm sure that's innovation Labs all day struggle is, I know what they want. I can check all these boxes, but. Nobody's gonna eat it 'cause it tastes like rocks, you know? Yeah, exactly. Yeah. At the end of the day, it's, it's, it's can't just be checking the boxes. It's gotta taste good too. And, and then just moving down [00:09:00] the, the list of brands, you know, you've got a tasty cake, which is, you know.
Originated in Philadelphia, just an iconic brand from that area. And Flowers was, uh, lucky enough to acquire that brand and then take it nationwide and, and deliver that great, those great tasting, uh, staples. Uh. To all consumers across the nation. And it was interesting to hear the, the feedback we got from consumers that had moved away from the Philadelphia area and was just like, oh, thank you so much for bringing my tasty cake to, uh, California or Texas.
And uh, then the people that try the brand, they're saying, oh my gosh, this is, this is great. We'd love the, we love these cakes. So it's just another powerhouse brand that our independent distributors have access to. What would you say is it that really makes people successful in today's context? You know, Josh, you, I mean, obviously you have to be [00:10:00] someone that's, uh. Customer oriented, making sure that you're taking care of your customers, developing relationships with them, and, um, that's part of it.
You have, I mean, you have to be a good, a good, uh, a good business owner as far as running a good business day in and day out, making sure that. You know, you're, you're giving, you're getting to the product, to the market on time, so you're there to capture the sales. Mm-hmm. You're going back later in the day to make sure that your, you know, your shelves are neat and stocked and ready for.
What, whatever shopping cycle is happening in your market, you know, you may have the early morning sales, mid-afternoon, late evening, whatever it is, you've gotta be able to be there, make sure that your market is ready, uh, that's gonna make you successful, but you also have [00:11:00] to be a conscientious business owner and, uh, you know, manage, uh, whether it's one truck or or 10, making sure that you're keeping up with your maintenance, making sure that you are.
Constantly checking your p and l. Mm-hmm. Where are you, you know, your profit and losses, where, where's your money going? And making sure that you're getting the most of it. That's, you know, that you can Yeah. To the bank. Yeah. To build, to build that wealth. Yeah. I Is this, is this a business where, you know, it's 20 years before you make any money?
Like what, what are we talking about in terms of like, are these people out that are actually doing well for themselves? Th that, that is a, that is a very. Interesting question with a, with a great answer. This is one thing that I think that really separates the Flowers Independent distributor program mm-hmm.
From other programs and that, you know, there's some, some programs, you're upside down for a while before you ever start making money. Uh, with, with this program, you're [00:12:00] going if, if you're doing all the right things, you should be making profit day one. That's a, that's a good value proposition. I'll take that.
Yeah. Yeah. And, and I think that is really encouraging to hear, you know, this isn't something where, hey, you're buying debt for, for 20 years and maybe it'll be worth something later. Uh, this is something where you can be doing well, you can generate wealth and, and there's lots of ways to continue to grow as well, and to continue to build this as a business for yourself and partner with flowers in it.
Absolutely. Because, you know, when you come in. And, and you, you purchase a territory, you're purchasing the geographical territory. Yeah. Okay. So you have, you already have predefined stops, uh, customers in that territory. So that's, that's all within your purview when, when you're ready to go out and hit the market.
Yeah. Day one. So you have those guaranteed sales and. Within those customers that you have that, [00:13:00] that, that are already buying product, you have opportunity there. Okay. That's the first opportunity because you can develop the relationships, get the extra displays, selling different products. Mm-hmm. So you're making more money, but you think about it.
W day one, you're not servicing every customer in that territory. Yeah. So that's, that's where you're, you've got your nonstops and you can, you know, call on them mm-hmm. And start servicing them and, and, and continue, you know, grow your business more. Yeah. Yeah. There's lots of opportunities there. And I think that is.
For, for the right mindset, the right entrepreneur. That's a really attractive mindset of knowing. I have a kind of guar, not guaranteed, but a really nice foundation that I come in on the stops that are already a part of my territory. And as hard as I work, the more that I am willing to kind of invest.
Time and energy to make this really work well. There's more opportunity both in the existing stops and in the others in my [00:14:00] territory and, and I can continue to build this based on the effort that I put in. Yeah, absolutely. And I think that was a great word, that you use a foundation, you're gonna come in with a foundation of customers.
It's not like you're getting a geographic territory and you've gotta go out and find customers to sell Product to, you know? Yeah. You don't have to go break into Walmart. exactly. Exactly. Yeah. And, and I think that's, that's one of the best things about kind of getting this off of the ground, but not having to start at zero.
Yeah. So, uh, uh, just kind of a side question that I think is interesting. Uh, you know, you mentioned side selling in grocery stores. How much has working at flowers and, and being more intimately familiar with the way grocery stores work changed the way that you shop and how you see every display in a store.
Oh yeah. It's, I become uber critical of, of, yeah. When I'm in the grocery store and it, you know, I, I look, I, I look at the competitor's product. Mm-hmm. Yeah. Where's the competitor putting their product in the store? Do they have better [00:15:00] space and position than, than flowers And, um, you know. I, I, I can tell you if I'm walking around the store and I see one of our products, you know, inevitably some consumers, they're gonna pick up, uh, one of our products and just decide somewhere along the line, maybe they're over in the soft drink section that they just didn't want it, or maybe they picked up one too many.
I'm gonna make sure that that loaf gets back to where it goes. Yeah. And uh, you know, or if I'm walking by the bread island, maybe, maybe we've had a run. Maybe there's been a lot of, a lot of consumers in there and, and the shelf's kind of tossed. Yeah. I'm gonna pull it up and neaten it up while I'm in there for sure.
Okay. That's what I was gonna ask. Do you go in and straighten it and shuffle the stale and you're like, I can't help myself? Oh, I can't. I can't. I, it's, it's a point of pride. Yeah. That's, I mean, I think that's, I think that's evident just in. It, it, it matches kind of the work ethic. I've, I've heard from you and I think the respect that both what you have for the Flowers brand and, and I think to a certain extent it reflects the respect that Flowers [00:16:00] has for, for IDPs as well, and that it's, it is all one group effort to make sure that.
Flowers is successful and you know, whether it's in the independent markets where a contractor's selling and, and directly arranging in their stores, or it's the way that you build and support the sales team, the, the, the IDP team and, and all of the communications between.
We have to always be working on that relationship with them and that partnership and it, it's about respect. Mm-hmm. Because, uh, you know, we have to perform together. Uh. To win. Yeah. Yeah. And I think that is a perfect place to stop. That's, you know, kind of where Flowers is today. The challenges and the ways that both you and, uh, independent distributors are weathering it and, and finding ways to be successful and make sure that flowers is still gonna be here for the next a hundred years.
Right. Absolutely. Perfect. All right. Well, Chad, it was a pleasure having you here again. Thank you. Thank you, [00:17:00] Josh.
