This community helps tackle the supply crisis 1:09
New York (CNN Business) --
Frustrated shoppers are already dealing with unpredictable product shortages and empty shelves at their favorite supermarkets.
But if you're hoping to be able to go to a neighborhood convenience store for some daily necessities, you may not have any luck there either.
Convenience stores generally serve as an ideal substitute for a grocery store when all that is needed is bottled water, a couple of bags of chips, or maybe just a carton of milk.
This community helps tackle the supply crisis 1:09
That makes local stores perfect for the quick midweek grocery trip, said Arie Kotler, president and CEO of Arko Corp., which operates more than 1,400 small-format convenience stores in 28 states.
But convenience store operators say ongoing supply chain disruptions have also affected their ability to adequately meet the needs of shoppers in larger cities and, more importantly, customers' essential daily needs. in secondary markets and rural areas where a convenience store might be the only one in town to buy food.
Convenience stores are struggling to stay fully stocked, as supply chain issues cause production and delivery delays.
Kevin Smartt, CEO of Texas-based convenience store chain TXB (which stands for Texas Born) has been closely monitoring his distributors' weekly product availability reports.
The company operates 50 stores in Texas and Oklahoma.
Each location averages 400 square meters and serves a mix of freshly prepared foods such as tacos, salads and sandwiches, as well as a variety of packaged items to go.
Some places also sell fruits and vegetables.
advertising
"This is the magnitude of the problem right now," Smartt said.
"As a chain, we probably average 6,500 to 8,000 departures a week from manufacturers," he said.
'Outs' refers to a specific brand product that is out of stock and cannot be delivered that week.
Crisis in the supply chain goes a long way, why?
1:09
That is a very high number.
In TXB, out of stock is averaging 12% to 13% currently, Smartt said.
"In a normal environment, it would be around 1.5%."
Smartt said the usual contingency plan would be to restock with another brand, but even that is proving difficult.
"It's a daily struggle to buy substitute brands from alternative suppliers for the products we have. It's a war zone because everyone is doing the same thing," he said.
"It's a logistical nightmare and sometimes the substitutes we have to buy are more expensive."
Although TXB has stores in larger cities like Austin, Texas, most of its locations are in small towns, many with populations of just 2,000 to 3,000 residents, where it is the only store in town, he said.
"In those places, the convenience store is a lifeline for the community," Smartt said.
"There's a lot of frustration from customers. Anything that adds to supply chain challenges, like bad weather, is making it worse."
"In many communities, we are the only ones," says vice president of chain store
That's also a challenge for Arko, which has most of its stores in small towns and rural areas.
"In a lot of communities, we're the only ones," said Mike Welsh, the company's senior vice president of operations.
"It's a town with a mountain around it, for example. There's a high school and a town hall. It's a small community where the school football team comes to us after a game to celebrate."
Supply problems start to affect the 15th birthday parties 2:43
Those communities tend to rely on the local convenience store for more than just grocery shopping.
"A local health department contacted us about a store in southwestern Virginia to use as a mobile location for vaccines," Welsh said.
The omicron variant of the new coronavirus has spread among Arko's own store workers, though Welsh said stores have so far avoided closures.
Welsh said quite a few Arko locations have kitchens that prepare ready-to-eat foods like pizza and chicken.
Other products are what you would normally expect to find at a convenience store: bottled water, soft drinks, chips, and candy.
Other merchandise has been added throughout the pandemic, such as soaps, masks and disinfectant wipes.
"The community trusts us for all of these products. For us, especially in our markets, having a well-oiled supply chain that moves quickly is critical," he said.
Like TXB, Welsh said shoppers at Arko-owned convenience stores have fewer options due to the supply chain slowdown.
"We're trying to fill in the gaps with substitutes, and sometimes we just can't," he said.
The uncertainty of not knowing what they will be able to buy on a given day due to shortages is creating anxiety in customers.
At an Arko store, Welsh recently saw that a group of customers had formed early, before the delivery trucks were scheduled to arrive.
"They were waiting for the trucks to unload in hopes of getting what they needed," she said.
supply chainShortage