For those in the United Kingdom looking to enjoy the sweet taste of a McDonald’s milkshake, the wait is on. The fast-food giant that made the Happy Meal a part of many childhoods is facing an unusual situation. It has officially run out of milkshakes and customers are not happy. What’s driving the shortage? McDonald’s blames the lack of availability of its popular novelty on a combination of factors including supply chain disruptions caused by the COVID-19 pandemic and holdups associated with Brexit. Even those willing to choose an alternative to the milkshake might find that they have to make do with their second or third choice as the company is also struggling to keep other beverages in stock.
Like many other companies in the United Kingdom, McDonald’s has been hit hard by a nationwide shortage of truck drivers. Prior to the United Kingdom’s departure from the European Union, the country relied on an influx of drivers from Eastern European countries like Poland. Under a key provision of the European Union, workers were able to move freely from one member country to another. This meant that truck drivers in Poland could capitalize on opportunities to work in the United Kingdom. Now, though, because the United Kingdom is no longer part of the European Union, immigration regulations prevent the same individuals from driving in the United Kingdom. The shortage is further exacerbated as some UK drivers left the sector during the pandemic in pursuit of alternative employment. While the race is on to get new UK-based drivers trained and licensed, COVID-19 is making it difficult to move swiftly enough to prevent the delivery problems like the one McDonald’s is experiencing. Indeed, so far, McDonald’s hasn’t been able to say exactly when milkshakes will be back on the menu, leaving customers craving their favorite shake out in the cold.
Discussion Questions
- The market forces of supply and demand typically conspire to push prices upward when demand outstrips supply until equilibrium is restored. Do you think that will occur for McDonald’s milkshakes? Explain your response.
- McDonald’s is not the only UK company to be hard hit by the current shortage of truck drivers. In addition to running out of critical goods, what are the implications for companies like McDonald’s? What does it mean for UK customers?
- Prior to Brexit, the United Kingdom’s departure from the European Union, the country relied on truck drivers from other European Union countries, especially those in Eastern Europe. What does this suggest about wages for truck drivers in the United Kingdom as compared to Eastern Europe? What is likely to happen to UK and Eastern European wages for drivers going forward?
Sources: BBC News: McDonald’s runs out of milkshakes in England, Scotland and Wales; Fortune: No McDonald’s milkshakes, no chicken, no gas: Why the U.K.’s supply-chain woes are so acute ; CNBC: McDonald’s runs out of milkshakes as supply chain woes grip the UK , Photo by William Enrico Jr Quijano on Unsplash