Hospitality facing ‘enormous challenges’ with supply chains

By Georgi Gyton

- Last updated on GMT

Hospitality facing ‘enormous challenges’ with supply chains

Related tags: Supply chain, Nando's

Hospitality businesses across the country are facing 'enormous challenges' with their supply chains, Kate Nicholls has warned.

The UKHospitality chief executive told The Independent​ that around two-thirds of operators are saying certain goods are not arriving.

She said: “This has a knock-on impacting of reducing the menu they can offer customers and hitting sales.”

Earlier this week it emerged that Nando’s had been forced to either close or reduced the hours at around 50 of its restaurants​, after deliveries of chicken were affected by a nationwide shortage of lorry drivers, with shortages of certain food items and packaging at KFC also hitting the headlines.

Nick Allen, chief executive at the British Meat Processors Association (BMPA), said that the problems with Nando’s was 'the tip of the iceberg'.

“I think we’re going to see more and more [closures]," he told the newspaper.

"Some people are still trying to open up their restaurants – but they’re struggling to get staff and struggling for deliveries.”

Richard Griffiths, chief executive of the British Poultry Council (BPC) said Brexit had led to a shortage of workers in poultry production.

The BPC and the BMPA have called on their production workers to be allowed onto the government’s shortage occupation list so more workers can come from overseas.

Nando’s said it was hoping to have all of its restaurants open again from this Saturday.

For more on the supply chain problems currently being seen in the hospitality sector, take a look at​ this latest analysis​ by MCA, BigHospitality's sister site, which asks what are the key issues that are causing these shortages, whether the situation will continue and what the impact might be?

Related topics: Business & Legislation

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