UK Domino’s stocking up imported ingredients in case of no-deal Brexit

Domino’s Pizza is worried that Brexit could take a big bite out of their bottom line.

The UK branch of the popular pie chain has reportedly spent more than $8.5 million stocking ingredients that they fear may wind up in short supply if the country goes ahead and splits from the European Union later this year.

While Domino’s gets flour and cheese from within the UK, its tomato sauce comes from Portugal, The Guardian reported.

And many toppings, such as frozen chicken and pineapple, are also imported, according to the report.

“A potential no-deal Brexit carries the increased risk of disruption to raw material supplies into the UK and foreign exchange volatility which could increase food costs,” Domino’s said in a statement issued to the paper Tuesday.

British importers of perishable food are particularly at risk if the UK bolts from the European Union without first working out a deal with to soften the economic blow, a so-called “no-deal” Brexit.

Some trade experts argue such a move would cause delays at the border and potentially hike up prices, according to the report.

McDonald’s, KFC, Pret a Manger and UK supermarkets teamed up earlier this year to warn of “significant” disruptions that could result from a “disorderly” break with the European Union, CNN reported.

Even the medical industry is preparing for a direct hit.

In a letter written late last month, the British Department of Health and Social Care urged suppliers to stockpile six weeks’ worth of its medicine and clinical product inventory beyond typical levels.

The hiked-up concern comes just as newly-sworn in Prime Minister Boris Johnson, who is pro-Brexit, insisted Monday that his country would leave the European Union by Oct. 31 — whether or not a deal is reached, according to the Guardian.

Source: Read Full Article