Summary Takeaways
Q1 2022 Market Update
PLAN AHEAD!
Our industry faces significant risks at the outset of 2022, including … ▪ Restaurant recovery did happen in 2021, as industry sales bested 2019 (pre-pandemic) rates. However, government assistance and recovery programs have ended, and the count of restaurant patrons remains well-below pre-pandemic levels. Nations Restaurant News ▪ Inflation in Canada has reached its highest level in 18 years, 4.7%. The inflationary environment we are experiencing is the driven by a complex web of supply chain factors that will not be easily or rapidly untangled. ▪ Manufacturing and material expense, spiking energy costs, labor shortages and challenges to obtaining materials for production are making it more expensive for operators to run their companies. ▪ Shipping products, both at-sea and on-land continues to be costly and fraught with uncertainty. Container lines are setting long-term contract prices in ranges four times higher than previously seen, ports remain jammed, diesel fuel costs nearly $1.50 more per gallon now than at this time last year, trucking routes go underserved due to driver and equipment shortages, and delivery lead times lag severely.
Chinese New Year February 1-7, 2022
Beijing Olympics February 4-20, 2022
Working Together in 2022, 511 Foodservice and You!
511 Foodservice recognizes these risks and continues to mitigate them for our customers through the Supply Chain Crisis:
• We have sought and sourced alternative manufacturing options that cost less with no sacrifice in quality.
• We leverage deep relationships with transportation providers for best-cost solutions to move product to your warehouses. • We are investing in near-shore and domestic manufacturing and in new material substrates and product configurations to derive greater efficiency and to keep supplies flowing.
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