The Latest Supply Shortage Could Make Takeout and Delivery a Challenge for the Restaurant Industry

Fast-food companies and restaurants are running out of nearly everything — ingredients, straws and now to-go packaging.

Read the original at 1851 Franchise
The Latest Supply Shortage Could Make Takeout and Delivery a Challenge for the Restaurant Industry

TL;DR

Fast-food companies and restaurants are facing a supply shortage crisis, with over 50% of operators experiencing shortages of to-go packaging and 72% seeing significant cost increases. The shortage is attributed to backup at ports, lack of truck drivers, labor crisis, and increased demand for off-premises food ordering.

Fast-food companies and restaurants are running out of nearly everything — ingredients, straws and now to-go packaging. According to Nation’s Restaurant News , more than 50% of restaurant operators who were surveyed by Datassential said they have experienced shortages or unavailability of to-go packaging, and 72% of them said the cost of to-go packaging is significantly increasing.

“It’s harder to get. It’s taking longer. It’s more expensive, and it’s really unpredictable,” Field Failing , New York City-based founder of the six-unit Fields Good Chicken, told NRN about his company’s to-go packaging experiences. “Now we’re getting a call on Friday that prices are going up 30% on Monday.”

This latest supply shortage crisis comes after a wave of related problems. According to Forbes , McDonald's suffered from a shortage of truck drivers over the summer and had to pull milkshakes from its menu for several weeks. Taco Bell also took a hit from a shortage of chicken and beef , forcing the brand to remove its most popular items off of its menu.

These shortages are a result of backup at the nation’s ports, the lack of truck drivers to move products to warehouses and the labor crisis that impacts speed at every step of the process, NRN reported. There is also an increased demand for off-premises food ordering , with many customers still choosing takeout or delivery over on-site dining due to fear of the COVID-19 Delta variant.

In this story

This story was originally published in 1851 Franchise on October 20, 2021. Burnaze summarizes and links to the original reporting.

Read the full story at 1851 Franchise

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