Mangaluru
The catering industry in the coastal districts is facing operational challenges due to unpredictable price fluctuations, particularly during festivals and high-demand seasons. Industry stakeholders indicate that these price variations create financial strain, affecting their ability to maintain profitable operations or adjust terms with existing clients.
The standard practice involves booking catering services up to a year or minimally a month before events. Pricing quotes are calculated using current market rates for ingredients, especially vegetables, meat and fish. The situation becomes problematic when prices of meat and fish increase significantly on the event date. We are left with a thin margin or no margin. We cannot ask the client as well, said AA Ashwatham Hegde, Proprietor of Tulunadu Food Catering Services.
Hegde illustrated that a chicken dish priced when market rate is at Rs 200 per kg, suppliers often increase it to Rs 230 per kg upon learning of multiple events during specific dates. This was not the case before. Fish prices also demonstrate significant variations based on availability.
The price variation on selective days of events is not monitored, and it adversely affects the industry. We cannot charge extra to the client since the price is already fixed months ago, Hegde noted, mentioning ongoing discussions with the DK Catering Owners’ Association to curb this development.
A former President of DK Catering Owners’ Association and caterer Rajgopal Rai highlighted that amongst their 250 registered members, an equal number operate without registration or structure. We pay taxes, they don’t. As a result of so many caterers in a small market like this, competition makes it difficult to sustain. On top of that, the seasonal increase in raw materials is another threat to us, he said.
