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Catering industrialists stated that companies operating in the ready-to-eat food sector have become unprofitable due to the difference between general inflation and food inflation.
Bursa Catering Industrialists Association (BUYSAD) announced the cookware inflation in July. Association Chairperson Coşkun Dönmez said that food prices increased by 3.18 percent in July, thus the 7-month spike in food reached 20.18 percent.
Pointing out that companies operating in the ready-to-eat catering sector have become unprofitable due to the difference between general inflation and food inflation, Dönmez said, “This will not stop there. We began to fear the onset of bankruptcies. The constant increase in raw material prices in our industry, which operates with low profits, is not a sustainable situation. Now we have to make price updates in shorter timeframes.”
“We are unable to keep up with the price increases”
Drawing attention to the negative effects of the continuous increase in food prices in the ready-to-eat food sector, Dönmez emphasized that the profit margin in catering sector, of which the main raw material is food, declined to 6 percent. Stating that this situation is not sustainable, Dönmez complained, “We are unable to keep up with the price increases.”
“Some of our customers are aware that general inflation and food inflation do not coincide and they are generally understanding. However, some companies want to take advantage of the competitive weakness of our sector and buy food at a fixed price. This drags businesses in the ready-made food industry to unprofitability and even to the brink of bankruptcy,” Dönmez added.
