The foodservice industry will finish strong in 2023 with a historic high of $846 billion in consumer spending. Although the industry is seemingly thriving there are still some lingering vulnerabilities from the pandemic, namely supply chain management. According to Datassential, today 17% of operators claim ingredient shortages or unavailability is a pressing challenge and 40% of consumers are concerned about food and beverage shortages.
This year 6% of restaurants claimed they have experienced manufacturers canceling orders due to supply issues, a 5% decrease from 2022. The same percentage of restaurants also have experienced distributors canceling orders due to supply issues, a 2% decrease from last year. The industry is still plagued with supply chain disruptions, although we see some improvement year over year.
We’ve invested heavily to establish redundant manufacturing facilities. In fact, we are the only cold brew coffee, tea, and botanical extract manufacturer in the U.S. with redundant manufacturing capabilities.
What factors may be responsible for mitigating shortages year over year?
During the pandemic when faced with shortages, operators would rather make last-minute substitutions than search for new suppliers or remove the items entirely from the menu. Today we see new trends emerging. In 2023 there is a 3% year over year increase in operators dual sourcing. Having dual suppliers helps minimize risk, offset unforeseen shortages and is likely responsible for the year over year decreases we see in supply chain disruption.
The Coffee Landscape
Commodities are particularly vulnerable to supply chain challenges. The global coffee sector faces unique risks such as adverse weather, inflation and increased transportation costs that can negatively impact supply.
At Javo, coffee and our customers are the heart of our business. We’ve invested heavily to establish redundant manufacturing facilities. In fact, we are the only cold brew coffee, tea, and botanical extract manufacturer in the U.S. with redundant manufacturing capabilities. This ensures continuity of supply at an optimal freight cost. We take great pride in responsible raw material sourcing and our patented cold brew process that produces superior sensory and yields.
Through these combined efforts, we’ve successfully navigated through the uncertainty vexing the industry. If you’re looking for a secondary coffee supplier or a single supplier that specializes in the category, Javo is your partner. From our new shelf stable coffee concentrates to our classic refrigerated concentrates, we deliver on sensory, and we deliver when we say we’re going to.
Start the new year off with a reliable supplier at your side.
