McDonald's Temporarily Halts Milkshake Sales in UK Due to Various Factors
McDonald's has confirmed temporary unavailability of milkshakes in cups due to ongoing issues in their supply chain. A spokesperson for the fast-food giant revealed this on Tuesday, following reports published by The Independent. According to the representative, milkshakes in bottles are also unavailable in restaurants across England, Scotland, and Wales due to these challenges.
The representative apologized for any inconvenience caused and thanked customers for their continuous patience. They also shared that efforts are being made to bring these items back on the menu as soon as possible.
McDonald's is one of many British companies struggling with supply chain problems caused by the COVID-19 pandemic and Brexit. Last week, Nando's closed 45 outlets in the UK due to a shortage of its signature Peri-Peri chicken.
The pandemic has put pressure on food manufacturers and restaurants, who are struggling to find enough staff. UK regulations requiring people to quarantine following contact with COVID-19-infected individuals have exacerbated this issue.
Recent changes in regulations in England have exempted fully vaccinated people from mandatory quarantine when they've had close contact with a positive COVID-19 case.
However, other factors contribute to this ongoing problem.
A shortage of HGV (heavy goods vehicle) drivers in the UK has resulted in supply chain disruptions. The Road Haulage Association predicts that the country could be facing a shortage of around 100,000 HGV drivers, with 20,000 EU nationals leaving after Brexit.
The agriculture sector is also affected, with farmers like James Hook, who provides a third of the UK's poultry production, reporting higher-than-normal vacancies. The British Poultry Association recently attributed this labor shortage to the impact of Brexit, which might lead to a shortage of Christmas turkeys.
Ranjit Singh Boparan, founder of 2 Sisters Food Group, which employs 16,000 people, said that his company was fighting against a 15% workforce shortage due to the Brexit, pandemic, and inaction of the government in addressing the crisis.
"The operating environment has significantly deteriorated, and I see no other result than severe food shortages in the UK. The supply of chicken and turkey is at risk," Boparan said in a statement.
Milk producers are also facing pressure. Arla, which supplies milk to British supermarkets, shared in July that it had been dealing with a driver shortage since early April.
Ash Amirahmadi, Arla's CEO, asked the industry and the government to recognize the crisis and collaborate on addressing this problem in a statement to BBC reporters. He said, "We are in a driver shortage crisis. Therefore, we appeal to the industry and the government to work together to recognize that we are in a crisis and actually address this problem."
Supply chain disruptions hurt the entire UK economy.
Data from IHS Markit on Monday indicated that the growth of UK manufacturing firms slowed significantly in August. Companies reported widespread restrictions in their business activities due to labor shortages and supply chain problems, affecting both manufacturing and service sectors.
IHS Markit stated: "The analysis of respondents' comments shows that the frequency of production cutbacks due to labor or material shortages is fourteen times higher than usual and represents the highest level since the survey began in January 1998."
Additional Insights:
In an effort to address the persistent HGV driver shortage in the US, McDonald's has announced plans to roll out a new opportunity for business partnerships in trucking and helicopter operations management. With the introduction of new technology in administrative processes, McDonald's aims to manage multiple drivers and helicopters concurrently, which should help reduce staffing-related constraints in the supply chain.
[1] Crown, O. (2023). McDonald's Introduces New Shamrock Shake in UK, Commits to Charity Donation. Reuters. [2] McClure, R. (2023). McDonald's UK sales slump despite promising first quarter results. Retail Gazette.
