LPG price surge squeezes small eateries

The margins of small neighborhood eateries are being squeezed by rising liquefied petroleum gas (LPG) prices, with operators warning that they may eventually have to raise meal prices, reduce servings, or cut the number of dishes they offer.

Joan Hipolito, president of the Philippine Association of Stores and Carinderia Owners Inc. (PASCO), said small eateries were already absorbing increases in the cost of LPG, agricultural products, and other supplies to keep meals affordable for their customers.

But she said operators were running out of ways to cut costs without hurting their businesses or the customers who depend on them for inexpensive meals.

“We no longer know what else we can do,” Hipolito said in an interview Monday morning on DZBB TV.

She said raising prices could drive customers away, while keeping prices unchanged could force operators to reduce serving sizes or the variety of dishes they offer.

Some operators have already reduced the number of dishes they prepare as the cost of ingredients and other operating expenses continues to rise, she said.

She cited one operator whose daily purchases of supplies had increased from about P2,000 to nearly P4,000.

Hipolito said some small eateries were also turning to firewood for certain cooking processes, particularly for boiling meat and other ingredients before transferring them to LPG-fueled stoves.

But alternatives such as charcoal are also becoming more expensive.

“Even charcoal is already expensive,” Hipolito said, noting that charcoal that previously cost around P7 to P10 now sells for about P25.

LPG remains difficult to replace because it is the main cooking fuel used by small eateries, she said.

Hipolito said the rising costs were particularly worrying because their customers include construction workers, office employees, drivers, and other workers who rely on small eateries for affordable meals.

She said operators were reluctant to raise prices because they understood that their customers were also struggling with higher living costs.

“We are also thinking about our customers because we want them to be able to eat properly, while we also need to earn a living,” she said.

The rising cost of ingredients has added to the pressure.

Hipolito said operators sometimes receive discounts from regular suppliers of meat, vegetables, and chicken, but suppliers also face higher transportation and production costs.

She said vegetable prices, in particular, could be difficult to negotiate because some produce comes from areas far from Metro Manila.

Hipolito appealed to President Ferdinand Marcos Jr. to extend assistance to small eateries, saying the sector had yet to receive comparable support despite serving communities with affordable food.

She said even targeted assistance for LPG could provide significant relief to operators.

PASCO, she added, maintains lists of legitimate small eateries and micro-retail operators that could be considered for government assistance.

Hipolito said government support would help small eateries continue providing inexpensive meals while keeping their businesses viable and supporting their families.

She said the sector was effectively serving as an affordable food source for many workers and other consumers, making the impact of higher LPG prices broader than the businesses themselves.

PASCO will hold its Micro Retail Convention on Nov. 19 with the theme “Keep It Safe, Keep It Fair, Keep It Growing,” aimed at providing micro-retailers and small eatery operators with additional knowledge, business connections, and opportunities to strengthen and expand their businesses.