Taco Bell hit by nationwide ingredient shortages as the industry grapples with supply constraints

Business

Daily Mail 20 July, 2021 - 09:52am 7 views

By Peter Belfiore For Dailymail.Com

Taco Bell customers may be left hungry if they visit the chain any time soon amid a nationwide ingredient shortage.

The pandemic, which forced many factories to close, limited temporary visas for workers on farms and slowed transportation, has resulted in food shortages across the US as the food industry struggles to keep up with newly reopened restaurants, sports arenas and food halls.

At Taco Bell, a message posted atop the company's website the company apologized for its slimmed down menu.

'Sorry if we can't feed your current crave,' the announcement reads. 'Due to national ingredient shortages and delivery delays, we may be out of some items.'

Customers who frequent the chain shared their local Taco Bell woes on social media, reporting shortages of everything from meat, tortillas, sour cream to even sodas and hot sauce packets. 

An announcement on the Taco Bell website warned customers that some menu items might not be available as the chain struggles with ingredient shortages 

Taco Bell customers on social media shared their shortage stories, which appears to be affecting locations nationwide 

'For anyone craving taco bell tonight, I'll save you the drive, they don’t have chicken or beef, national shortage or something. i just ate black beans in a hard shell. was not worth it,' tweeted one user. 

'On my taco bell order they ran out of soft tortillas and gave me a hard taco,' posted another. 

On Reddit, where fans of the Yum Brands chain discuss topics such as their favorite menu items, one user reported that their Taco Bell had run out of tortillas, lettuce and tomato, and that an employee told them, 'they are out of pretty much anything that comes fresh.'

Taco Bell's woes reflected a larger trend of shortages amid pandemic supply chain issues  

One customer even asked if it was ethical to begin stockpiling hot sauce packets. 

Users familiar with the situation reported that supply chain issues were resulting in delayed deliveries for a variety of items, including a certain mop head used at a chain location and even napkins.

Taco Bell is not alone in grappling with such shortages. One Twitter user reported that after being met with an outage of meat, tomatoes, sour cream and the soda Baja Blast, his son had gone next door to a KFC, which was also out of white meat and potatoes. 

News of the Taco Bell shortages came a week after Popeyes announced that it had been stockpiling frozen chicken for six months in preparation for the rollout of its new chicken nugget product. 

Taco Bell's announcement came a week after Popeyes announced it had been stockpiling chicken to avoid shortages at its locations amid larger supply chain issues 

Amid widespread supply-chain issues, it appeared the fried chicken chain was attempting to head off any chance of a shortfall in ingredients.   

Popeyes Americas President Sami Siddiqui said the company's strategy was reflective of a broader market environment that is emerging from the coronavirus pandemic. 

Demand for chicken has surged following a meat processing slowdown during the pandemic, and prices are spiking as suppliers struggle to keep up and restaurants reopen. 

'Demand is very high right now, and consumer spending is surging' Siddiqui told Fortune. 'We're planning appropriately.'

The problem, it would appear, is not typically a scarcity of the product itself. 

Rather, networks of cargo ships, trains and trucks are buckling under the ongoing stress from the pandemic - which also caused facility closures and reduced labor at farms, factories and warehouses and contributed to shortages of everything from meat and cooking oil to plastic and glass packaging.

With a crunch in supply and increase in demand overall wholesale chicken prices have soared over the past year 

Similarly, the quick ramp-up of COVID-19 vaccines unleashed a surge in demand for meals at restaurants, ball parks and other venues that caught food producers and suppliers off guard.

US Foods, an industry supplier reported in its July chicken trends report that labor shortages, freight costs and supply issues continue to be a problem for most meat processors coming off of the pandemic.

In the case of chicken, with increased demand and constrained supply has come higher prices, with the USDA reporting that at $3.25 per pound, the price of chicken wings in June was double what it was the same time last year.

The price of wholesale chicken breast has also skyrocketed, with prices jumping to $1.91 per pound from 93 cents in the same period last year.

Overall wholesale chicken prices were 93 cents per pound in June compare to 68 cents in 2020.

It follows an overall trend in the United States where the Consumer Price Index, an average measure in the change the price of consumer goods rose 5.4% over the past year, fueling fears of inflation.

The consumer price index has risen 5.4 percent in the 12 months through June, the Labor Department said last week, which is the highest since August 2008

June's CPI gain was the largest since August 2008 and followed a 5 percent increase in the 12 months through May. The CPI increased 0.9 percent last month after advancing 0.6 percent in May. 

Excluding the volatile food and energy components, the so-called core CPI surged 4.5 percent on a year-on-year basis, the largest increase since November 1991, after rising 3.8 percent in May.

Prices are rising likely because of pent-up demand from people who are emerging from COVID-19 pandemic lockdowns and are flush with cash from stimulus payments.

There's also a crimped supply of goods as supply chains have gotten gummed up - with some countries still in the throes of fighting the virus and not producing the amount of particular goods they normally would.

The pickup in inflation has heightened concerns that the Federal Reserve might feel compelled to begin withdrawing its low-interest rate policies earlier than expected. If so, that would risk weakening the economy and potentially derailing the recovery.

Fed officials and the Biden administration have repeatedly said, though, that they regard the surge in inflation as a temporary response to supply shortages and other short-term disruptions as the economy quickly bounces back.   

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Taco Bell is facing a food shortage

CNN 20 July, 2021 - 02:00pm

Updated 1:41 PM ET, Tue July 20, 2021

Taco Bell is facing a food shortage

MSN Money 20 July, 2021 - 02:00pm

The chain apologized on its website Tuesday, saying that because of "national ingredient shortages and delivery delays" that Taco Bell locations might be out of some options.

"Apologies for the inconvenience and we hope to feed fans' current Taco Bell cravings again soon," Taco Bell said in a statement to CNN Business. It didn't specify which menu items or cities were affected.

Taco Bell is the latest restaurant chain to be affected by global supply chain disruptions that have rippled across industries. Fast food chains have been hit particularly hard in recent months by a labor shortage and low inventory on some key ingredients.

Taco Bell is owned by Yum Brands. Its CEO David Gibbs said in an April earnings call that supply chain issues have also been a problem for its sister restaurant KFC, which is struggling to keep up with strong consumer with demand for its new chicken sandwich.

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‘Out of some items’: Taco Bell dealing with nationwide ingredient shortage

fox8.com 20 July, 2021 - 12:22pm

(WJW) — Those looking to get that Taco Bell fix right now may be out of luck. The fast-food chain recently posted on its website that certain items are hard to come by these days.

“Sorry if we can’t feed your current crave,” Taco Bell, owned by Yum Brands, posted at the top of its site. “Due to national ingredient shortages and delivery delays, we may be out of some items.”

Fast food taco fans following social media and Reddit may already have heard (or experienced first hand!) about the drama of not being able to snag taco sauces or even burritos due to there being no chicken, beef, tortillas, lettuce or tomatoes on hand at certain locations.

taco bell employee told me there was a "national shortage of everything right now," and i have decided to get my economic news exclusively from drive thru employees from now on

Taco Bell is far from the only restaurant or company dealing with supply shortages this year, as many have been impacted during the pandemic.

The company has not said when they expect the supply shortage to be over, but they recently released a statement to CBS MoneyWatch about the inconvenience:

“Due to national transportation delays happening throughout most of the industry, we may temporarily be out of some items. Apologies for the inconvenience and we hope to feed fans’ current Taco Bell cravings again soon.”

Copyright 2021 Nexstar Media Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

EAST CLEVELAND, Ohio (WJW) -- The East Cleveland Police Department is speaking up after officers were charged with stealing cash from a driver a during traffic stop on July 9.

The officers, Alfonzo Cole and Willie Warner- Simms, are facing felony theft charges after East Cleveland Police Chief Scott Gardner says he received a complaint from someone that the officers took money during a traffic stop. The chief called the Cuyahoga County Sheriff’s Office and asked them to investigate.

While one didn’t make it, its siblings are on the road to recovery and a better life.

Officers were called to an apartment in Bethany, Oklahoma, in response to an "unresponsive juvenile." When police arrived, they found the boy with "ligature marks" around his neck.

Taco Bell warns of menu disruptions caused by shortage of ingredients

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Taco Bell warns it is running out of several key ingredients due to supply-chain snags, as customers report shortages of chicken, beef, taco shells, and hot sauce

Business Insider 20 July, 2021 - 12:00am

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The fast-food chain is warning customers that it is running out of several key ingredients. In an orange banner on the company's site Taco Bell said some of its menu items will not be available.

Many posts on social media pointed to shortages of staple ingredients, including chicken, beef, several different types of taco shells, as well as sauce packets, sour cream, and soda. 

"I swung by Taco Bell and they told me that due to shortages, they are out of burritos, quesadillas, crunch wraps, and sour cream," wrote Twitter user @HotStoveStats. "No reason in even being open."

A Taco Bell spokesperson would not confirm which menu items had been impacted by shortages.

​​"Due to national transportation delays happening throughout most of the industry, we may temporarily be out of some items," a Taco Bell spokesperson told Insider. "Apologies for the inconvenience and we hope to feed fans' current Taco Bell cravings again soon."

Several customers posted on Reddit about the issue. 

"They couldn't make any burritos since they were out of 10" tortillas, and none of the tacos had lettuce or tomato on them," cinch123 said on Reddit. "I went back through the drive through and asked about it and they said they are pretty much out of anything that comes fresh." 

Taco Bell is one of many restaurants struggling to grapple with shortages and supply chain snags as rising demand meets shipping delays.

Starbucks has also begun posting signs in its restaurants telling customers the chain might not be able to offer all of its menu options. Even local restaurants have been impacted by low food inventory. A Main restaurant told Insider's Grace Dean that the food shortages have forced the company to cut its hours, as well as several menu items.

Overall, pandemic supply chain snags and a national labor shortage have caused food prices to surge. Last month, several restaurants including Chipotle, Red Robin, and Cracker Barrel hiked prices due to rising commodity costs and the need to keep wages competitive.

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