RESTAURANTS Associates Limited, which operates fast food franchise Burger King and Popeyes Jamaica, is proposing that the Government of Jamaica consider reducing customs charges on some input items as the chain battles with higher costs.

Sabrena McDonald Radcliffe, head of QSR Sales and Marketing and group corporate communications director, told the Jamaica Observer last week on the impact of inflation on the chain, “The Government should strongly evaluate the relaxation of import tariffs and restrictions specifically, and the cost of doing business generally by limiting red tape.”

She was proposing this as a means of reducing the current inflationary pressure being felt.

She pointed out, “[The] current level of duties, which exceeds 250 per cent on some products, needs to be re-evaluated against whether true value-added is being created through local production.”

At last update, Restaurant Associates, owned by the Lake family, operated 28 stores islandwide and employed over 1,000 workers.

The company has been employing several strategies to keep customers coming back despite rising prices in the last year-and-a half.

One strategy uses a “two-for” offer, which provides two meals for one price, which Radcliffe says is a client favourite.

Asked if any store was seeing a fall-off in sales, the sales manager only commented, “Our stores have been making gradual progress as the country tries to figure out how to live with COVID-19.

“Like the rest of the country, we are trying to find the best way to manage the frequent and extensive increases in input prices, such as proteins (beef, chicken and pork), beverages, paper products, flour and wheat. Our approach has always been to find the best intersection of value to our customers and business health.”

According to the Statistical Institute of Jamaica (Statin), the Consumer Price Index rose 10 basis points to 117.0 in December 2021, up from 116.0 recorded in November.

December’s upward movement was largely influenced by a 4.7 per cent increase in the index for the division ‘Housing, Water, Electricity, Gas and Other Fuels’. Increased electricity, water and sewerage rates were the main factors contributing. While meats have been rising in price, there was improvement in supplies of some agricultural produce, especially tomato, lettuce, cabbage and sweet pepper at the end of 2021.

Radcliffe declined to comment on whether or not the company’s profitability was being negatively affected.

In order to handle rising costs, she said, the company is “exploring various ventures and trying our best to leverage the resources within our network of businesses”.

Burger King is an American multinational chain of hamburger fast food restaurants headquartered in Miami-Dade County, Florida.

In 2010 new owner 3G, along with partner Berkshire Hathaway, merged the company with the Canadian-based doughnut chain Tim Hortons, under the auspices of a new Canadian-based parent company named Restaurant Brands International.

Other brands owned include Popeyes. Internationally, the Burger King brand is doing good business in multiple markets.

Restaurant Brands International last released its quarterly earnings data in October 2021 reporting revenue of US$1.50 billion for the quarter, up 11.8 per cent on a year-over-year basis.

Restaurant Brands will release its full-year and fourth-quarter 2021 financial results on Tuesday, February 15, 2022.