MORE than a quarter of food and hospitality businesses have been impacted by stock shortages in recent weeks while shoppers have been warned to expect higher prices as the UK’s supply chain crisis deepens.
A survey by the Office for National Statistics (ONS) found that 27 per cent of food services and accommodation companies have experienced low stock levels, with problems also spreading to other sectors.
A quarter of retail and wholesalers also reported problems, as did 23 per cent of manufacturers.
A host of factors have caused mounting disruption to supply chains, resulting in empty shelves in supermarkets and forcing some restaurant chains to close their doors.
In the last weeks suppliers have faced shortages in their products, like McDonald’s who run out of milkshakes as major dairy suppliers struggled with a severe shortage of lorry drivers, while meat processors and fruit farms have also been hit by a long-running labour shortage that has been deepened by both the pandemic and Brexit.
The Road Haulage Association told the PA news agency the “substantial” pay rises on offer could force supermarkets to pass the costs on to customers.
“Certainly, drivers’ pay is increasing, often by quite substantial amounts,” said RHA managing director Rod Mckenzie.
“This, in turn, is a cost that will need to be passed on, and given the tight profit margins of most haulage operators, that means their rates to customers will have to go up.
“In turn, this may mean more of us paying higher prices for goods, services and shopping – including food prices – going forward.”
Problems are not restricted to food supplies. UK car makers reported their worst production figures for 65 years thanks to a global shortage of microchips and workers self-isolating.