OPINION
DAILY CHALLENGES We have been suffering price increases on products and packaging since the end of last year and this makes managing a business very difficult. In fact, shortages of products and volatile prices have been simmering since the start of the Covid-19 crisis. There is no way to exclude yourself from this crisis - whether that be by brain or physical power! - and unfortunately the result is a price increase to the customers. For example, I invested a lot of time working on an expansion of our menu that excluded the use of flour, cheese and packaging, as they were our initial casualties of price increases, but the cost price of ingredients since February has risen by 150% at best case and 300% at worst. This means that even our proactive work undertaken to survive the rising costs is futile, as every section of every market is being affected. 38
The subject of food and ingredients price rises is a very topical subject right now, and unfortunately not a new one, reflects Katy Habibian of London-based Village Pizza. Restrictions to sales is costing us as businesses more time which equates to more money also. We have a history going back years with our suppliers and wholesalers, where we purchase, for example, six drums of oil a week, and now we can’t, in turn meaning that we have to keep taking time out of our business to shop multiple times a week. And, whilst the queues for entry into shops are no longer there, we frequently find shelves empty and rampages for products. JUGGLING ACT Over the last few months with the rise in costs, including the minimum wage and the National Insurance increase and VAT rise, a lot of stores are managing their staff costs by owners back to being
on shift, which is very difficult when daily trips are having to be made to wholesalers as well. The increases in pricing means that a task that previously could be carried out quarterly - such as profit and loss, product profitability and availability - is now almost a daily task, or at least needs to be. When ordering products online or by telephone, there is a big warning stating that prices may increase at the point of collection or delivery. This means that we place an order for delivery to the value of £1100.00 on a Friday, but by the time a delivery arrives on a Monday, the cost of the delivery is £1400.00. Similarly with same day collections too. It is a worry when same day costs are increasing, or pre-ordered ‘already in stock’ www.pizzapastamagazine.co.uk
