peterSharon Chimenya, Masvingo Correspondent
THE Masvingo City Council has started converting its loss-making liquor outlets into strategic business units so that they help generate income and close revenue gaps for the local authority, it has been revealed.
According to the recent minutes of the Finance and General Purposes Committee, the three outlets had a $687 994.45 net loss and the members were recommending that they be turned into income generating activities.
In May, council agreed to lease a portion of Chiwororo Beerhall in Mucheke B to Golden Poultry Association to sell poultry products for a monthly rental of US$150.
“The report of the Director of Housing and Social Services on the Liquor Section for the month of June 2022 covering sales by outlet and challenges experienced was considered. It was reported that the three operating outlets recorded a total net loss of $687 994.45 compared to a net profit of $18 854.87 recorded in May 2022. The loss had been attributed to the increase in employment costs during the period under review.
The members suggested that council should consider converting the liquor outlets into different income generating activities. It was indicated that the idea would be considered by management. The need to establish the Strategic Business Unit of Council to enhance viability of income generating projects was highlighted,” reads part of the report of the Finance and General-Purpose Committee.
The local authority would have joined other liquor outlets in the city that have converted their outlets and rented them out to small and medium enterprises such as the once famous Ritz Nite Club which has now been turned into a spares shop and Liquids Bar which is now rented out to an automobile spares shop as well.
The idea to convert beer outlets into strategic business units was mostly motivated by periods of business redundancy inspired by the Covid-19 pandemic where people changed the culture of visiting beer outlets.
Online Reporter