A GROUP of Bahraini restaurant owners has demanded an investigation into claims of a sharp increase in the price of raw materials.
The 120-member group alleged that there has been an increase of almost 30 per cent in the price of products such as vegetables, fruits and poultry.
They urged Industry, Commerce and Tourism Ministry officials to probe the reasons behind the increase in prices which was hitting them hard.
Krunchies owner Ali Al Shehabi told the GDN that the suppliers have not given any specific reason for the increase, blaming it on the mounting logistics costs.
“We want the ministry to investigate this increase in prices; even if it is about logistics, is there no rule that governs price increase in the country?” he asked.
“Will the prices be lowered if things in the logistics sector get better? We want the ministry to help us.”
Citing an example, Mr Al Shehabi said that fresh chicken which costs BD10.5 for a carton of 10kg went up to almost BD14.
“This was done without any notice and all of us – 120 Bahrainis who run small to medium restaurants across the country – are demanding the government address our concerns.”
The 33-year-old, who runs his restaurant in Budaiya, said that he has not paid rent for one year as his business was hit by the pandemic.
He added that restaurateurs like him were finding it hard to make ends meet, even after the country adopting the green level – the lowest alert level under the Covid-19 Alert Level Traffic Light System.
“We are not high-end restaurants and our customers are also from the average public,” he said.
“Our profit margin is very low and we have all other business overheads to meet and our staff, mainly Bahrainis, are sole earning members of their families, they have to be paid.
“We are struggling to meet these requirements; if this continues we fear we may have to close down our businesses.”
The government should monitor the market prices, said Jameel Yusuf Radhi, who owns Sahel Al Reef Restaurant.
The 46-year-old who runs four branches in Hamad Town, Malkiya and Sanad pointed out that the price of corn oil doubled from BD9 to BD18 for eight litres, while vegetable oil went up from BD5 to BD15.
“The suppliers are manipulating the prices and there are no checks which is frustrating.
“They are even increasing the price of old stock and sadly we did not face such a situation even at the peak of Covid-19.
“Some businesses are on the verge of closing down and some are not making any profit.”
Expat businesses have also been hit, observed Al Reef Panasia director Munees Faizal.
The 39-year-old Indian restaurateur also complained of a price increase.
“We have been facing a 20-30pc price increase on raw materials over the past two months,” he said.
“We cannot increase our menu prices which are currently affordable to our customers; revising them would upset the business.”
The price of a box of cauliflower (10kg) went up to BD5 from BD3.5, while onions and tomatoes cost around 200 fils per kilo, said Mr Faizal.
“One reason given to us by the suppliers is the infection hitting production units in supplying countries which is something we cannot help but we have to address the issue locally, otherwise smaller businesses will not survive.”
The GDN reported last week about an increase in the price of Saudi dairy products which Bahrain Chamber of Commerce and Industry resources and food committee chairman Khalid Al Ameen attributed to a 100pc increase in the cost of shipment, logistics and petrol.
He had also added that there was around a 130pc increase in the cost of raw materials coming from China.
A comment from the Industry, Commerce and Tourism Ministry is awaited.
raji@gdn.com.bh
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