Blog post

3 Reasons Food Supply Chains Are Still Struggling After COVID

From shortages of key ingredients to soaring prices for traditionally cheap staples like milk, wheat and butter, the food supply chain is in a state of disrepair and disrepair. Almost everyone is feeling it too, from the end consumer to grocery stores, restaurant chains and individual businesses, wholesalers, farmers and distributors. In many ways, these challenges are an extension of the impact of COVID-19, as 96% of restaurants experienced supply delays last year affecting operations-critical food items, according to a National Restaurant survey. Association.

Persistent bottlenecks remain notable, however, as the pandemic – for all intents and purposes – is over. But if this is indeed the case, why are food supply chains still struggling? Here are some contributing factors:

1. Rising inflation
The rising cost of living has a way of affecting just about everything, because just about everything in business costs money. And the food industry is feeling the pinch, forcing companies to cut productivity to stay profitable. As a separate National Restaurant Association survey points out, nearly 90% of respondents are spending more on business expenses than they did in 2019.

2. Recruitment Challenges
Inflation happens for a variety of reasons, but it starts with too much money chasing too few goods. In other words, demand greatly exceeds supply. In the food industry, this is largely due to the number of vacancies. From grocery stores to restaurants to warehouses and more, nearly every food-related business is struggling to hire. The shortage of truckers is also contributing to the food industry’s labor issues, as it is the truckers who transport the equipment, ingredients and other materials the industry needs to produce the goods that customers buy.

Grocers, restaurants, manufacturers and other food-related businesses are in recruiting mode. Grocers, restaurateurs, manufacturers and other food-related business owners are in recruiting mode.

Additionally, since customers have more channels to choose from when it comes to purchasing food – such as e-commerce or curbside pickup or delivery through an app service provider third parties – fulfilling these orders requires a lot more workers. Their absence creates inconsistencies that cause a chain reaction throughout the supply chain.

3. Packaging issues
For convenience, ease of handling, safety, storage and hygiene, food should be properly wrapped and grouped while conveying ingredients and other edible products from point A to point Z and all spaces in between. But just as some edibles are hard to find, so are packaging materials.

This is especially true when it comes to plastic and aluminum cans required for bottling beverages such as soft drinks, water, juices and others. As The Washington Post reported late last year, 13% of beverage options that are typically sold in grocery stores were unavailable last December. This compares to an overall stock-out range of between 5% and 10%. These bottling dilemmas are still in place today, which is why many alternative flavor options or choices – like zero-calorie, light, or caffeine-free – aren’t as widely available as the product brands are known or sell. most.