Local Restaurants Burdened by Supply Chain Disruptions

Operations of some local restaurants have been hampered by global supply chain disruptions, leading to shortages of some food items and driving prices higher. Due to this, most popular restaurant groups are now struggling to meet demand. Among the affected restaurants is the fast-food chain Mang Inasal, which is part of Jollibee Foods Corp. Their popular chicken oil condiment is now made available on a per-request basis only, citing “supply shortage.”

Mary Grace cafes, likewise, reported a shortage of its best-selling ensaymada pastries. The company’s management has advised customers that the company’s restaurant chains have been experiencing some global supply issues on a few raw materials. The issue is further seen through McDonald’s Philippines, which has told customers that it would sell smaller-sized French fries due to logistics problems.

Furthermore, the local branch of the Los Angeles-based Randy’s Doughnuts has temporarily shut down its operations in Bonifacio Global City, Taguig, as its flour supply has run out. These problems could likely persist as pandemic lockdowns in China — a critical transshipment hub — continue to disrupt logistics, said Regina Capital Development managing director Luis Gerardo Limlingan.

The issue is also exacerbated by the Ukraine invasion, cutting access to key food inputs. Limlingan added that shortages will likely remain as the shift in current geopolitical headwinds linger. Local businesses are impacted differently, with some weathering the crisis better by being more reliant on local suppliers, therefore mitigating the same disruptions experienced by their competitors.

Certain businesses have also been forced to increase prices in recent months as raw material and transport costs jumped significantly. “Businesses could raise prices but only up to a certain point,” Limlingan reminded. He also notes that businesses are trying to balance tighter margins against losing potential customers due to higher prices.

Source: Inquirer