Although economic activities have resumed ever since the relaxation of Covid-19 restrictions, businesses have continued to face other problems, including the shortage of raw materials and workers as well as rising transport costs.
These have led to wave after wave of price hikes as exemplified in the recent instances involving the prices of chickens as well as vegetables due to a shortage of supply.
It seems that even the prices of beverages at our beloved kopitiams will be subject to a price hike starting from next month.
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According to The Malaysian Insight, the prices of your usual beverages at traditional coffee shops will cost up to 60 cents more to help the owners manage rising operating costs.
Malaysia Singapore Coffee Shop Proprietorsā General Association president Wong Teu Hoon told them that the average price hike will be 20-60 cents, depending on the location of the coffee shop.
Wong explained that industry players across the board are forced to adjust their prices upwards because of rising operating costs.
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“Recently, many things have become more expensive ā from condensed milk and evaporated milk needed to make coffee or tea, to the salaries of employees, rent and cooking gas,” he said.
āSo the increase in prices of beverages is just a subsidy for the industry. It is certainly not to make bigger profits.ā
As a justification to the rise in cost, Wong said that 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.
āThat amount is not enough to pay the salaries of foreign workers. At most, it is only a subsidy.”
Wong also revealedĀ that the salary of a foreign worker has risen from RM1,200 to RM1,650 and the annual agency fee has shot up to RM9,500 from RM6,000.
“If the coffee shop is understaffed, customers will complain about slow service. So I hope everyone will understand our situation.”
Wong, who is also the president of Malacca Coffee Shop-keepersā Association, mentioned that most coffee shops in the state have not raised their prices in the past six years.
āWe have been maintaining prices even with the increase in rent, utility charges and employeesā salaries,ā he said.
āThis time, we are really forced to raise prices. Most businesses agree to start adjusting the beverage prices from January 1.ā
Kopitiams in other states to also increase prices
Speaking to The Malaysian Insight, Penang and Province Wellesley Cafe Association chairman Tan Kar Seong confirmed that beverage prices in traditional coffee shops in northern peninsular states will go up from January 1.
“The price of everything is going up and no one knows what has gone wrong. The situation is really bad.ā
Meanwhile, Johor Baru Coffee, Restaurant and Bar Operators Association chairman Tiong Kiu Wong said that only a handful of coffee shops in Johor Baru have raised the prices of their beverages by about 10%.
“They may have faced rent pressure, so they raised prices,” he said.
Please support our local kopitiams by purchasing your food and drinks from them.
Do you agree with the justification behind the increase? Let us know in the comments.
Also read: Price of Vegetables are Increasing Up To 200% but Farmers are Not Earning More
