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Smart Chef

Supply Chain Shortage: How are Restaurants Affected?

The backbone of every successful restaurant is a well-managed food inventory. This consists of all raw materials needed to prepare dishes. Keeping track of these ingredients ensures enough supply for all recipes on the menu. Managing inventory requires close tracking of items consumed, reordering supplies promptly, and storing them correctly.


But because of several local and global events, fluctuating supply and demand levels have highly impacted food businesses. Inventory deficiencies have become such a common occurrence that consumers have started taking notice.


The Cost of Goods in 2021 vs 2022

Staples like milk, potatoes, sugar, meat, and cheeses are among the products that have become difficult to acquire. The ongoing issues with exporting and importing have prompted inflation of these basic commodities. As of August 2022, food inflation has gone up to 6.9% as opposed to 5.6% in August of 2021. And with no clear resolution from governments worldwide or policies to strengthen supply, business owners are left to step up and innovate. Turn these constraints and shortages in food sources around with the following practical steps to keep your food business afloat.


Where Is the Food Shortage Coming From?

The COVID-19 health crisis has paused the production and distribution of many goods across all industries. But the pandemic has not only been the crucial aspect at play. Animal diseases (foot and mouth, avian flu), global warming, lack of government support for growers and producers, and massive hoarding also contribute to this growing concern.  


And as the world reels from the war between Ukraine and Russia in 2022, prices of essential goods, including petroleum, cause a domino effect in importation costs and tariffs. With barely any room to move, what can food enterprises do to triumph over such hardships? Source:

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