Big problems for small eateries

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Follow us:WhatsappFacebookTwitterTelegram.cls-1{fill:#4d4d4d;}.cls-2{fill:#fff;}Google NewsVenkatesh started his small eatery in a crowded street in Mylapore 15 years ago. As the fast food boom gripped the city, he expanded his shop and added a few more cuisines and finally converted it into a full-fledged Parotta Kadai, serving the bread that has now become a favourite night time meal.However, the booming business for many in the city has now slumped owing to an array of factors, including non-availability of skilled labour and rise in the cost of wages and inputs. Such factors have already taken their toll on several such small eateries in the city. As a result, the owners are moving to other businesses to avoid losses.According to them, in areas like Egmore, Mylapore, Anna Nagar and Nungambakkam, there has been a severe shortage of skilled masters who can man the kitchen in these small outlets.The shortage, largely because of other lucrative job opportunities in bigger restaurants, has led to the wages for skilled men spiralling, eating into the profits of the outlets.Vendhan, the owner of Sakthi Fast Food in Egmore, says, experienced ‘parotta masters’ now demand as much as Rs 1200 per day as wages. He shows an entry in his diary where only two years ago, the wage rate was as low as Rs 550 per day for the same person.“Many of them have migrated to bigger restaurants. Youngsters do not want to take up jobs in the kitchen. We are finding it extremely difficult to find men for the work,” he says.On many days, the owners of the shops are forced to man the stove as well. However, the increase in labour cost is only the tip of the iceberg for these owners as the cost of raw materials is perhaps a bigger problem.The owners say the rent they pay for the shops has also increased, putting their business in total danger.Mohammad Kizar, who runs an eatery on Big Street in Triplicane, says that prices of rice, wheat and maida have touched unprecedented heights over the last two years. This, he says, has made him face a loss in the business. “My profit margin has dropped from the 40 per cent I used to make a decade ago, to just about 10 per cent. On many days, I end up making losses. I now have a debt of Rs 4 lakh,” he says.first published:August 29, 2012, 08:04 ISTlast updated:August 29, 2012, 08:04 IST
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Venkatesh started his small eatery in a crowded street in Mylapore 15 years ago. As the fast food boom gripped the city, he expanded his shop and added a few more cuisines and finally converted it into a full-fledged Parotta Kadai, serving the bread that has now become a favourite night time meal.

However, the booming business for many in the city has now slumped owing to an array of factors, including non-availability of skilled labour and rise in the cost of wages and inputs. Such factors have already taken their toll on several such small eateries in the city. As a result, the owners are moving to other businesses to avoid losses.

According to them, in areas like Egmore, Mylapore, Anna Nagar and Nungambakkam, there has been a severe shortage of skilled masters who can man the kitchen in these small outlets.

The shortage, largely because of other lucrative job opportunities in bigger restaurants, has led to the wages for skilled men spiralling, eating into the profits of the outlets.

Vendhan, the owner of Sakthi Fast Food in Egmore, says, experienced ‘parotta masters’ now demand as much as Rs 1200 per day as wages. He shows an entry in his diary where only two years ago, the wage rate was as low as Rs 550 per day for the same person.

“Many of them have migrated to bigger restaurants. Youngsters do not want to take up jobs in the kitchen. We are finding it extremely difficult to find men for the work,” he says.

On many days, the owners of the shops are forced to man the stove as well. However, the increase in labour cost is only the tip of the iceberg for these owners as the cost of raw materials is perhaps a bigger problem.

The owners say the rent they pay for the shops has also increased, putting their business in total danger.

Mohammad Kizar, who runs an eatery on Big Street in Triplicane, says that prices of rice, wheat and maida have touched unprecedented heights over the last two years. This, he says, has made him face a loss in the business. “My profit margin has dropped from the 40 per cent I used to make a decade ago, to just about 10 per cent. On many days, I end up making losses. I now have a debt of Rs 4 lakh,” he says.