Now It’s Getting Serious: Brexit Threatens the Pizza Supply Chain
If a no-deal Brexit leads to chaos for the UK/European Union supply chain, at least one company is prepared to ride out the confusion: Domino’s Pizza.
In a recent earnings statement, the UK branch of the fast food company recognized the “increased risk of disruption to raw material supplies,” about a third of which come from outside Britain – including tomato sauce, frozen chicken, and for that rare individual that actually enjoys Hawaiian pizza, pineapple.
To brace for impact, many UK citizens have reported that they’re preparing for the worst by stockpiling vital goods and medications. Domino’s is following suit by spending £7 million ($8.5 million USD) to increase its inventory and save its supply line into 2020.
They’re not the only fast food chain prepping for a messy Brexit – McDonalds, KFC, and Pret a Manger have partnered with UK supermarkets to warn consumers of the potential for serious supply chain disruptions and long lines at the border come October.
Domino’s spending not only helps save their supply chain, it helps cope with a secondary problem – with so many companies stockpiling for post-Brexit business, some have warned that the UK may be running out of frozen and chilled storage in which to keep the extra supplies.