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Monday January 24, 2011

Coffeeshops to raise prices after festival

By ISABELLE LAI
isabellelai@thestar.com.my

PETALING JAYA: Most coffeeshops will increase the price of food and drinks after Chinese New Year. This is due to the rising prices of imported ingredients.

Kuala Lumpur Hawkers and Petty Traders Association vice-chairman Datuk Ang Say Tee, who confirmed this, said some coffeeshops had already increased prices by as much as 50 sen.

“Some food operators have already begun to increase their prices to adjust to more costly ingredients,” he said yesterday. Ang said the price increase was most likely to be permanent as it was unlikely that ingredient costs would decrease.

“However, there will also be some food operators who will not increase their prices as they are scared of losing business,” he said, adding that a 20% price increase was expected from food operators. Ang, who is also the Malaysia Garments Wholesale Merchants Association president, said textile prices had also gone up with manufacturers from China and India increasing prices.

“They said their production was affected by factors such as bad weather. Unlike food prices, garment prices fluctuate depending on the season,” he said. A char kuey teow seller in Section 17, PJ, Robert Lin, 38, said he would increase his prices on the second day of Chinese New Year.

“A small plate of char kuey teow will be sold for RM4.50 while a bigger portion will be priced at RM5,” he said, adding that it was a 50 sen increase from his current prices. But there was also some good news for consumers. A coffee shop proprietor in Alor Setar, known only as Chui, said he would not increase prices despite rising costs.

Original Penang Nasi Kandar Sdn Bhd owner Burhan Mohamed, 48, said his food prices would be maintained at the moment. Malaysian Indian Restaurant Owners Association president Datuk R. Ramalingam Pillai said Indian restaurants would not be raising their food prices.

“The Government has already helped out a lot in terms of subsidies. We are willing to accept the lesser profits we will earn,” he said.