Supply Chain Issues Continue as Fast-Food Prices Soar

The shipping company Maersk said that it anticipates ongoing issues with the supply chain following a statement by its chief executive officer Søren Skou to CNN. 

“Right now the situation does not appear to be getting significantly better,” Skou said on CNN’s First Move. “I wish I could say that things are getting better, but right now there’s nothing in the numbers to suggest so.” 

The cause of the nation’s supply chain issues is attributed to a labor shortage, leaving docks without enough staff to unload ships as well as a lack of truckers and warehouse workers to transport goods. 

As COVID-19 cases drop nationwide, Skou expects that the issue may find some resolution later in the year.  

Many brands across the country, including franchisors, have been forced to increase prices due to the rise in operating costs that have been driven by supply chain issues, inflation and wage raises. 

Even brands that have significant buying power are raising prices due to rising operating costs and inflation. The U.S. Bureau of Labor Statistics said that take-out food prices, including fast-food, rose 6% last year. Meanwhile, orders at Chipotle have gone up 10% in the last year, while franchisor McDonald’s raised prices by about 6% throughout 2021, CNN reported.

According to CNN, restaurant executives expect price hikes to continue as they look for ways to mitigate cost pressures.

Related articles: 

• Restaurants Reduce Operating Hours Due to Staffing Shortages
• Menu Prices Reach a 39-Year High Due to Inflation