Carinderias hike prices, mull smaller servings as costs rise

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MANILA, Philippines — Small neighborhood eateries or carinderias have long been a lifeline for students, workers and families seeking affordable, quality home-cooked meals.

But as the conflict in the Middle East prolongs, carinderia owners like Laila Capilar found themselves sandwiched between spiking commodity prices and more expensive liquefied petroleum gas (LPG).

Capilar’s daily income has been struggling to keep up with the operational costs that have been rising every day since the US and Israel attacked Iran more than a month ago.

For one, vegetable prices like carrots alone have doubled in the past month. On top of that, 11-kilo LPG tanks have gone above P1,200 from the previous P830.

Before, she was able to buy carrots, a key ingredient in several of their staple menu items, for as low as P80 per kilo. Now, they have nearly doubled in price.

Meanwhile, meat prices such as pork belly have gone up as well. Last month, pork belly averaged P380 per kilo, now it costs P390, based on Department of Agriculture data.

A serving of meat dishes at Capilar’s eatery used to cost P60 while its vegetable dishes were priced at P30. Capilar has been delaying any price adjustments as long as she is not losing profit.

But today, her prices have gone up by P10.

“We do not compromise on the quality of our food. If we reduce the portion of our servings, our customers, especially the students, will complain,” Capilar, owner of Enrico’s Eatery located in the University Belt, told The STAR.

“It will be better for us to increase our prices. I think our customers, who are mostly students, will understand our situation since they are aware of what is happening globally,” she added.

Just two doors away from Enrico’s is J. Allen’s Eatery, another place that University Belt students and working individuals flock to for a wide variety of filling yet low-cost meals.

A typical full order at the family-run establishment ranges to P92 from P62. But like their neighboring eatery, a price adjustment was on the table.

“We have not yet talked about it, but it is probable that if our costs continue to increase, we will have no choice but to increase our prices,” said Janine Espinosa, the eatery’s manager, in an interview in March. When April came, the eatery’s prices rose by at least P3.

J. Allen’s eatery may also consider reducing their serving sizes, like what they did after the pandemic, Espinosa said.

Economist Bruce Ivan De Guzman said that the effects of sustained oil price hikes driven by the Iran war would trickle down to small businesses like carinderias as increases in the cost of transporting goods and commodities are passed on.

De Guzman added that carinderias may lose some of their customers once they increase their prices to a point that is quite comparable to quick service restaurants.

“If carinderia prices have risen to the point where they are comparable to fast-food [chain] prices, a regular carinderia customer might make a rational decision to opt for fast food instead,” De Guzman, an economics professor at University of Santo Tomas, said.

For consumers like Chloe Landingin, who frequents eateries like J. Allen’s, price adjustments in carinderias may influence her decision on where and what to eat.

“Since I have a PWD discount, I might prefer to eat at fast-food [chains] in the meantime if I will be able to save more there than in carinderias. Plus, they have meal deals as well,” said Landingin, 23.

Gabriel Oliveros, a loyal customer of Enrico’s Eatery, said that a P10 price increase may force him to look for alternatives.

“It’s hard to maintain loyalty for a business when prices increase, even if you are already close with the owners and workers. At this point, every peso counts and should not be spent aimlessly,” Oliveros, 22, said.

Reyza Bianca Ferranco and Mei Lin Weng are both senior journalism students at the University of Santo Tomas. This story was produced for their agricultural journalism elective class.