whitewash and output
18 February 2022 0 comments
The introduction of a food labeling system is approaching catering, restaurateurs are sounding the alarm – the innovation threatens a significant increase in costs. Experts explained why they believe that labeling will create such difficulties that will eventually paralyze business, and this will affect both large networks and the small and medium-sized business sector.
The restaurant business continues to make attempts to prevent the introduction of a labeling system for certain categories of food for catering. "Honest Sign" is the largest labeling and tracking system of goods in Russia, fur coats, shoes, light industry goods, tobacco products, medicines, perfumes, dairy products, tires and other goods are already subject to mandatory labeling.
By 2024, most of the goods produced in Russia and imported into Russia should be marked with Data Matrix codes of the Honest Sign system. However, the business community does not understand how restaurants got into the program.
Even now, restaurateurs must check at acceptance whether the labeling is applied to mineral water and dairy products, ice cream and cheeses, from March 1 — to all other categories of water, from March 31 - to reflect through the cash registers the retirement of dairy products with a shelf life of less than 40 days, and from June 1 - more than 40 days.
"The introduction of the labeling system should not affect the catering," says Anastasia Tatulova, business ombudsman, owner of the Anderson cafe chain. - because under no circumstances should it be implemented for the service industries. The service industries are the same consumer in this case as an individual. Restaurants don't buy milk to resell, they buy it to add to coffee or milkshake. It's absolute nonsense that the industry got into this project at all."
Over the next two years, a large-scale labeling program will become a new reality for the business community, Moscow Business Ombudsman Tatyana Mineeva notes, while the requirements are being tightened, and their number is growing rapidly.
"Why was the Honest Mark product labeling system started," the expert asks, "so that consumers would not receive substandard and counterfeit products. But business is talking about the costs that this innovation brings."
If earlier it seemed that the innovation would affect a very limited range of goods (fur coats or shoes), Tatiana Mineeva continues, now dairy products have already been added as an experiment, low-alcohol drinks are next in line. And this means that the entire sphere of catering will fall under the changes.
Costs and penalties
The introduction of labeling entails additional costs for business, explains Anastasia Tatulova. We are talking about additional staff, as well as the likelihood of large fines in case of errors.
"Salary costs will increase, it is necessary to hire storekeepers who will have to keep this record every day," Anastasia Tatulova continues– "there are no such positions in small cafes, and accounting is carried out by an outsourced accountant."
Another additional item of expenditure is the threat of a fine of 300 thousand rubles, even in case of a slight deviation from the rules for using the labeling system. In particular, penalties will be applied to businesses in the case of incorrectly scanned code, criminal liability is also provided for such an error.
"And traditionally, as in the case of wearing masks," the Ombudsman recalls, "this responsibility does not concern the one who violated, but concerns the owner of the enterprise. How he can prevent this, the authors of the law do not care."
The honest answer of the "Honest Sign"
At the same time, the Center for the Development of Advanced Technologies (CRPT), which is the operator of the Honest Sign labeling system, claims that the innovation is necessary primarily for the restaurateurs themselves - ostensibly to ensure protection from substandard products. In addition, they promise that the introduction of labeling will not create additional difficulties.
"Catering enterprises only need to accept labeled products according to EDO (electronic document management) and write it off–" the CRPT said in a statement. – These are simple actions that do not require any additional personnel, equipment, or programs. Small businesses can use free labeling services — personal account, EDO.Lite and a mobile application that replaces the scanner "Honest Sign. Business".
The operator of the marking system also declares that he is in constant dialogue with the business community, and tries to create comfortable conditions for the implementation of the project.
The market will be empty
According to Sergey Mironov, vice-president of the Federation of Restaurateurs and Hoteliers of Russia, founder of the Meat & Fish restaurant, labeling in the restaurant business will lead to disaster. Microbusiness, small businesses and restaurant chains will be completely destroyed. After the frenzied fines and criminal cases, the market will be empty. Cooks will have to accept goods only with codes, enter everything into the appropriate systems. At the same time, in case of re-sorting or violation of packaging, products cannot be accepted — you need to completely change the invoice. And this paralyzes the business.
Anastasia Tatulova also agrees with her colleague, arguing that most small businesses will not be able to comply with the new requirements, this will lead to going into the shadows and purchasing products for cash in stores, bypassing labeling, and larger players will put costs and risks into the final cost of meals. For the consumer, this will result in another price increase.
"It's just mind-boggling how this can be implemented in relation to milk, pencils or plasticine," laments the restaurateur– "These are not fur coats or diamonds. In such goods there is no risk of forgery and counterfeit in principle. And control should be carried out at the level of the manufacturer or, in the case of imports, the distributor."
Guests will pay for the marking
Sergey Mironov in the fall of 2021 stated that for objective reasons, prices on the menus of Russian restaurants have increased by more than 10% in six months. The restaurateur also supported the point of view that catering is essentially also the end consumers – labeled products are not bought for resale, but for the preparation of their own finished product.
"In other words, water is poured into glasses, cheese is cut, milk and butter are used in cooking, etc. Thus, the marked products should be withdrawn from circulation by the turnover participant who sold it to the catering company," he explained.
The question arises whether restaurants will not be forced to label every glass of water served to the guest, and every dish.
"We are waiting until the last moment," says Mikhail Huseynov, co-founder of the chain of coffee shops "Chaynikoff", "remember, there was such a SOUT (this is a set of measures during which the commission for a special assessment of working conditions evaluates and measures factors in the workplace that could potentially cause harm or create a risk to an employee - Ed.), its implementation was also mandatory, we spent money, prepared, and then canceled. So here — we wait until the last and hope that the labeling in the catering will be canceled."
Won 't cancel
In 2017, by order of the Government of the Russian Federation, the Center for the Development of Advanced Technologies (CRPT) was appointed as the operator of the system, 50% of which belongs to the structure of entrepreneur Alisher Usmanov and his partners. Each code, together with the tax, costs the system user 60 kopecks, together with VAT.
The application of the labeling system began in 2016 with fur products, the whole year 2021 was not easy for sellers and manufacturers of light industry products — they introduced labeling with great difficulties, which was even discussed at the All-Russian Congress of commissioners for the protection of the rights of entrepreneurs in Moscow. From June 1, 2021, the labeling of cheeses and ice cream started, from December 2021 - dairy products with a shelf life of less than 40 days.
In 2022, the labeling of bicycle products and packaged water will start - from March 1, from December 1 – dairy products produced by farmers and agricultural cooperatives. The next one is the sphere of beauty.
If labeling is made mandatory for catering establishments, then the innovation will spread to other branches of the service sector, Anastasia Tatulova predicts.
"Then there will be fitness clubs and salons," the ombudsman explains– "because the whole labeling project will finally turn not into what was originally announced - protection against counterfeit, but into another non-tax burden of the entrepreneur."
Whitewash everything
"This is my private opinion," says the director of the Russian representative office of the business association— "most likely, they will not refuse labeling in catering, but time will tell how much the system will be able to take into account all the features of the restaurant business, the movement of the product to be labeled, how much labeling can be adapted to the realities of business. Now we are literally marking everything, scanning, displaying, whitewashing. This is a general trend. It is hardly necessary to expect that they will refuse this. Especially for milk. We will whitewash and remove each piece."
The restaurant business continues to make attempts to prevent the introduction of a labeling system for certain categories of food for catering. "Honest Sign" is the largest labeling and tracking system of goods in Russia, fur coats, shoes, light industry goods, tobacco products, medicines, perfumes, dairy products, tires and other goods are already subject to mandatory labeling.
By 2024, most of the goods produced in Russia and imported into Russia should be marked with Data Matrix codes of the Honest Sign system. However, the business community does not understand how restaurants got into the program.
Even now, restaurateurs must check at acceptance whether the labeling is applied to mineral water and dairy products, ice cream and cheeses, from March 1 — to all other categories of water, from March 31 - to reflect through the cash registers the retirement of dairy products with a shelf life of less than 40 days, and from June 1 - more than 40 days.
"The introduction of the labeling system should not affect the catering," says Anastasia Tatulova, business ombudsman, owner of the Anderson cafe chain. - because under no circumstances should it be implemented for the service industries. The service industries are the same consumer in this case as an individual. Restaurants don't buy milk to resell, they buy it to add to coffee or milkshake. It's absolute nonsense that the industry got into this project at all."
Over the next two years, a large-scale labeling program will become a new reality for the business community, Moscow Business Ombudsman Tatyana Mineeva notes, while the requirements are being tightened, and their number is growing rapidly.
"Why was the Honest Mark product labeling system started," the expert asks, "so that consumers would not receive substandard and counterfeit products. But business is talking about the costs that this innovation brings."
If earlier it seemed that the innovation would affect a very limited range of goods (fur coats or shoes), Tatiana Mineeva continues, now dairy products have already been added as an experiment, low-alcohol drinks are next in line. And this means that the entire sphere of catering will fall under the changes.
Costs and penalties
The introduction of labeling entails additional costs for business, explains Anastasia Tatulova. We are talking about additional staff, as well as the likelihood of large fines in case of errors.
"Salary costs will increase, it is necessary to hire storekeepers who will have to keep this record every day," Anastasia Tatulova continues– "there are no such positions in small cafes, and accounting is carried out by an outsourced accountant."
Another additional item of expenditure is the threat of a fine of 300 thousand rubles, even in case of a slight deviation from the rules for using the labeling system. In particular, penalties will be applied to businesses in the case of incorrectly scanned code, criminal liability is also provided for such an error.
"And traditionally, as in the case of wearing masks," the Ombudsman recalls, "this responsibility does not concern the one who violated, but concerns the owner of the enterprise. How he can prevent this, the authors of the law do not care."
The honest answer of the "Honest Sign"
At the same time, the Center for the Development of Advanced Technologies (CRPT), which is the operator of the Honest Sign labeling system, claims that the innovation is necessary primarily for the restaurateurs themselves - ostensibly to ensure protection from substandard products. In addition, they promise that the introduction of labeling will not create additional difficulties.
"Catering enterprises only need to accept labeled products according to EDO (electronic document management) and write it off–" the CRPT said in a statement. – These are simple actions that do not require any additional personnel, equipment, or programs. Small businesses can use free labeling services — personal account, EDO.Lite and a mobile application that replaces the scanner "Honest Sign. Business".
The operator of the marking system also declares that he is in constant dialogue with the business community, and tries to create comfortable conditions for the implementation of the project.
The market will be empty
According to Sergey Mironov, vice-president of the Federation of Restaurateurs and Hoteliers of Russia, founder of the Meat & Fish restaurant, labeling in the restaurant business will lead to disaster. Microbusiness, small businesses and restaurant chains will be completely destroyed. After the frenzied fines and criminal cases, the market will be empty. Cooks will have to accept goods only with codes, enter everything into the appropriate systems. At the same time, in case of re-sorting or violation of packaging, products cannot be accepted — you need to completely change the invoice. And this paralyzes the business.
Anastasia Tatulova also agrees with her colleague, arguing that most small businesses will not be able to comply with the new requirements, this will lead to going into the shadows and purchasing products for cash in stores, bypassing labeling, and larger players will put costs and risks into the final cost of meals. For the consumer, this will result in another price increase.
"It's just mind-boggling how this can be implemented in relation to milk, pencils or plasticine," laments the restaurateur– "These are not fur coats or diamonds. In such goods there is no risk of forgery and counterfeit in principle. And control should be carried out at the level of the manufacturer or, in the case of imports, the distributor."
Guests will pay for the marking
Sergey Mironov in the fall of 2021 stated that for objective reasons, prices on the menus of Russian restaurants have increased by more than 10% in six months. The restaurateur also supported the point of view that catering is essentially also the end consumers – labeled products are not bought for resale, but for the preparation of their own finished product.
"In other words, water is poured into glasses, cheese is cut, milk and butter are used in cooking, etc. Thus, the marked products should be withdrawn from circulation by the turnover participant who sold it to the catering company," he explained.
The question arises whether restaurants will not be forced to label every glass of water served to the guest, and every dish.
"We are waiting until the last moment," says Mikhail Huseynov, co-founder of the chain of coffee shops "Chaynikoff", "remember, there was such a SOUT (this is a set of measures during which the commission for a special assessment of working conditions evaluates and measures factors in the workplace that could potentially cause harm or create a risk to an employee - Ed.), its implementation was also mandatory, we spent money, prepared, and then canceled. So here — we wait until the last and hope that the labeling in the catering will be canceled."
Won 't cancel
In 2017, by order of the Government of the Russian Federation, the Center for the Development of Advanced Technologies (CRPT) was appointed as the operator of the system, 50% of which belongs to the structure of entrepreneur Alisher Usmanov and his partners. Each code, together with the tax, costs the system user 60 kopecks, together with VAT.
The application of the labeling system began in 2016 with fur products, the whole year 2021 was not easy for sellers and manufacturers of light industry products — they introduced labeling with great difficulties, which was even discussed at the All-Russian Congress of commissioners for the protection of the rights of entrepreneurs in Moscow. From June 1, 2021, the labeling of cheeses and ice cream started, from December 2021 - dairy products with a shelf life of less than 40 days.
In 2022, the labeling of bicycle products and packaged water will start - from March 1, from December 1 – dairy products produced by farmers and agricultural cooperatives. The next one is the sphere of beauty.
If labeling is made mandatory for catering establishments, then the innovation will spread to other branches of the service sector, Anastasia Tatulova predicts.
"Then there will be fitness clubs and salons," the ombudsman explains– "because the whole labeling project will finally turn not into what was originally announced - protection against counterfeit, but into another non-tax burden of the entrepreneur."
Whitewash everything
"This is my private opinion," says the director of the Russian representative office of the business association— "most likely, they will not refuse labeling in catering, but time will tell how much the system will be able to take into account all the features of the restaurant business, the movement of the product to be labeled, how much labeling can be adapted to the realities of business. Now we are literally marking everything, scanning, displaying, whitewashing. This is a general trend. It is hardly necessary to expect that they will refuse this. Especially for milk. We will whitewash and remove each piece."