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regular-article-logo Wednesday, 03 July 2024

Spiralling LPG prices push owners of small eateries to the brink

They said the steep rise in the cost of raw materials, most notably edible oil, has only made things worse

Debraj Mitra Calcutta Published 04.07.21, 01:22 AM
LPG cylinders.

LPG cylinders. Sanat Kr Sinha

The price of a 19kg LPG commercial cylinder in July 2020 was around Rs 1,200. In July 2021, it comes at around Rs 1,600.

The spiralling fuel prices have pushed the owners of many small eateries to the brink. The steep rise in the prices of raw materials, most notably edible oil, has only made things worse, they said.

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Saibal Ghosh, the owner of a fast-food centre in Behala, said a year ago, making a plate of mixed fried rice would cost him around Rs 85-90, including the overhead expenses. Now, making the same dish costs him around Rs 115-120.

“There has been a 30 per cent rise in the production cost. From vegetables to chicken to eggs and prawn, everything has become costlier. But I have not been able to increase my price because that would further reduce the already dipping footfall,” said Ghosh.

Ghosh needs around 25 cylinders (19kg) at his eatery every month. This time last year, he was buying 15 litre of cooking oil for Rs 1,700 from a wholesaler. Now, the same quantity costs him Rs 2,300.

Across Calcutta, the owners of eateries shared a similar plight of dropping margins. Irfan Ali, who sells biryanis at a joint in the Dalhousie area, has been buying 17kg commercial cylinders at around Rs 1,400. The price was around Rs 1,000 last year.

He had three employees, one cook, one to serve customers and one to wash dishes. Now, there are just two of them. The person serving biryani has been washing the dishes. “If things continue to be this bad, I will have to stick with just one cook and serve customers myself,” said Ali.

The spiralling fuel prices have also contributed to the rise in the cost of raw materials. A litre of diesel cost a little over Rs 75 in Calcutta this time last year. On Saturday, it sold at around Rs 91 per litre.

The rising transportation costs have had a cascading effect on the prices of vegetables across markets in the city.

The Covid-19 curbs have reduced the number of off-the-shelf orders. Some people are still weary about outside food.

The number of online orders has gone up but working with online aggregators is like a double-edged sword, said the owners of the joints.

“Working with online aggregators ensures an increase in volume of orders. But the margin in each order is negligible. I have to pay a commission of over 20 per cent to the aggregator. The pricing is focused on discounts and offers to lure more customers...,” said the co-owner of an Asian eatery in south Calcutta.

Till just before the pandemic, the eatery meant a 25-seater joint at Jadavpur. But the virus has forced the eatery shut for diners for good. The owners have converted it into a cloud kitchen to stay afloat. They are now dependent on online orders only.

“The rise in the price of cooking gas and cooking oil has bled me the most,” said the owner.

Sukalyan Datta, the owner of Crystal Chimney, a Chinese joint among the office crowd in Chandni Chowk area, summed up the mood. “Survival is primary now. Profit is secondary,” he said.

Datta has not reduced his employee pool but has stopped giving yearly bonuses and hikes.

“The bulk orders have gone down. I am focussing on customising the items on offer. Earlier, we used to serve four pieces of chicken in a half plate of chilli chicken and eight in a full plate. Now, we have started serving six pieces as an additional option. People are not ready to spend anything beyond their immediate needs.”

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