Fredericton take-out owner says unlicensed food businesses cutting corners

Pavan Kumar Moodalkatte says he has complained to the Department of Health six times in the past 16 months.

After opening a Fredericton take-out offering South Asian food in August, 2022, he said he has seen business at his Riverside Café steadily drop. 

Moodalkatte blames that on increased competition from unlicensed kitchens.

He began complaining to health inspectors and others with the Department of Health in September 2023, about these new businesses that turn up on Facebook, WhatsApp and other social media platforms.

He said they offer the same subscription-based tiffin service he does — but they aren't following the same rules.

Moodalkatte closed his storefront operation about a year ago to focus on the subscription-based model that he says is very popular with newcomers to New Brunswick.

He said he invested approximately $20,000 to open his licensed commercial kitchen, which includes temperature-controlled infrastructure, along with proper lighting and cleaning routines.

But unlicensed food businesses, operating out of private homes, are charging less, he said.

In emails provided to CBC by Moodalkatte, he sent staff at the Department of Health several online advertisements for these services. In one exchange, a public health inspector responds to him, saying, "We are aware there are many people doing this online."

In a February 2024 email exchange with Kris Austin, who was minister of public safety at the time, Austin writes, "I have directed our team to step up their enforcement efforts to ensure compliance."

Moodalkatte describes the drop in his business as significant. In 2022, he said he had sales between $6,000 and $7,000 per month. Now those numbers have dropped to less than $3,000.

The Department of Health did not provide an interview, but in an emailed statement spokesperson David Kelly said there has been a steady increase in complaints about unlicensed kitchens in the past few years.

Kelly said these are often home-based food businesses that operate out of residential properties with no commercial kitchen space — selling their food through social media and websites.   

In 2021, the department received two complaints. In 2022, that number rose to eight, and in 2023 there were 20 complaints. In 2024 there were 35 complaints, Kelly said.