{"id":7598,"date":"2022-09-21T15:58:52","date_gmt":"2022-09-21T15:58:52","guid":{"rendered":"https:\/\/partech.com\/?p=7598"},"modified":"2022-11-18T19:51:58","modified_gmt":"2022-11-18T19:51:58","slug":"how-restaurants-can-combat-food-supply-issues","status":"publish","type":"post","link":"https:\/\/partech.com\/2022\/09\/21\/how-restaurants-can-combat-food-supply-issues\/","title":{"rendered":"How Restaurants Can Combat Food Supply Issues"},"content":{"rendered":"\t\t
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\n\t\t\t\t\t\t\t\t\tFrom canned corn to coffee beans, it has been increasingly difficult to get ahold of certain ingredients and products across the industry. Restaurants have seen everything from out-of-stock flour and yeast to a shortage of ketchup packets. Recently, Burger King had to delay the launch of its new chicken sandwich because of a\u00a0pickle shortage<\/a>. Despite all this drama, restaurants are thinking fast to plan around issues when they arise.\n\nIf you\u2019re looking for a perfect storm of how supply and demand have left us all struggling, look no further than the humble chicken wing. A pizza party staple, chicken wings saw a massive spike in popularity as people were forced to stay home during the pandemic. Unfortunately, the result is that after the pandemic began, chicken wings became difficult to source.\n\nAccording to the\u00a0USDA\u2019s Livestock, Dairy, and Poultry Outlook<\/strong><\/a>\u00a0report from May 2021, chicken production during Q1 was down 3 percent compared to 2020. Making the issue worse is chicken being held in cold storage is at its lowest levels since November 2014.\n\n\u201cChicken wings, which have been in high demand as a takeout item during the pandemic, are at their lowest level in cold storage since 2012,\u201d the report added. \u201cAs the restaurant sector begins to reopen, in the short term, supplying the growing demand for chicken will be a challenge.\u201d\n\nRestaurants and eateries are getting creative to keep guests fed and maintain profit margins, but the impact is widespread. From the local American Legion ditching wing night in favor of clams to\u00a0Wingstop launching an entirely thigh-based concept<\/a><\/strong>\u00a0at all U.S. locations, due in part to supply concerns, the shortages left a lasting impact on restaurant operations.\n

Supply and Demand: Why the Food Supply Chain Matters<\/h2>\nLike any good supply chain, several forces dictate how food gets from manufacturers to restaurants. Supply and demand are the two biggest factors. When one outweighs the other, it can quickly throw everything out of alignment.\n\nWhen demand for items like flour and yeast, and later chicken wings, increased, retailers increased their orders to meet the growing demand. The run on these items created a bullwhip effect that moved from consumers to retailers, who then ordered more products to keep up with the higher demand. Wholesalers, confronted with larger orders from retailers, then made even larger orders to keep up with what the retailers wanted, putting immense pressure on manufacturers to produce.\n\nThe problem with the bullwhip effect, especially during the COVID-19 pandemic, is that it can totally derail the supply chain, both in terms of sheer volume and in production time. Food production needs to increase to meet higher demand, and that takes time. The longer turnaround time means that in some cases, like chicken wings, current supplies get strained. Combine this with more product moving from facilities and not enough truck drivers to move it, and eateries are left without products to sell.\n\nFruits and vegetables are often impacted by supply chain issues because of their seasonality. For example, the supply of oranges was down in 2021,\u00a0thanks to bad weather and an orange-killing disease ravaging Florida\u2019s crops<\/strong><\/a>. As a result, the state is on pace to produce fewer oranges, leaving the market to bear the brunt of the shortage.\n\nIn terms of chicken wings, the process is similar. Americans made a run on grocery stores right as restaurants were beefing up orders for takeout and delivery. As the country reopens, restaurants are stressing supply chains with an influx of new orders that leave distribution centers, manufacturers, and growers overwhelmed.\n

How Restaurants Can Avoid Food Shortages<\/h2>\n\nRestaurants feed millions of people every day and rely on everything from meat processing plants, farmers, and delivery truck drivers to their own managers, cooks, and servers to get everything right.\n\nKevin Rood, Director of Product for\u00a0PAR Data Central<\/strong><\/a>, says restaurants can avoid many issues associated with ingredient availability by keeping better tabs on the menu items they keep in stock.\n\n\u201cBy being able to accurately predict future usage, combined with on-hand inventory levels in the restaurant, you can order accurate quantities from food suppliers or inform them in advance to get ahead of shortages,\u201d Rood said. \u201cIf your mainline suppliers are expecting shortages, you can look for alternative local suppliers, or adjust the menu to promote alternative items, changing the product mix to drive sales of items that aren\u2019t in shortage.\u201d\n\nHowever, Rood is quick to note that coming out of a food shortage unscathed requires diligence. Restaurants need to maintain accurate inventory levels to prevent the bullwhip effect from occurring in the first place.\n\nIt might seem like a simple\u00a0task, but\u00a0keeping accurate inventory levels is something many restaurants struggle with. Whether they\u2019re fumbling with manual spreadsheets and graphs, miscounting their ingredient usage, or simply not taking an inventory at all, those mistakes quickly add up. Rood says implementing a back-office inventory tracking system that is easy to set up and maintain reduces errors and lessens stress on their suppliers.\n\n\u201cBy tracking inventory, a\u00a0back-office system like Data Central<\/strong><\/a>\u00a0can accurately predict how much of each inventory item will be consumed in the future, uniquely by day and by\u00a0restaurant,\u201d Rood explained. \u201cThe software is able to use item-level historical sales data and week-over-week comparisons\u00a0to generate accurate forecasts\u00a0uniquely for each restaurant,\u00a0as opposed to\u00a0using static par values or using a summary-level sales forecast that doesn\u2019t have product mix level granularity.\u201d\n

The Hidden Costs of Food Supply Issues<\/h2>\nNo restaurant wants to 86 a menu item simply because they don\u2019t have enough ingredients available to make it. Today\u2019s guests expect convenience and accuracy at a great price, so if they hear, \u201cI\u2019m sorry, but we\u2019re out of pickles,\u201d that likely isn\u2019t going to cut it. Accurate inventory measurements keep everyone in the loop so operators, owners, and cooks can get the ingredients they need when they need them.\n\n\u201cUnder-ordering can leave your guests high and dry, where you run out of ingredients to satisfy the demand,\u201d Rood said. \u201cWorst-case scenario,\u00a0if your\u00a0menu isn\u2019t updated\u00a0to reflect what\u2019s out of stock,\u00a0guests try to order items for which you\u2019re out of the ingredients\u00a0and you run the risk of losing the guest permanently,\u201d Rood explained.\n\nInventory isn\u2019t only about not having enough of something, either. Restaurants can easily order too much of an ingredient, expecting it to sell out, but it never does.\n\n\u201cOver-ordering will eventually lead to waste if you aren\u2019t careful,\u201d Rood noted. \u201cIf you don\u2019t use all the product and it expires, you\u2019re just throwing money in the trash.\u201d\n\nDespite ongoing food system shortages across the United States, restaurants not only can weather the storm but improve their bottom line. Investing in the right technology, including a robust inventory tracking system, helps reduce the number of mistakes that occur and helps maintain more accurate stocking levels over time.\n\nWhile that isn\u2019t to say keeping better inventory will make it easier to find chicken wings, it will give you a better idea of how and when to pivot if you need to.\n
\u2014\u2014Take control of your food supplies and improve your bottom line with PAR Data Central.\u00a0<\/em>Click here<\/em><\/strong><\/a>\u00a0to learn more!<\/em>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"

If you\u2019re looking for a perfect storm of how supply and demand have left us all struggling, look no further than the humble chicken wing. A pizza party staple, chicken wings saw a massive spike in popularity as people were forced to stay home during the pandemic. Unfortunately, the result is that after the pandemic began, chicken wings became difficult to source. <\/p>\n","protected":false},"author":14,"featured_media":7599,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"","footnotes":""},"categories":[15],"tags":[],"class_list":["post-7598","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blog"],"acf":[],"yoast_head":"\nHow Restaurants Can Combat Food Supply Issues - PAR Technology Blog<\/title>\n<meta name=\"description\" content=\"How Restaurants Can Combat Food Supply Issues by PAR Technology . . 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