June saw particular supply issues in the South of England after the return of restaurants, pubs, bars and other venues. Problems were made worse by shortage of labour as well as insufficient manufactured stock and Brexit-related challenges with imported goods.
Shaun Allen, chief executive of Prestige Purchasing, said: “June brought an unwelcome realisation to operators and suppliers alike that availability of labour will be a challenge for the foreseeable future. The difficulties with HGV drivers has been particularly impactful, and operators should consult carefully with suppliers to ensure that supply chains are as lean and efficient as possible.”
The Foodservice Price Index revealed that food inflation stood at 1.6% in June, having levelled off at a time of year when it typically falls. The situation stabilised in July but the demand is likely to peak again in early September when the schools and businesses increase order levels.
James Ashurst, client director at CGA, added: “It has been a long journey back for the foodservice sector, and the recent disruption to supply has come at the worst possible time. Labour shortages and price inflation are unwelcome challenges as consumer demand continues to increase, and fragile businesses must hope that conditions start to ease in the next few months.”