How institutional supply chains have hit the restaurant industry

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How institutional supply chains have hit the restaurant industry

The CEO of Legendary Restaurant Brands, which owns the iconic Bennigan's and Steak and Ale brands, explained on Monday how institutional supply chains have hit the restaurant industry and what steps should be taken to mitigate the problem?

Paul Mangiamele also noted that labor shortages are impacting the industry and told Cavuto: Coast to Coast on Monday that the vagaries of our business have never been as acute. Mangiamele noted that he focused on employee retention, stressing that intellectual capital of your teams and our franchise partners have been critical in getting us over these humps in our case. He explained that he recently signed a deal with a company in Miami, Florida using delivery vessels to bring his products to thousands of points of distribution both domestically and internationally. On Wednesday, President Biden called for private sector firms to step up and assist his administration's latest push to address the supply chain crisis that has sparked fears of empty shelves during the Holiday shopping season.

Biden s push coincided with the White House announcement that the ports of Los Angeles and Long Beach will shift to 24 7 operations to clear a cargo backlog. Several prominent retailers and logistics companies, including Walmart and UPS, have agreed to extend their hours of operation in response to supply chain disruptions.

Supply chain disruptions have hindered efforts to bolster the U.S. economy during COVID-19 pandemic. The labor shortage in major ports has contributed to a shippage logjam in major ports.

Several major companies have noted higher logistic costs and disruptions to their normal operations. The issues also impacted consumers in the form of empty shelves and higher prices, prompting fears that lower spending will slow the economic recovery.

Last week it was revealed that in September the U.S. consumer prices had accelerated to their highest annual rate in 13 years. Consumer Price Index rose 5.4% year over year in the Labor Department last month, conforming to the July reading for the hottest print since 2008. Prices increased monthly by 0.4%. Analysts surveyed by Refinitiv said the price rise would be 5.3% annual and 0.3% in September.

Food prices shot up 0.9% in the past month and are now up 4.6% annually, according to the index. This year the price for meats, poultry, fish and eggs increased 10.5%, while beef prices climbed a whopping 17.6%. Fruits and vegetables rose by 3%.

On Monday, Mangiamele urged the federal government to take more action to help solve the issues.

He acknowledged that Economic Injury Disaster Loans are available but noted that it takes literally months and months for they review our applications. Mangiamele went on to say that we should have another round of the PPP Paycheck Protection Program or take a look at some of the revitalization programs or the funding that was done under the Trump administration just to be released. It was approved already. Neil Cavuto told host Mangiamele that to deal with the challenges faced, we have taken a look at addressing and adjusting our operating hours. In some areas, we are closed a Monday morning, for example, or we do dinner for only a couple of days to have better utilization of the teams that we have, he continued. From a consumer point of view, thank God for our amazing food. He told Cavuto that all of his restaurants were able to remain open in the last 18 months even with all the economic challenges presented to the industry.

In fact, the prospects for growth look better than they ever have, Mangiamele said.