Supply chain's woes inflicting pain on Austin businesses
Lori Hawkins
Shonda Novak
Austin American-Statesman
https://www.statesman.com/?_ptid=%7Bjcx%...fj4BGqHi6LiAQAA


Customer George Cofer picks up his lunch from store employee Jayden Rinderknecht at Royal Blue Grocery on Congress Avenue in Austin on Friday. Royal Blue owner George Scariano said his stores have had to adjust due to the supply chain shortages.

Martin Cruz knows firsthand how the ongoing supply chain issues affecting businesses across the country have made the already tough restaurant business even more challenging.

As manager of Chinatown's two Austin restaurants, the business made numerous changes to adapt to the coronavirus pandemic, only to find itself confronting another round of issues as distribution channels have been disrupted.

The upending of the supply chain is making it difficult — and in some cases impossible — to get the products and materials needed Chinatown needs to keep its customers fed and its restaurants stocked, Cruz said.

"It's very difficult, especially for small businesses," Cruz said. "There's big competition among all industries now for everything — logistically, monetarily. We're family owned, so it's harder for us because we literally have to scrape for what's left over. We really have to get down and dirty about where we can get our supplies. Other restaurants also are struggling to keep up."

It's a similar story for a wide range of Central Texas businesses.[...]

Austin grocers say they are working with suppliers nonstop, but some shortages will be inevitable.

[...]

"The nationwide grocers have to supply stores all over America," Livingston said. "H-E-B has one focus, and that's Texas, which they can concentrate and do very well on."
Consumers want to buy

As the holiday season approaches, the issue for retailers is not whether consumers want to spend — they do. It's a question of how they will keep the shelves stocked.

[...]

Consumer spending drives about 70% of all U.S. economic activity and a sustained recovery from a pandemic-induced recession will require their participation, economists say.

[...]

"A lot of toys we carry are from China, and there are drastic price increases and straight-up unavailability," said Edwards, who estimates the average price of goods is up 30% from a year ago. [...]

As beef and fish prices have risen — 28% and 22%, respectively, in recent months, that has meant ordering frozen fish and meats, which is not as high of quality, Cruz said. So the restaurant has "jumped around from provider to provider" to maintain quality as possible, Cruz said. He said getting fresh or wild fish is virtually impossible — it's too cost prohibitive now to make a profit on, he said.-- excerpt, rest at link above --