Latest News:  
Beijing   Overcast/Thundershower    27 / 20 ℃  City Forecast

English>>China Business

Catering firms call for policy support

By Chen Yang (Global Times)

09:07, August 14, 2012

A total of 25 catering companies in Haikou, capital of Hainan Province, have lobbied for policy support from the government as their profit margins have been squeezed by rising costs and decreasing revenues this year, a local industry association said Monday.

"We received a jointly signed letter from 25 catering companies, calling for local authorities to cancel the imposition of a new price adjustment fund on the catering industry," a staff member surnamed Chen at the Hainan Provincial Association for Beverages, Hotels and Food told the Global Times.

Local catering companies have been engulfed by rising operational costs, decreasing revenues and a heavy tax burden, according to Chen.

The fund, which accounts for 1 percent of the catering companies' revenue, will add an extra burden for them, Chen said.

In the first half of 2012, catering companies' labor costs rose by 25 percent year-on-year; raw material costs grew by 23-25 percent; and revenues dropped by 25 percent, the association said, based on a survey of 50 catering companies in South China's Hainan Province.

Local catering companies need to pay around 30 kinds of tax and administrative fees, accounting for nearly 20 percent of their total revenue, according to the association, and some of the companies have to transfer part of their operational costs to consumers.

In February, several seafood restaurants in Sanya, Hainan Province were exposed by the media for selling seafood to tourists at ludicrously inflated prices during Spring Festival holiday.

After that, local authorities punished those restaurants for defrauding customers and strengthened supervision of the catering industry.

【1】 【2】



News we recommend:
Has the bear outstayed his welcome? Steel profits continue to suffer China has entered an era of low consumer prices
Firms should watch out for Internet threats China's property market to cool down: experts Why have people lost trust in data and indices?
US takes trade remedy actions against China  Chinese prefer foreign brands Mascot maker feels pinch of rising labor costs

Email|Print|Comments(Editor:李倩、厉振羽)

Leave your comment0 comments

  1. Name

  

Selections for you


  1. Frontier defense company in training

  2. Tragic moments all around the world

  3. World trade faces downside risks

  4. Award-winning inkstick designer in E China

  5. Cruel! Polar bear eats cub

  6. Tang Wei models for jewelry designed by herself

Most Popular

Opinions

  1. Asian slowdown leaves Europe pondering
  2. Be wary of Japan’s radical acts on Diaoyu
  3. Editorial: Stable but slower growth
  4. Firms should watch out for Internet threats
  5. Why have people lost trust in data and indices?
  6. Money chase likely to continue in U.S. eletions
  7. Real estate rebounds as buyers return
  8. Editorial: Outbound investment risks
  9. Don’t be overwhelmed by domestic issues
  10. US pushes China to get serious about sanctions

What's happening in China

Watsons pulls 'deadly' facial masks off shelf

  1. Chinese warship wraps up first visit to Bulgaria
  2. Robbery suspect was 'quiet, well-behaved'
  3. Ancient villages welcome investors
  4. Fugitive gunman kills police officer in SW China
  5. 6.2-magnitude quake hits Xinjiang

China Features

  1. Boxing in China II: A Tale of Two Decades
  2. Fortune 500 Chinese companies not strong
  3. Why Hollywood favores China's actresses?
  4. Dongfeng Honda to recall 76,000 CR-Vs
  5. How to protect yourself during heavy rainstorms?

PD Online Data

  1. Spring Festival
  2. Chinese ethnic odyssey
  3. Yangge in Shaanxi
  4. Gaoqiao in Northern China
  5. The drum dance in Ansai