V? Nando's Hando's chicken shortage: how the pandemic has made supply and demand tougher to predict By John Boylan, August 21, 2021 Peri-peri chicken fans were disappointed and frustrated when Nando's an nounoed the temporary closure of nearly 5D restaurants. A chicken shortage has been blamed, and while reactions to the closures were satirised on social media, the problem is a serious challenge for the company. Hungry customers will no doubt be asking whether the supply could haye been better managed. Similar questions were more widely raised at the beginning of the pandemic when supermarkets ran out of toilet roll and flour. Some blamed poor planning by retailers, but spikes of demand like this had not been seen before. And the pandemic continues to disrupt established supply chains. The current shortages of chicken at Nando's are clue to disruptions in supply, rather than demand, which could not necessarily have been expected. The problem at Nando's seems to have been caused by labour shortages at their suppliers. And while the timing of labour shortages could not have been anticipated, their occurrence at some point could have been foreseen. For example, if an organisation is reliant on a single supplier for a product, then they may consider introducing a second supplier, who will also receive regular orders and can ex to respond to higher order yolumes if there are problems at the rst supplier. This can also help to address responses to unexpected spikes in demand. And if a problem affects all suppliers, then plans can be put in place to order larger quantities of substitute products. [5ource: h s' econyersationcom nandos-chiclcenshorta how-the andemichasmadesu and-demand PktH'UQAW'iE rCh1| meEEAA'I'ASM The article also states that Hando's should consider introducing a second [chicken] supplier. What effect do you think this would have on the prioe elasticity of supply [FEE] for Hando's chicken? Explain your answer. [2 marks