Pain at the Pump: How Gas Prices are Impacting Restaurants – Spring 2022

 

CHARLOTTE, N.C. — We’re all feeling the pain at the pump as we’re officially hitting the highest gas prices world wide. How do these prices impact APS?

• We’re seeing an increase as much as 70% in delivery prices for getting products to our warehouse.
• This leads to a price increase for the products.
• Which then leads to restaurants raising menu prices in order to balance the rising cost of products while the restaurant’s margin of profit is already thin.
• Not only are trucking costs rising, less trucks are on the road. This makes the demand for delivery even greater and more competitive.

It’s a tough situation to be in as restaurants are still dealing with the difficulties and impact of the past two years.

By |2022-04-19T10:50:35-05:00April 19th, 2022|Coffee Chat with Nick|0 Comments

Supply Chain Shortage Update: Spring 2022

 

CHARLOTTE, N.C. — While things are improving, the restaurant industry is not out of the weeds yet when it comes to product shortages. What Albemarle Paper Supply is seeing this Spring 2022:

Raw materials – The supply level is improving but there are still some shortages in raw materials it takes to manufacture the paper supplies restaurants and small businesses rely on.

Labor – The labor force is getting a bit stronger on the manufacturing level, and for trucking and transportation. There are still jobs to be filled on the factory floors working the machinery.

Order Limits – Many manufacturers facing supply shortages have placed order limits on how much product suppliers can order. The good news here is that many of these limits are being lifted or raised, allowing product suppliers to order more inventory.

Now it’s a matter of actually increasing the number of SKUs or different types of products available.

What this means for restaurants and patrons: It will probably be another three to six months before paper product suppliers see comfortable levels of inventory. So if you’re a restaurant patron, be patient with your local restaurants. Everyone is still adapting to the post-COVID industry squeeze and things are looking up.

By |2022-04-12T10:15:12-05:00April 12th, 2022|Coffee Chat with Nick|0 Comments

Notice Different Take-Out Boxes? Supply Chain Shortages Restaurants are Facing Now

 

CHARLOTTE, N.C. — Have you noticed different take-out boxes at your favorite restaurant recently?  There’s a more likely reason than management just decided to switch up the products.

As temperatures dip and people turn to take-out versus dining-out, Albemarle Paper Supply (APS) co-owner, Nick Kalogeromitros, shares an update on what he’s seeing when it comes to product shortages.

Imported Products

There are a lot of products not made in the US that suppliers are feeling a lag on receiving.  “We haven’t had straws in a couple of months now,” says Kalogeromitros.  Also listing gloves and plastic cutlery amongst those in short supply.

Raw Materials

Product manufacturers are having trouble receiving the raw materials needed to produce.  APS uses an aluminums, waxed, and deli paper supplier out of Chicago that manufactures products and they are having to short orders due to lack of raw materials.  

“Just this week we had a shipment and half the order did not get fulfilled because of raw materials issue,” says Kalogeromitros.  

Labor Shortages

And just like the restaurants they supply, the manufacturers are struggling to find staff.  Lack of employees to operate the machinery that makes paper products is also causing shortages for supplies including styrofoam and soup cups. 

As restaurants continue to struggle with the aftermath of the pandemic closures, keep in mind that the shortages reach far beyond lack of staff and pack your patience this holiday dining season.

By |2021-12-07T01:50:12-05:00December 7th, 2021|Coffee Chat with Nick|0 Comments
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