NextGen Day

Logistics bottlenecks and raw material shortages are interrupting global supply chains, affecting everything from consumer goods to automobile sales, as a result of Russia’s invasion of Ukraine.

Filipino diners are the latest victims of the ongoing crisis, as popular restaurant chains struggle to fulfill demand, which has continued to rise in the post-pandemic period due to a recovery of economic activity.

Due to a “supply problem,” Mang Inasal, a grilled chicken business owned by Jollibee Foods Corp., has made its renowned chicken oil condiment available on a per-request basis.

Mary Grace Cafes, noted for her cakes and handmade buns, has also handled a reported ensaymada scarcity.

Last week, the company’s management informed consumers that “unfortunately, we’re facing some global supply challenges on a few raw ingredients that are beyond our control.”

No other information was provided, and Jollibee and Mary Grace spokespeople could not be reached for comment right away.

These issues could linger, according to Luis Gerardo Limlingan, managing director of Regina Capital Development, as pandemic lockdowns in China, a crucial transshipment hub, disrupt logistics and the Ukraine incursion cuts off access to key agricultural supplies.

“Shortages are likely to remain as we continue to face the geopolitical headwinds we’re facing right now,” Limlingan told the Inquirer.

Increased selling prices
Local firms have been affected differently by supply bottlenecks, with some surviving the crisis better by depending on more local suppliers.

Because “we get most of our supplies locally,” the owner of a local cafe group told the Inquirer, they have not encountered the same interruptions as competitors.

Due to logistical issues, McDonald’s Philippines informed customers last month that it will be selling smaller-sized French fries. Randy’s Doughnuts, based in Los Angeles, California, announced the temporary shutdown of their Bonifacio Global City outlet in Taguig, claiming that “we ran out of flour.”

“It’s also part of the marketing for some brands, particularly the larger ones.” To underline that their ingredients are sourced from a certain region,” said the coffee group’s owner, who asked to remain anonymous.

The owner confessed that while supply was plenty, they were compelled to raise pricing in recent months due to large increases in raw material and transportation expenses.

Businesses, according to Limlingan, can raise prices up to a specific point.

“It’s also large firms trying to strike a balance between tighter margins and losing potential clients owing to higher prices,” he explained.

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