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David Malogna, er, Maloni (sorry, lots of protein talk in this episode) is in high demand among media outlets right now due to his expertise in food-service supply chains. He’s been featured by Bloomberg, Restaurant Business Online, ABC News, and others! Fortunately, he had 20 minutes to spare for this episode of “Give An Ovation”, where he described the current supply chain landscape, including what’s causing the current meat shortages, and gave his best advice for restaurant owners going forward:
1. It’s Not An Animal Shortage
As you may have heard, there’s a beef shortage right now. Some chains like Wendy’s or McDonald’s aren’t even offering burgers in some locations. But thankfully, it should be a temporary problem. Animals aren’t getting sick, and distribution channels haven’t crashed. Rather, meat production is a labor intensive process that requires employees to work closely with each other, so the real shortage is man-power. Once employees get back to work, the system will be fine.
2. Beef Prices Have Surged, But Will Come Down Rapidly
The great news is animals have a long shelf life. Once production can pick up again, there will be a surplus of meat which will bring prices down from their current heights. Cows have somewhat of a deadline, as they can’t put too much weight for health reasons (I guess we’re not the only ones worried about the extra COVID-19 poundage). But David expects production to accelerate within the next few weeks.
3. Supply Chain First, Then Price
Simply, it’s not worth fighting on price to all the while having the wrong supplier.
4. Visibility Throughout The Supply Chain
Every one involved in your supply chain is in flying by the seat of their pants right now. How many times have you heard “unprecedented times” in the last few months? Therefore, it’s important to get feedback from customers, and then proactively communicate with distributors and even suppliers so that everyone is on the same page. If your supply chain isn’t fitting the needs of customers, what good is it?
5. Keep Fighting
“Keep fighting the good fight” David said, “you’ll be surprised how much your creativity and your grit will pull you through.”
Thanks for reading! Make sure to check out the whole podcast, as well as other interviews with restaurant/business gurus by checking out “Give an Ovation” on YouTube, podcast.ovationup.com, or your favorite place to listen to podcasts.
David is Executive VP of ArrowStream, a foodservice supply chain technology company “dedicated to helping clients improve supply chain managment efficiency, strategic sourcing programs, food safety and food quality (arrowstream.com). Visit their website to learn more, and follow David Maloni on LinkedIn for amazing weekly content!