Some eateries increase prices, others mull doing so next year

 

Associations representing food service operators are considering increasing the price of food and drinks next year due to the soaring cost of ingredients and goods.

While there has been no decision yet on the increment rate, restaurant operators said price hikes would be inevitable as they cannot absorb the rising costs.

This is on top of some restaurants already increasing the prices of food and beverages by 10 percent. 

Malaysian Muslim Restaurant Owners Association (Presma), which represents 9,000 restaurants, said some proposed a 10 percent price hike for menu items to cover a 30 percent increment in cost due to expensive ingredients and goods.

Its president Jawahar Ali Taib Khan opined that eateries in Klang Valley and prime locations may need to add 10 to 20 sen for the people's most favourite food and beverages at Indian Muslim eateries.

These include teh tarik, Milo, nasi lemak, roti canai, thosai, chapati and mee goreng. 

"We have been able to maintain our prices for over three years. Presma is perhaps the only association that has asked its members not to raise their prices until Dec 30.

"But definitely we will impose an increment by next year, at a reasonable rate. We will minimise our increment," Jawahar said, emphasising that this is not meant for the operators to make money but to cover the rising costs.

"Even when we charge RM2.50 for one piece of roti canai, we can't make much money as we provide gravy or dhal curry with it," he added.  

The price hike issue will be discussed in Premas' annual general assembly next Wednesday.

Jawahar said Presma also wrote to Domestic Trade and Consumer Affairs Minister Alexander Nanta Linggi to secure an appointment and seek advice from the ministry.

It was reported last month that food and beverage giants, including Nestlé (Malaysia) Bhd and Fraser & Neave Holdings Bhd, raised retail prices of certain products amid the resumption of economic activities globally.

Besides costlier goods, Jawahar said the industry was struggling with worker shortages, forcing employers to fork out higher wages to hire staff, thus increasing overhead costs.

50-100 percent hike in costs

Malaysian Indian Restaurant Owners Association (Primas), which represents 1,500 members, believes that some of its members have increased the prices of food and beverages sold at their premises.

"The prices of ingredients and goods we bought increased by 50 to 100 percent," Primas vice-president C Krishnan said.

He attributed the sharp increments of goods prices to the pricier imported items caused by the disruption of the global supply chain since the Covid-19 pandemic.

Approximately 70 percent of the items used in the restaurants are imported, Krishnan said.

"A carton of 48 cans of condensed milk used to cost RM107 a year ago but now it's RM127. Imported dhal increased from RM123 to RM129 in just a week and we can't do anything about it. 

"It is almost impossible for us to sustain our businesses without increasing the prices at our eateries. I think we may need to increase prices by 15 to 20 percent to cover the rising costs. 

"Some of the restaurants increased their prices by 10 percent, or 10 sen to 30 sen, which is unlikely to have a real impact (on consumers). Customers understand as they purchase household goods too," Krishnan added.

Prisma has not yet called for a meeting with its committee members as Krishnan said before having a meeting, the association needs to ascertain if the increments will be permanent to determine if the prices are manageable.

"We do not encourage our members to increase their prices, but we cannot stop our members from doing so," he added.

Krishnan urged the government to understand the plight of the food service operators instead of just looking at the price tags charged to the consumers.

"Since March 2020, approximately 1,000 food outlets closed shop as they could not sustain the cost of running a business."

A matter of location 

Meanwhile, Malaysia Singapore Coffee Shop Proprietors’ General Association, which represents 20,000 members, has reportedly said that beverages at traditional coffee shops will increase by between 20 and 60 sen next month, depending on the location.

The price will increase 20-30 sen in rural areas and 40-60 sen in urban areas, its president Wong Teu Hoon was quoted as saying by The Malaysian Insight.

Wong said when the price of a cup of coffee is increased by 20 sen, the coffee shop only makes an extra RM20 if it manages to sell 100 cups a day.

He was also quoted by China Press as saying that no final decision has been made on the increment rate for beverages. - Mkini