Culver's has entered into a partnership with supply chain solution provider Armada to restructure and enhance the efficiency of its distribution network, a move that aligns with the restaurant chain's expansion ambitions.

The fast-casual chain intends to open as many as 55 new locations each year over the next three to five years, with growth planned for new markets including Pennsylvania, New York, and Oklahoma, according to an Aug. 5 press release.

However, scaling brings increased supply chain complexity, involving more locations, suppliers, inventory, and freight, Armada CEO Chris O’Brien told Supply Chain Dive in an email.

Culver's already operates its own supply chain team and distribution network, but the shift in scale prompted the need for change, O’Brien explained. With more than 900 restaurants and plans to enter several new state markets, the company relies on numerous suppliers, making it challenging to coordinate all moving parts, he added.

Consolidation is critical, as slower-moving products become costlier to manage as the network expands, O’Brien said. Armada currently manages transportation on several supplier-direct lanes for Culver's.

“Slow moving products don't consistently fill truckloads, forcing distributors to carry more inventory than they want,” he said. “Redistribution solves that by pooling inventory and creating more efficient freight flows.”

Redistribution also positions inventory closer to where demand exists, reducing freight movement and improving product availability.

“We sit at the intersection of suppliers, distributors, transportation providers, and restaurant demand, which gives us visibility into how those pieces interact,” O’Brien said.

Frozen redistribution is already operational across two of Culver's Southeast and Midwest nodes, O'Brien said. Both nodes cover every distributor and restaurant within their regional footprints.

A dry redistribution program is currently in development, O'Brien said.

“Redistribution is the foundation,” O’Brien said. “Everything else builds on it, and we'd rather get that right before we widen the scope.”