AS the prices of various food items increase, bakeries are also being challenged with their pricing structure, but this is not just related to raw materials for the baking process.
Two bakeries — Puff n Stuff in San Fernando and Chee Mooke bakery in Port of Spain – said they will try to absorb price shocks for as long as possible.
Both said they understood the economic challenges their customers faced and realise they cannot be greedy with their prices at this time.
Already Linda’s bakery has increased its prices on some items by 50 cents-$1, owing to the impacts of the covid19 pandemic such as increased costs in imports, freight, production, maintenance of machinery and other labour outputs.
Puff n Stuff owner Gregory Laing said he too has been experiencing price rises in other materials: most items rose between ten and 20 per cent.
[caption id="attachment_899710" align="alignnone" width="1024"] Ruth Phillip places sliced bread on a shelf at Linda’s Bakery in San Fernando. Linda’s raised the prices on some of its baked goods owing to the higher cost of raw materials. - Photo by Ayanna Kinsale[/caption]
“Over the past year not only have raw materials gone up in food items, but office supplies, packaging, security, gloves, maintenance, through chemical usage and extra staff needed to control customers, and additional maintenance staff needed to continually sanitise the production areas incurred heavy increases.
But, Laing told Business Day. “We are committed to holding our prices unchanged till September 30. After which we may increase certain items that have been affected.”
He said the profit margin on all the company's products has been in constant decline, and it was starting to see a strain on the business. And while the latest covid19 health regulations worked in his favour, where customer volumes increased, Laing said it still was not enough to meet the demands for increasing raw materials daily.
“We do have greater flow of clients presently, and that has allowed us to hold our prices for the time being."
But, he said, "The number of customers that we presently have would return to normal in about three months, but I do not think the prices on our raw materials would.
“While some of our suppliers have not increased prices yet, they have indicated that increases were forthcoming in the last quarter of the year.”
Staff were not laid off at Puff n Stuff: instead, Laing said, the company implemented a shift system to reduce the number of people at the various workstations. He said this was done to ensure covid19 health regulations were observed and the workers were able to earn a salary during the pandemic.
[caption id="attachment_899709" align="alignnone" width="1024"] Savita Khadoo bags tuna puffs for sale at Puff N Stuff in San Fernando. Increasing prices for packaging is among the higher costs bakeries are absorbing to keep prices stable. PHOTOS BY AYANNA KINSALE - Photo by Ayanna Kinsale[/caption]
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