5 ways the food supply chain will evolve in future
1 . The Rise Of ‘ Grocerants’: Professor Rigoberto Lopez, of the UConn Department of Agricultural and Resource Economics, predicts a future shift to grocery stores instead of restaurants as major purchasers in the food supply chain. The survival of many restaurants is in question, not just because of the shutdown but because fear is driving consumer decisions not to dine out; the effects on the economic depression on eating out will also shift consumers toward grocery stores. Some restaurants are shifting their role to cover gaps in their revenue shortfalls and playing the role of “grocerants,” where they operate as both a restaurant and a grocery store.
2. Feds Take On Larger Role: Due to revenue losses related to government- ordered closures, the restaurant industry’s survival is dependent on a targeted federal government response. In April, the National Restaurant Association sent a targeted relief plan to Congress, outlining specific ways the government can improve the industry’s survival — a close relationship that could carry on for future crises. Doug Baker, vice president of industry relations at the FMI- Food Industry Association, said the food industry is solidifying its public- private partnerships with government agencies to ensure the supply chain remains resilient.
3. Robots Step In: New technology such as the use of robotics for food manufacturing, Lopez said, will reduce food supply chain labor and enhance their productivity while reducing health risks.
4. Food Chain Support: New alliances are being forged to alleviate business disruptions. The FMI and International Food Distributors Association started working together to bring food, labor and equipment resources to grocery retail which was then expanded to other industry associations representing seafood and produce. FMI also partnered with Eightfold. ai to launch a talent exchange, which assists people from industries who have been shut down find work in the grocery supply chain.
5. Emergency Food: When COVID- 19 is behind us, the demand for food will not decline, but the purchasing power of many consumers will likely be shattered as unemployment rises and an economic depression takes place, according to Lopez. Since this problem will be national in scope, there is a role for the federal government to support emergency and pandemic food collection and distribution.