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Taco Bell hit by nationwide ingredient shortages

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Yahoo Finance’s Brooke DiPalma reports details on the impact on Taco Bell’s menu due to supply chain issues.

Video Transcript


ALEXIS CHRISTOFOROUS: We are back with Brooke's Bites. And Brooke DiPalma here with all the details on this food shortage that Taco Bell is being plagued with. Brooke, what do you know?

BROOKE DIPALMA: Alexis, this is really a mix between Wall Street and Main Street as these everyday customers really get a lesson in economics when they go to Taco Bell. Customers flocking to social media to share that they can't take or can't purchase their favorites, including beef, chicken, hot sauce, and those 10-inch tortillas that are used to make the burritos.

Now while Taco Bell cannot confirm that these were the exact items that were facing the shortage, they did tell Yahoo Finance in a statement that due to national transportation delays happening throughout most of the industry, we may temporarily be out of some items. Apologies for the inconvenience, and we hope to feed fans' current Taco Bell cravings again soon.

Now when I logged onto the app, I tried to order one of my favorites, which just came out in May, that naked chicken chalupa. And sure enough, I got a notification prompting me to check another location, saying that my local Taco Bell was unable to fulfill my order. Now I do want to note that Yum Brands shares are really unaffected by this. They're bordering the flat line here and remain in the green. So it seems that Wall Street not too bothered by this food shortage, but I can certainly share that customers are.

KRISTIN MYERS: And if customers don't eat at Taco Bell and instead eat at some other fast food restaurants, Brooke, it looks like they might also be disappointed because Taco Bell is not alone in some of these food shortages. What can you tell us there? What other companies are also impacted?

BROOKE DIPALMA: Kristin, that's right. This is really not just particular to Taco Bell. This is the entire fast food industry that is really facing this shortage, this increase in demand and not enough supply, as people begin to recover and dine out and return, and also not to mention that labor shortage also impacting the food industry. But another company that is impacted, of course, Kraft Heinz with those ketchup bags. Yum Brands in the April earnings report, CEO David Gibbs saying that KFC, a sister brand of Taco Bell, was unable to fulfill their chicken sandwich orders due to the poultry shortage.

And back on June 10, I visited my local Starbucks. Been there again, and they continue to face a national shortage in ingredients. They, too, are prompting customers to be patient with them and seek another location if they want a specific menu item that's not available at that location.

KRISTIN MYERS: All right, Brooke, DiPalma thanks so much for bringing us all of those details.