A number of Wendy's restaurants across the US have reportedly run out of beef and are temporarily no longer serving items such as burgers to customers. According to reports, around 1,043 of the company's restaurants have listed items that contain beef products as out of stock.
The number of restaurants only represents about 18 percent of the company's total number of outlets throughout the US. Meanwhile, the other 82 percent of its outlets are still offering beef items. According to a study conducted by Stephens Inc, the shortage of beef varies by state. Most of the restaurants that no longer serve beef items are those located in states such as Ohio, New York, Michigan, and Tennessee.
Restaurants located in other states have not indicated that they are short on supplies. Wendy's spokeswoman, Heidi Schauer, mentioned in a statement that some of their beef suppliers in select states are experiencing production challenges due to the continued spread of the coronavirus pandemic.
The company is implementing measures to ensure that beef is being delivered to its outlets at least two or three times a week. However, the delivery scheduled in some areas may not be as consistent given the current environment. Schauer added that some of its outlets will be forced to temporarily limit available items due to the supply disruptions.
Unlike other fast-food chains, Wendy's markets its burgers as being made from fresh beef. McDonald's and Restaurant Brands International's Burger King, on the other hand, uses frozen beef, which can be stored and stockpiled in case of shortages. In 2018, Mcdonald's did start to use fresh beef for its Quarter Pounder burgers. Both McDonald's and Burger King have not reported any supply shortages due to disruptions.
Industry experts have pointed out that the US does not have a shortage of beef. Instead, the problem lies with the processing of the product, with most plants being forced to scale down operations or shut down completely due to the continued spread of the pandemic. According to the Food and Commercial Workers International Union, around a tenth of the country's beef production has been negatively affected by the lockdowns and restrictions imposed by the government. Due to the disruptions in processing, farmers in some areas have nowhere to send their livestock.
The US Department of Agriculture mentioned that the continued disruptions will likely result in the surge in prices for meats such as pork and beef in the coming months. The agency forecasts that meat prices could surge by as much as 2 percent in the coming months.
