As the world nears Brexit date, McDonald’s, Pret a Manger, and KFC become the latest companies to join the UK supermarkets league, which has been warning about the consequences of exiting the European Union (EU), saying that it will lead to ‘significant’ disruptions in their supply chains.
In a written statement to the UK lawmakers, the companies said that they would fail to maintain food quality, durability and choice in case Britain moves out of the alliance without any favorable deal in place to secure trade with any European country.
The companies wrote that they have been trying their level best to reach on emergency plans with their suppliers, however, they can’t secure their supply chains completely. Apart from fast food companies, the representatives of British Retail Consortium and other chains across the country have also signed the letter.
The UK is all set to leave the EU in a couple of months, but the lawmakers in UK have declined the exit deal proposed by Theresa May, thereby worrying companies about negligible possibility of an orderly Brexit.
Amid the growing Brexit concerns, food suppliers have warned that a disorderly exit from the EU would result into a significant rise in the import costs, eventually leading to hike in food prices. According to them, the revised tariffs would devastate farmers in the UK.
The companies mentioned that they are trying to store maximum possible goods, but are lacking enough space to stockpile them as all chilled and frozen storage is occupied already, leaving them with the availability of negligible general warehousing space.
In a response to concerns raised by companies, one of spokespersons for the UK prime minister mentioned that the UK is brimming with food security based upon the myriad sources such as imports and robust domestic production. The growing heat around the Brexit is prompting companies in the UK to clamor better clarity on the forthcoming event.