Buzo boss to tackle import, customs duty restrictions
PROPRIETOR of the New Kingston-based Buzo Osteria Italiana, Trinidadian Peter George said he is facing difficulties sourcing speciality meats to prepare the restaurant’s signature northern Italian-style dishes because of bans on pork imports and duties on certain cuts of beef.
George, who opened Buzo Osteria Italiana earlier this month after a three-year delay caused by travel restrictions associated with the COVID-19 pandemic and supply chain disruptions, shared with the Jamaica Observer, “These aren’t only cost prohibitive; they are actually supply prohibitive. We can’t import pork [into Jamaica] and that’s something I’m going to try as respectfully as I can to address because we’re an Italian restaurant [and] we don’t have prosciutto. You know it’s a significant challenge to us.”
Prosciutto crudo, which is normally shortened as prosciutto in English, is Italian uncooked, unsmoked, and dry-cured ham.
George outlined that the cost is one thing “because you can always overcome that if you price it and the market likes it or buys it; if not you just pivot, you change the item. But it’s the supply restrictiveness is where the challenges are.”
While he understands that the ban on pork imports has helped to protect the financial interest of local pig farmers, George contends that importing pork by-products such as prosciutto, pancetta and mortadella will not create any fallout since there are no local suppliers of these products.
As such, he argues further that such products should be exempt from any import ban, which, he said, hampers businesses without any benefit to the local pork industry. Instead, he said the ban acts as a disincentive to investment and innovation.
Commenting on special cuts of beef, George notes that while the restaurant has found some sources for providing the products, it also faces “exorbitant taxes on imported beef”.
“Again I understand protecting local industry but, you know, when you have a tax in some instances well north of 80 per cent, it becomes a disincentive. Right? And again, I can’t have a restaurant without steak,” he explained to Caribbean Business Report.
The proprietor operates eight restaurants across three Caribbean countries under the Trotters Restaurant Group. Having invested over US$2 million in construction and décor of “what we consider to be a first-class restaurant, George pointed out that Buzo has a reputation to live up to and that people will expect a “standard” quality product.
With this in mind, he hopes to lobby the authorities to address the import and cost restrictions on inputs he uses over a three- to four-month period. In fact, he disclosed plans to speak with Minister of Finance and the Public Service Dr Nigel Clarke and Minister of Industry, Investment and Commerce Senator Aubyn Hill — both of whom attended the grand opening of the restaurant on March 7 — about the challenges.
“So the authorities have to find the right balance between a level of protectionism that is required but also allowing the innovation to say, ‘okay, I want to come and produce it’.”
At the same time, he noted that if international players can produce such special meat cuts and by-products at a cheaper cost due to their scale, then the authorities should consider removing import bans and high customs duties on a select few.
Having faced and overcome similar challenges in Barbados and Trinidad and Tobago, where George operates other Buzo-branded restaurants, the businessman believes that he can find similar solutions in Jamaica. However, resolving the cost and import restrictions will require dialogue with Government, openness and equity.
Moreover, he highlighted that Jamaica has developed a reputation regionally for having collaborations between Government and businesses.
“So don’t open the market completely, but through dialogue the Government has to be nimble about it… And I think with dialogue we can get to a point where you strike a perfect balance [between] the potential quality imports and protecting a local market,” George asserted.
At the same time, he questioned why the authorities would allow hotels to enjoy exemptions from some import bans and customs duties but not extend the same privileges to restaurants which fall in the same hospitality industry.
“I’m not saying give the restaurants the same benefits under the same omnibus Act that hotels have, but there can be something [so] that restaurants don’t feel marginalised,” he stated.
Offering a consumer’s perspective, George noted, “If I’m going out I would not go to the restaurant, I would go to a hotel because it is cheaper…they can afford the good stuff and they don’t pay duty. And that goes back to the question about disincentives to opening a business.”
With regard to costs that restaurants face, the businessman dispelled the notion that restaurants had minimal expenses relating to décor, furniture and supplies. He pointed to expenses relating to training, overseas and local transportation of staff, and accommodation that the business incurred in preparation for the opening.
“You know, the one mistake that people think of restaurants is… tables, chairs or knives and forks, and that’s it. You will have heard that there are so many things that happen in a restaurant, and it’s called the restaurant business for a reason,” pointing out that it’s no different from any larger established company.
“We still have to deal with legal stuff — we deal with licences; we deal with importation customs; utilities; making sure you comply with health with regard to fire suppression — you know, all of those stuff,” he added.