No hamburger buns available: SPC supply shortage... Burger King, Mom's Touch, and No Brand Burger face fallout

The worker death accident at SPC Samlip's Sihwa factory has caused ripples in the hamburger industry. Since the accident, bread production has been completely halted, leaving frontline burger franchises such as Burger King, Mom's Touch, and No Brand Burger struggling with a shortage of bread supplies. Meanwhile, Lotteria and McDonald's are relatively unaffected and have some spare capacity.

According to industry reports on the 28th, No Brand Burger operated by Shinsegae Food has recently suspended delivery services at some locations. Three directly managed stores are operating with shortened hours. They are experiencing difficulties in product sales due to a bread supply shortage, which is an essential ingredient for hamburgers. Regarding this, No Brand Burger sources all its hamburger buns from SPC Samlip.

A representative from Shinsegae Food stated, "Some stores, including directly operated ones, have suspended delivery, and we are prioritizing supplying hamburger buns to franchise stores," adding, "Internally, we are exploring other suppliers who can meet the specifications of our existing hamburger buns."

The operation of SPC Samlip's Sihwa Factory, which produces hamburger buns, has been halted, leading to widespread issues with bread supply in the frontline hamburger industry. The Sihwa Factory has suspended production since the 19th of this month following a work stoppage order due to a worker fatality incident.

Burger King and Mom's Touch, which use SPC Samlip bread, are in similar situations. Around the 21st of last month, Burger King's hamburger bun supply issues became a reality. They are informing customers through their website and app that "there are temporary difficulties in the supply of Burger King ingredients" and that "some promotions and deliveries may be reduced or suspended."

Mom's Touch also temporarily suspended delivery orders at some company-operated stores on the 24th due to a supply restriction of bread. This was because bread supplies from company-operated stores were redirected to franchise stores to prioritize their needs. A representative from Mom's Touch stated, "There has been a shortage of hamburger bread supply due to order restrictions from SPC Samlip," and added, "We normally receive bread from three suppliers, and we are exploring various options to secure additional supplies."

Due to this supply shortage, hamburger franchise companies have begun to identify alternative suppliers instead of SPC Samlip. The main domestic producers of hamburger buns are known to be three companies: SPC Samlip, Lotte Well Food, and Bimbo. SPC Samlip's market share for mass-produced buns is approximately 70%.

Currently, investigations by relevant authorities regarding violations of the Occupational Safety and Health Act and the Serious Accident Punishment Act related to an accident are underway at SPC Samlip's Sihwa Factory. An SPC official stated, "The schedule for resuming production has not yet been decided."

=======================

It seems that the factory has completely shut down due to the recent SPC death incident.

Repeated fatal accidents... I hope that hardworking people never have to die...

That's unfortunate..