Burger Shortages Due to Bread Supply Disruptions
Food Service Industry Moves to Diversify Supply Sources
After operations at the SPC Samlip Siwha factory were suspended due to a fatal accident, burger franchises and other food service companies are experiencing disruptions in their bread supply. In response to the unstable supply situation, restaurant chains are preparing countermeasures, such as diversifying their sources of supply.
According to the food service industry on June 2, some Lotteria locations operated by Lotte GRS are marking certain menu items, such as the signature Ria Bulgogi and Ria Shrimp burgers, as sold out. This is due to irregular delivery schedules for burger buns supplied by SPC Samlip. Regarding this, a Lotte GRS representative stated, "To minimize inconvenience for consumers, we are considering sourcing more buns from Lotte Wellfood and other suppliers." It is known that Lotte GRS sources hamburger buns from SPC Samlip, Lotte Wellfood, and several small and medium-sized enterprises.
No Brand Burger, operated by Shinsegae Food, recently suspended operations at five directly managed stores, including Euljiro 4-ga Station and Seoul City Hall locations. Since last week, the supply of buns has decreased by 10 to 15 percent, and as the available buns were prioritized for franchise stores, there was a shortage for company-owned stores, leading to their temporary closure. A Shinsegae Food representative said, "We are reviewing solutions such as securing additional suppliers or producing buns in-house to secure sufficient quantities."
Outback Steakhouse has been unable to serve its signature Bushman Bread and is offering alternative products instead. Some locations are providing side dishes such as whole potatoes or French fries in place of bread, as there are no substitute breads available. An Outback representative stated, "We are looking for additional bread suppliers besides SPC Samlip."
Lotteria announced through its website that the supply of hamburger buns is not smooth. Lotteria website.
In addition, Burger King is monitoring the bun supply situation, as some menu items at certain stores sell out for one to two hours each day. Mom's Touch is also receiving buns from suppliers other than SPC, and is considering measures such as diversifying supply sources to ensure supply stability.
The convenience store industry, which has also experienced disruptions in the supply of products such as packaged bread, is responding as well. At Seven-Eleven, it is reported that 40 percent of SPC Samlip products, including KBO Bread, have been suspended from ordering. A Seven-Eleven representative stated, "We have provided guidance on alternative products, such as private brand (PB) items and those from Lotte Wellfood."
A GS25 representative said, "As our exclusive bakery products are popular, we plan to further strengthen cooperation with small manufacturers that produce these items together with us."
Meanwhile, SPC Samlip announced that it resumed operations on some production lines at the Siwha factory on this day. Previously, on May 19, a female worker in her 50s died after being caught in a machine while working at the SPC Samlip Siwha factory. Following the accident, the factory was completely shut down. However, after two weeks of total shutdown, operations have gradually resumed on production lines not directly or indirectly related to the accident, while the lines associated with the incident remain suspended.
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