Franchisees struggle with staffing and supply

There’s trouble in paradise, as franchisees struggle with staffing and supply. Franchisees can’t secure their supplies. If that is not enough, they can’t secure enough employees as well.

Supply chains are facing unprecedented disruptions that pose challenges to supply and distribution systems. Congested ocean freight routes, lockdowns, raw materials shortages, etc. mean one thing: everything will face delays more than you wish. Scarcity will lead to higher costs eventually.

We all know about the current global chip shortage causing higher prices and delays for cars and electronics. Now, supply chains woes are impacting franchisees as well. Those who can’t source their requirements from the local markets will be forced to adapt or go out of business. It’s that bad!

Stories about shortages of cartoon boxes to plastic polymers are very common at the moment. In fact, expect everything shipped to be delayed. Some experts are advising buyers to shop for their holiday and Christmas shopping now!

It Doesn’t Stop There!

Due to lifting of coronavirus restrictions, businesses mandating vaccinations for their workforce (and the fact that not enough people are willing to take the vaccine), many F&B outlets springing back to life and to hiring, it all led to one thing: a long and squeezing worker shortage. With more vacancies than ever, qualified candidates are asking for higher salaries, above the standard in the market.

Competitors are willing to pay more to hire more. Those who would not do the same won’t be able to stay open for business. Restaurants and other franchisees that rely on young, entry-level workers suffer the most. Many businesses started offering incentives to draw in more prospects, from paid interviews, to sign-on bonuses and better salaries.

Franchisees: Evolve or Perish

Franchisees need to act now, adapt, and explore the novel ways to attract new and keep their current workforce. They must be lenient and offer flexible timings, wage hikes, cash bonuses, and more holidays.

Thomas Heier, CEO, Wagamama, said he was struggling to fill chef vacancies in around 30 of the chain’s 147 UK sites. He was quoted saying: “We’re seeing increased competition from logistics and delivery firms who are struggling with an increased number of vacancies.”

“It’s a perfect storm of higher than normal demand, with supply chain challenges in the mix and a shortage of staff on the logistics side.” -Thomas Heier, CEO, Wagamama

Due to soaring demand for online shopping, Tesco and Asda now offer £1,000 starting bonuses for new recruits. Amazon is offering £1,000 “golden hellos” to attract new warehouse workers.

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