PurposeThe short/fast-food and perishable food supply chains (PFSC) have similar characteristics of lower lifespan and variable demand, leading to significant waste. However, the global population surge and increased health awareness make it impossible to continue wasting food because it is responsible for the loss of economy, resources, and biodiversity. A sustainable transition in short and PFSC is necessary; thus, addressing challenges is critical to explore the best strategy for redesigning PFSC.Design/methodology/approachAn extensive literature review helped to identify 40 challenges, while a Delphi study highlighted 21 critical challenges. The fuzzy decision-making trial and evaluation laboratory method establishes a causal relationship between sustainable development (SD) challenges to help redesign PFSC.FindingsFrom a strategic development perspective, frequent transportation disruption is the main critical challenge. Lack of supplier reliability is the most substantial cause of independence, with a causal value of 2.878. Overhead costs and lack of green maintenance strategies are part of the performance-oriented challenges. As it belongs to the driving zone, the second quadrant requires control while transforming PFSC for better sustainable development.Practical implicationsThe study has several implications, such as lack of supplier reliability and frequent transportation disruption, which have the most robust causal value used as short-term strategy development. For short- and fast-food supply chains, it is necessary to study market and consumer behavior patterns to optimize inventory and customer service. Combating transportation disruption and supplier reliability challenges is vital in both PFSC and short and fast-food supply chains to reduce waste and promote sustainability.Originality/valueThe study’s findings are unique and put value toward the sustainable transition of PFSC by revealing critical challenges and their impact.