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.