BEST WISHES
-Vivek Narayan (cbedit@imaws.org)
After the COVID-19 pandemic, it looked like the catering sector was making a huge comeback with a 30 to 40 % hike in orders and bookings as compared to 2020 and 2021. The trend however continued for a year. However, the merry-time for more than three thousand caterers did not last long after when the state saw a huge influx of unauthorized caterers and parcel services who began functioning with no Food Safety License (FSL).
With the steep rise in prices of cereals, vegetables, meat items and other charges such as electricity and cooking, the entry of more than 4000 catering units who managed to thrive along the length and breadth of the state has turned out to be a double whammy. Many catering units that had good returns are now forced to cut down on employee strength and increase the prices of the food items and catering charges, thus alienating them from regular customers.
“The last two years have seen a major dip in business profit as far as catering business in Kerala is concerned. Many catering units are striving to make a mark in the industry as there has been a massive arrival of unauthorized catering units who managed to start a business without an FSL certificate or the required license. These units get away with GST and other taxes and manage to go unchecked from all the inspections that have been conducted by the food safety department of a concerned district”, said Prince George, President of All Kerala Catering Association (AKCA).
However, he added that the main concern apart from this issue is the day-to-day increase in the prices of vegetables, cereals, meat and other dairy products. “The price of mutton that stood at Rs 400 per kilogram three years ago has now touched Rs 950 per kilogram at any wholesale market in Kerala which is almost a 100 percent rise. On top of this, there is a hygiene protocol that needs to be maintained by the registered catering units. Hence our safety license will be cancelled. For an unauthorized catering unit, these issues are not even his concerns”, Prince George added.
The price of vegetables, meat, cooking oil, cooking gas and fuel has skyrocketed to about a 25 percent rise. AKCA informed that if the price of these essentials continues to rise, then the price of food items will also have to increase. The supply of banana leaves for Vishu ‘Sadya’ is from Tamil Nadu. Even though there is a supply of banana leaves in Kerala, more than 95 percent of the leaves come from the neighbouring states. A leaf costs around Rs 4.50 currently but during the festival season, it increases up to Rs 6 lakh. About Rs 10 lakh worth of business is done in Kerala during the Vishu season alone.
AKCA state general secretary Shahul Hameed stated that the public at large these days does not care about the FSL issue when it comes to bulk ordering. He said that part of the steep increase in prices, the biggest concern is the mushrooming of unauthorized catering units across the state where they manage to attract a large chunk of customers from all sectors.
“Nowadays even the state government programmes which are conducted in auditoriums or even government-controlled spaces are ordering from unauthorized catering units. The government should immediately interfere in this matter and ensure that there is a level playing ground that is been set”, said Shahul Hameed. It was during the COVID-19 pandemic that a vast majority of the catering units were forced to shut business as a large section of households decided to cook food at home in small spaces. However, after the pandemic, the catering business witnessed a major boom with orders and parcels bookings increasing up to 40 to 50 percent across the state.
Various catering houses and the stakeholders associated with the business have raised the matter with the health department. However, even after warnings were issued and fines introduced, the unauthorized catering units continue to operate across the state.
Meanwhile, traditional catering units that have been in the business for the last 30 to 35 years have mostly ‘reshaped’ and organized themselves to the new-age style of catering units where beyond the cuisines on the plate, the lighting and stage set-up also have to be given priority. Elias Zachariah, owner of ‘Casserole’ caterers based in Kottayam says that setting up catering units has become more expensive due to external factors such as the lighting, furniture and stage installation.
“The government should provide subsidized electricity or cooking gas to the catering units that feed a lot of people and also is a sector that provides jobs to a lot of youngsters. With rising prices of essential items and the salaries of the employees, it will be extremely difficult for an average caterer to run the business in the long run”, said Elias Zachariah.
Meanwhile, the Ramadan season has witnessed a surge in catering orders as many families order Ramadan kits from restaurants and kitchens. Cities like Kozhikode, Kannur, and Ernakulam are witnessing a huge demand for evening kits.
MG Sreevalsan, state treasurer, All Kerala Catering Association : “The biggest challenge we are facing now is that hundreds of small units that are coming up now which are taking orders are very low cost compared to the standard rates in the market. These are mostly catering units who do not have the necessary licenses and other required certificates. Due to this authorized units are losing business in a big way and thus affecting us directly. This issue has to be sorted out. This situation has become more prevalent after the Covid-19 pandemic”, he said
The All Kerala Catering Association and its stakeholders are expecting the state government to take a positive stance on the matter.
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