AS people resume large gatherings and celebrations post-lockdown, caterers’ joy over a boom in business is tempered by the challenge of managing rising costs while meeting client’s expectations.

Demand is good for buffet spreads for weddings, birthdays and launches but caterers told The Malaysian Insight the higher prices of ingredients have led to shortages.

Some said costs have increased 20-60% that they have opted not to pass the burden onto their customers for fear of losing business.

Helimen Catering Service owner Ng Sheau Kang said he has raised his prices around 10% even though costs have risen up to 40%..

“Competition in the food catering sector is stiff.

“I am hoping to retain customers, have quicker turnovers although profits are smaller,” Ng said.

Like many other sectors, the catering business is also facing a labour shortage. Ng has had to raise wages to keep his workers.

“But my biggest headache is the shortage of ingredients. We have to source from other states. We cannot tell the customer, sorry, we’re out of stock. When some ingredients run out, we have to replace them with other items.

“If there is absolutely no supply, we will tell customers the problem and give them a discount.”

Ng said instead of adjusting the price of his buffets, he would cut the number of dishes in the spread to deal with rising costs..

James Teo, who runs the Johor-based Rabbit Home Catering & Pack Food, said costs have risen 40-60%.

He has received a steady steam of bookings for weddings, store openings and birthdays since the economy reopened in April.

“People choose buffets because they want to save money so we cannot raise ours price too much,” he said.

“A banquet in a restaurant costs at least RM1,000 per table, but our buffet options range from as low as RM20 to more than RM100 person. 

Seastar Buffet Catering head Koh Chun Xin said ingredients like chicken, shrimp and duck are increasingly scarce,

He assured his customers of no change in prices if they had already paid him a booking deposit for events to be held later in the year.

“We will absorb the costs,” he said.

Penang the Koo Soo Kwong Choon Tong Restaurant and Tea-house Association chairman Vinah Yee Yook Chee said chefs are challenged to stretch the expensive ingredients in a dish.

“They have to rack their brains to make the dishes more attractive even if certain ingredients are reduced.

“For example, sea cucumber, which is expensive, may be sliced a little thinner, and accompanied by other ingredients that complement the taste. The size of the dish remains the same, but the cost is slightly reduced.” – July 23, 2022.