A Malta-based cloud software company has unexpectedly waded into a pertinent discussion on the ongoing rising costs of food, and the effects this is having on its business clients, which have no other choice but to increase their own prices.

Sixteen Limited took to social media to share how over the past weeks, it had numerous clients asking the company to double-check and help them in understanding the real food cost within their operation as they have been constantly seeing the price of stock, such as meats, cheeses, frozen goods and vegetables, going up. The company shared how certain items are more than doubling in price in a matter of weeks.

Taking to social media, Sixteen Limited said:

“When we sat down with them and used data we gathered from software like MarketMan and Lightspeed Commerce, it did turn out that they were right, the problem is really that the food cost has skyrocketed and when taking everything into consideration with great disappointment, they are left with no choice but to increase prices.”

The cloud software company went on to say that there “needs to be a healthy discussion on this topic, as it is going to be clear that the general public will call out on these operators, [accusing them] of taking advantage of the post-COVID situation, but in reality, this is not the case.

“When adding the rent cost (did not change much), employee cost (increased), food cost (increased), aggregator cost (Wolt/Bolt), the bottom line is more and more are edging close to the RED.”

Indeed, statistic after statistic released by Malta’s National Statistics Office has shown food to be a major driver of inflation locally, while a supply chain crisis resulting in big delays have further had an impact.

Worse still, a staffing shortage, the subject of which led the Association of Catering Establishments to host a conference with players from private industry and Government to brainstorm ideas, continues to drive the cost of doing business up for hospitality and catering establishments, with no solution in sight.