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Hospitality’s supply chain under pressure suggests survey

2nd Dec 2020 - 09:25
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Abstract
Covid-19 related disruption has caused supply difficulties for more than nine in ten hospitality operators since they re-opened in July, according to a new survey by CGA and Prestige Purchasing.

The survey showed that only 8% of operators escaped supply challenges since the end of the first national lockdown. Nearly three quarters (73%) think service levels have decreased since July, while just 5% think they have improved.

David Read, founder and chairman of Prestige Purchasing, said: “We should not view these problems as a failure within our supply community. They simply highlight the enormous challenges that the pandemic has brought to the whole value chain.

“The frequent and sudden changes to social restrictions and the complexity of regionality have reduced demand planning to educated guesswork. Social distancing and partial closures have dramatically reduced drop-size, disrupting route planning and making deliveries less economic.”

CGA and Prestige’s survey indicated that one in five (20%) respondents saw price increases over the summer with increases particularly apparent in fruit and vegetables (40%). Significant price rises has also been seen in meat & poultry (27%), fish & seafood (25%) and dairy (33%).

Fiona Speakman, client director of food and retail at CGA, added: “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 rapidly approaching, another daunting round of supply challenges may now be looming.”

Written by
Edward Waddell