Pandemic takes toll on supply chain

By Georgia Cronin

- Last updated on GMT

Pandemic takes toll on hospitality supply chain

Related tags: Wholesale, Restaurant, Coronavirus, Cga, Foodservice

The Coronavirus pandemic has caused supply chain difficulties for more than nine in ten hospitality operators since they reopened in July, CGA and Prestige Purchasing has found.

A new survey has revealed that just 8% of operators have escaped supply challenges since the end of the first lockdown, and just 9% have avoided delays.

Nearly three quarters of operators (73%) said service levels had decreased since July, versus just 5% who said they had improved.

However, the survey also revealed the efforts suppliers have been making to mitigate the impact on businesses, as just a quarter of operators (26%) said supply challenges had been worse than expected.

Nearly two thirds (63%) said most supplies had arrived on time, but the vast majority (95%) said deliveries had been missing products, and well over half (60%) said these were at 47% or below (13%) the level they expected.

One in five (20%) of respondents reported price rises over the summer, with operators citing fruit and veg (40%), poultry (27%), fish and seafood (25%) and dairy (33%) as areas where prices had increased.

“These figures show the massive impact of the pandemic and lockdowns across the hospitality supply chain,” said CGA client director of food and retail Fiona Speakman.

“Suppliers are working in exceptionally difficult circumstances, and many operators have been grateful for their support and hard work in responding to issues that are completely beyond their control.

“As we enter the crucial Christmas trading period, suppliers and operators alike will be hoping for a strong end to a very tough year. But with the end of the UK’s transition from the EU."

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