Food outlets caught in price madness
FAST food outlets in Bulawayo are in a quandary over the recent price increases of some of the basic goods as they are caught in between the prospect of joining the price madness and risk losing customers.
Most food operators have been offering budget meals that cost $1 but are now complaining that such pricing was now unsustainable due to continued increase in the prices of goods such as beef.
Some of the fast food outlets have increased prices but bemoaned that they were also recording low volumes of customers. Managers at some of the outlets told Sunday Business that they were left with no option except to increase meal prices.
“Rice, cooking oil and meat prices have gone up and to avoid incurring losses, we also slightly increased the price of our food. This has resulted in a drop of customers,” said a manager at a popular fast food outlet in the city.
“We slightly increased the price of food by a dollar or $2.”
Because of the pricing, some outlets have also stopped offering some dishes. A survey in retail outlets showed that retailers have continued to wantonly increase prices of basic commodities.
The survey showed that a standard 2kg of rice, which cost $1,80 in July, has increased to between $2,65 and $2,99 while a 2kg packet of chicken now costs up to $8,70 from $7. Commercial beef has also gone up to an average of $5 per kilogramme.
Consumer Council of Zimbabwe executive director Ms Rosemary Siyachitema said the prices of basic commodities had indeed increased and this was also negatively impacting on customers.
In a telephone interview, Confederation of Zimbabwe Retailers (CZR) president Mr Denford Mutashu said his organisation was not against price hikes as long as they can be justified.
“We are not against price hikes but the increases have to be in line with the cost of living and salary increases. This is the only justification which makes sense for price hikes,” said Mr Mutashu.
According to a CCZ report, some supermarkets have taken advantage of the shortage of cash to increase prices of basic commodities by amounts ranging from one cent to 40 cents. The report also shows that the cost of a monthly food basket for a family of six increased by about 0,52 percent in August. At the end of July, the food basket cost $576,84 and had increased to $579,84 by end of August.