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Supply Chain Risk

What is the supply chain issues faced in the wake of Covid-19

Fears are that many manufacturers that supply the hospitality sector will see falling demand leaving them with festive food and drink that they are unable to sell. 

Chancellor Rishi Sunak unveiled support for hospitality businesses that are suffering from cancellations and falling trade in their busiest month this week.

Trade association UKHospitality, which represents the hospitality sector, welcomed the support. Writing earlier this week in The Times​ chief executive Kate Nicholls highlighted and recognised the impact of this “Christmas nightmare” on the wider supply chain. 

Concern has been about the knock-on impact on food and drink companies who supply to the hospitality sector.  

Rachel Dobson, managing director of Lynx Purchasing, said: “With suppliers having done everything possible to secure food and drink orders for hospitality operators, as supply chain challenges continue, it’s obviously a double blow if orders are now being cancelled just before Christmas. 

“The bigger fear will be the prospect of more restrictions due to the Omicron variant in the new year, which would hit both operators and suppliers hard. The supply chain is very fragile currently, and further disruption is likely to leave gaps in food and drink supply that will take time to plug.” 

‘Squeezed middle’

Richard Harrow, chief executive of the British Frozen Food Federation said that ‘once again’  the Government has ignored ‘the squeezed middle’ of the food industry – the companies that sit between agriculture and the hospitality and foodservice market.

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