Heinz Ketchup Packet Shortage Puts A Squeeze On Restaurants

ACROSS AMERICA — When the coronavirus pandemic disrupted the world’s supply chain, it led to constant shortages of items such as toilet paper and exercise equipment as more people stayed home. Now it has come for its latest victim: ketchup packets.

Restaurants across the country are scrambling to deal with a growing shortage of the condiment after the COVID-19 pandemic forced businesses into a takeout model, according to a new report from The Wall Street Journal. As more Americans opted to grab takeout, restaurants’ supplies of ketchup packets began to dwindle.

The shortage has caused ketchup packet prices to rise by 13 percent since January 2020, according to the Journal. Long John Silver’s LLC told the paper the rise in price cost the company an extra $500,000.

Restaurants also had to get creative in dealing with the shortage by scouring stores to purchase ketchup in bulk and portion it out into small disposable cups.

Kraft Heinz Co., which dominates 70 percent of the retail market for ketchup, wasn’t prepared for such a spike in demand. The company couldn’t keep up with the nation’s increased packet usage and, according to the Journal, has had to reallocate resources to ramp up production.

The company is looking to increase its output by 25 percent, producing more than 12 billion packets of ketchup by the end of 2021.

States reopening for indoor and outdoor dining also present an additional challenge for restaurants trying to scramble for ketchup packets, according to USA Today.

As part of the Centers for Disease Control and Prevention's guidance for restaurants, diners will have to be given single-serving portions of condiments instead of bottles.

“Avoid using or sharing items that are reusable, such as menus, condiments and any other food containers,” the CDC’s guidance reads. “Instead, use disposable or digital menus (menus viewed on cellphones), single serving condiments and no-touch trash cans and doors.”