Byo parking: Simbisa Brands lose 30 percent revenue

24 Mar, 2022 - 08:03 0 Views
Byo parking: Simbisa Brands lose 30 percent revenue

The Sunday News

 Rutendo Nyeve, Sunday News Correspondent

THE loss of revenue by businesses in Bulawayo’s Central Business district due to the recently introduced vehicle parking management system, has already seen one of the country’s biggest fast-food brands claiming they have lost revenue amounting to close 30 percent.

Bulawayo City Council working in partnership with Tendy Three Investments, in February introduced the parking management system which was met with a public outcry with residents and the business community accusing the local authority of not holding adequate consultations before its implementation.

This saw motorists largely boycotting parking bays that had the system resulting in the local authority last week slashing the parking fees to US$1 for an hour for the entire city.

Previously, there were prime parking bays that were pegged at US$1 for 30 minutes and the ordinary parking was going for US$1 for 1 hour.

Simbisa Brands has since been the first major stock exchange listed company to raise a red flag over the parking system, with the company’s Managing Director, Mr Warren Meares revealing that six of their outlets located along Jason Moyo, between 8th Avenue and Leopold Takawira have already experienced 25 to 30 percent revenue loss.

He bemoaned lack of consultation by the local authority with the business community prior to the implementation of the system.

“Our main worry is that no consultation was done with business as we just saw the units being installed. What was more alarming was the US$1 per hour which entirely became detrimental to our business as we have lost between 25 to 30 percent of revenue in our outlets located along J. Moyo between 8th and L. Takawira,” said Mr Meares.

Outlets under the company, which are located in the said zones are Nandos, Steers, Chicken Inn, Pizza Inn, Bakers Inn and Creamy Inn.

He said while he was glad the rates had been reduced; they were appealing that the local authority reduces them further to at least US$0.50 per hour.

“I’m glad the rates have been relooked at but I feel like US$0.50 per hour is more reasonable as an introductory fee. If I’m coming for a meal, I now have to add an extra dollar on top of my meal price which becomes detrimental to our business and affects prospective expansion plans for the city,” said Mr Meares.

The ruling party’s Zanu PF Bulawayo Provincial Secretary for Business Development and Liason department Cde Brian Samuriwo has also added a voice, describing the system as a hindrance to business development.

“We made a survey and interviews were made in the Bulawayo CBD. The business community observed that their sales dropped by 60 percent in their daily activities soon after the city council approved and allowed a private company to operate in the parking spaces which is charging high prices.

“Despite the new tariffs, the city council has not been considerate or tackled the business community’s appeal. They should at least charge US$1 for 2 hours, looking at the public’s monthly earnings through the civil servants salaries which should be used as a yard stick,” said Mr Samuriwo.

Mr Samuriwo further observed that so many controversial activities have been implemented by council through the parking bays fee, which are so expensive at a time the lives of people have been made miserable because of high rent and rates which increased by 250%.

“The city council has to implement flexible and friendly rates and rentals policies which are fair to the Bulawayo residents. Roads have remained an eyesore with dilapidated infrastructure becoming the order of the day. This should be their focus instead of treating people unfairly and the confusion which they have created through the introduction of parking bays fees and the increase of rates and rentals,” said Mr Samuriwo.

 

 

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