NCR CORONAVIRUS RESPONSE RESOURCES

How the foodservice supply chain is pivoting amid COVID-19

Published April 10, 2020

The way people are feeding their families during this crisis is very different than just a few weeks or months ago. Most schools are closed, and restaurants are transitioning to delivery and pickup operations. This has had a significant impact on the foodservice industry, which could lose $24 billion over the next three months. Foodservice distributors who sell to these markets are having to pivot their business to keep inventory moving through their warehouses.

Many of these warehouses have inventory on hand that’s not being sold at normal rates. At the same time, many grocers and big box retailers are finding it difficult to keep food and cleaning items in stock.  The prevalence of “panic buying” across the U.S. means the typical shopper is struggling to keep fresh food in their homes, too. Local food banks are suffering as well, as donations often come from grocery overstock, which is few and far between these days. 

 

Foodservice distributors go direct

Foodservice distributors have realized they can solve both problems, and serve their communities in this time of need, by changing their customer base—many are now pivoting to selling direct to consumer and retailers, such as grocers. They're also modifying systems to open up their supply chains to allow consumers and grocers to place online orders for what’s in their warehouses. Some are also expanding their cash-and-carry business or adding new walk-up operations where they didn’t have it before.

 

NCR offers free system updates for foodservice operators

NCR is working directly with our foodservice customers to provide system updates free of charge to help expand their direct-to-consumer business. We’re deeply committed to the success of our customers and helping them stay afloat in this unprecedented time. 

If you’re an NCR Power Net or NCR Power Mobile customer, contact your NCR account manager or support team for more information on system modifications we can make to help you in this time of crisis. 

For more COVID-19 resources, articles and stories for retailers, visit NCR.com/coronavirus/retail.

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