Paul Mangiamele argues that ‘the irregularities of our business have never been so intense.’
The CEO of Legendary Restaurant Brands, which owns the iconic Bennigan and Steak and Ale brands, explained on Monday how “treacherous” supply chain issues and inflation are affecting the restaurant industry and what steps it took to mitigate the problems. Must go
Paul Mangiamele also noted that labor shortages are affecting the industry and told “Cavuto: Coast to Coast” on Monday that “the vagaries of our business have never been as acute.”
Mangiamele noted that they focused on employee “retention,” emphasizing that “the intellectual capital of your teams and, in our case, our franchise partners, have been instrumental in getting us out of these humps.”
He explained that he recently signed a deal with a company in Miami, Florida that uses “distribution ships” to bring its products “to thousands of points of distribution domestically and internationally.”
On Wednesday, President Biden called on private sector businesses to “step up” and aid his administration’s latest push to address the supply chain crisis that has sparked fears of empty shelves during the holiday shopping season. .
Biden’s push coincides with the White House’s announcement that the ports of Los Angeles and Long Beach will move to 24/7 operations to clear the cargo backlog. Several major retailers and logistics companies, including Walmart and UPS, have agreed to extend their hours of operation in response to supply chain disruptions.
Supply chain disruptions have hindered efforts to bolster the US economy during the COVID-19 pandemic. Labor shortage has contributed to the shipping standoff at major ports.
Several major companies have noted high logistics-related costs and disruptions to their normal operations. The issues have also hit consumers in the form of empty shelves and high prices, raising fears that lower spending will slow the economic recovery.
Jamie Dimon says supply chain problems ‘won’t be a problem next year’
It was revealed last week that US consumer prices rose in September at the fastest annual pace in 13 years. According to the Labor Department, the Consumer Price Index rose 5.4 percent over the past month, matching the July reading for the hottest print since 2008. Month-on-month prices increased by 0.4%. Analysts polled by Refinitiv were expecting prices to rise between 5.3% and 0.3% annually in September.
According to the index, food prices rose 0.9% last month and are now up 4.6% annually. Prices of meat, poultry, fish and eggs rose 10.5% this year, while beef prices rose 17.6%. Fruits and vegetables rose 3 per cent.
On Monday, Mangiamele called on the federal government to take more action to help address the issues.
He acknowledged that economic injury disaster loans are available, but added that “it takes literally months and months and months to review our applications.”
Mangiamele further added that “we should have another round of PPP”. [Paycheck Protection Program] Or take a look at some of the revitalization programs or funding that had to be released under the Trump administration. It was already approved.”
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Mangiamele told host Neil Cavuto that to address the challenges presented, “we have taken a look at addressing and adjusting our operating hours.”
“In some areas we are closed on Mondays, for example, or we only have dinner on certain days to make better use of the teams we have.” “From a consumer standpoint, thank God we have demand out there for our great food.”
He told Cavuto that all of his restaurants were able to stay open during the past 18 months, even in spite of all the economic challenges the industry has presented.
“Indeed, the growth prospects look better than ever,” Mangiamele said.
Granthshala Business’ Thomas Barrabee and Jonathan Garber contributed to this report.