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Domino's, McDonald's, KFC spending millions to protect supply chain from a 'disorderly Brexit'

August 7, 2019

Fearing that a "disorderly Brexit" may interrupt its supply chain, Domino's in the U.K. has spent £7 million ($8.5 million) to stock up on imported ingredients. The likelihood of England leaving the European Union has increased as UK Prime Minister Boris Johnson said Britain is leaving by Oct. 31, with our without a deal in place.

Domino's, which imports a third of its supplies — including tomato sauce, frozen chicken, pineapple and tuna — is worried that a disorderly Brexit "carries the increased risk of disruption to raw material supplies," according to the chain's Tuesday earnings statement.

Domino's isn't the only chain preparing for the worst.

McDonald's, Pret a Manger and KFC have also warned of shortages and price increases if there's no Brexit deal. And the British Department of Health and Social Care has told suppliers to stockpile six weeks of inventory beyond typical levels.