What’s Behind the ‘Massive Shortage’ of Snacks in New York City?

Mar 19, 2018  •  Post A Comment

“Scores of Big Apple convenience stores have run out of Doritos, Cheetos and other Frito-Lay products — and snack fans can blame PepsiCo chief executive Indra Nooyi for their less crunchy lunches,” The New York Post reports.

The paper says it’s fallout from when PepsiCo started cutting the pay of drivers in its Frito-Lay division last year. The Post reports that when drivers saw pay cuts of as much as 33%, or $30,000, dozens of them quit.

“Even with management taking over some routes in Brooklyn, Manhattan and Queens, there are not enough trucks on the road to supply every customer, sources said,” The Post reports.

The owner of a lobby newsstand in a Park Avenue office building reportedly has not had a Frito-Lay delivery in three months. “I call the distribution center and no one answers,” the owner told the paper.

“At the Brooklyn depot, about 35 of the 140 drivers — who deliver to stores in that borough and to those in Manhattan south of 49th Street — have quit since the August change to drivers’ pay scales, sources said,” The Post reports, adding: “The change vastly trimmed, or mostly did away with, commissions, which had rewarded drivers who hustled to increase their revenue.

“The new structure, which is being rolled out nationally, is more salary-driven, sources said. It comes as Frito-Lay North America’s revenue rose just 1.6 percent last year, to $15.8 billion, on the strength of price hikes, not growth.”


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