The likes of KFC, McDonald’s and Red Rooster face “pressures” unlike anything they “have known before” as a bite of the crisis.
A crucial chicken supplier to McDonald’s and KFC has revealed that severe staff shortages are leading to production disruption of some items and an overall decrease in product manufacturing.
Poultry producer Ingham’s has revealed how the record level of Omicron cases across Australia has severely affected its operations, with many of its employees forced into self-isolation.
“The rapid spread of the Omicron variant in the eastern states of Australia from December 2021 and the resulting staff shortages now also have a significant impact on Australia’s supply chain, operations, logistics and commercial performance of Ingham and some of its suppliers and customers. “, the company warned in a statement to the Australian Stock Exchange.
As a result, KFC was forced to offer a smaller menu in some restaurants as it faced chicken supply shortages.
Signs appeared in some stores stating that “no original chicken, zingers, fillets or wings” were available, adding that customers should refer to sold out stickers for available items.
Ingham’s said the staff shortage was causing production volumes to drop and he couldn’t predict how long the disruption would continue.
“Operational and commercial difficulties have resulted in significant operational inefficiency, additional costs and the temporary suspension of a number of Ingham’s products,” said Andrew Reeves, Managing Director of Ingham.
It’s not the only company experiencing a critical staff shortage, with supermarket giants Coles and Woolies reporting that up to 35% of employees do not work in distribution centers, leaving shelves empty.
McDonald’s also told news.com.au that some restaurants across Australia had had to reduce their opening hours “due to staff isolation requirements,” but their menus had not been affected.
“Like many businesses, McDonald’s Australia has carefully managed our supply chain – most of which is based here in Australia,” they said.
“We continue to work closely with our strong network of suppliers, farmers and long-term producers throughout the pandemic, to ensure that our customers can continue to enjoy our tasty food.”
RED COCK AND PORT
Meanwhile, the owner of Red Rooster and Porto told news.com.au that their supply chain “is currently under different pressures than anything we’ve known before,” but still offers a menu. full.
“We are fortunate to have established strong, long-term partnerships with our supplier partners that allow us to continue to provide our restaurants with the supplies they need,” said the spokesperson for Craveable Brands, owner of two fast food chains.
“Our supply partners have gone above and beyond to help us achieve a relatively uninterrupted supply to date, but we are always aware that the situation is not easy and can change at any time.
“We work closely with our supplier and franchise partners on a daily basis so that we can continue to provide customers with the products they want. “
DOMINO’S AND HUNGRY JACK’S
Pizza giant Domino’s also revealed that it was experiencing delays and challenges within its supply chain, but that was not impacting its menu or customers at this point, said a spokesperson.
Hungry Jack’s was a fast food restaurant that did not report any supply chain issues but said it was monitoring the situation.
“Protocols established over the past two years have allowed Hungry Jack’s to maintain restaurant operations and delivery,” a spokesperson said.