MUTARE- The Mutare city councils liquor outlets are operating at a loss, documents made available to The Zimbabwean indicate. The cash strapped council is making a loss averaging $700, a month from each of the four beerhalls that are underperforming.
The council has at least 17 liquor outlets under its wings and these, according to documents in our possession are poorly performing and now proving to be a liability to Pungwe Breweries, a company belonging to council that is running the entity. According to the report on the underperforming beerhalls, are identified as Rufaro Bar, Dangamvura Bar, Mushando Bar and Nyausunzi Bar. Rufaro, Mushando and Nyausunzi Bars are all in Sakubva high residential suburb.
Statistics for the four bars taken from October to December 2009 show that for the three months the four beerhalls had a combined net loss of nearly US$10 000. In October last year Rufaro and Dangamvura had a total loss of US$800, while Mushando and Nyausunzi recorded their only profit for the year. Nyausunzi had a profit of US$400 and Mushando had US$72 as profit. In November 2009 the four bars had a loss of about US$3 000, combined.
As at December 31 last year Rufaro bar posted a net loss of US$713, Dangamvura US$989, Mushando US$681 while Nyausunzi recorded a loss of US$461. Pungwe Breweries Board chairperson, Exavia Upare said the company was operating below capacity owing to low cash injection. Liquor business is the in thing at the moment and to imagine that our outlets posted losses is a shock. The management systems were poor and are largely to blame for the predicament we find ourselves in, Upare said. He revealed that the management at the Pungwe Breweries are currently working on looking for a partner to help run the outlets profitably. We are hoping to find a partner who will invest in our liquor outlets and get a substantial stake in the business while the council will have a controlling stake in the deal, said Upare.
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